Lucas and Varga Obtains Summary Judgment in Business Asset Dispute

Partner Doug Varga recently obtained summary judgment in favor of our client, a foreign-owned company engaged in the design and manufacture of precision components and assemblies for the aerospace and defense industries. The case involved a breach of contract claim by a company operated by a former employee of our client’s Alabama-based subsidiary. The plaintiff filed suit in February 2011 in the U.S. District Court for the Southern District of Ohio, claiming that it entered into a contract with our client in 2007 for the purchase of certain assets to be used by a company the employee had formed in Columbus, Ohio. The plaintiff sought damages in excess of $1.5 million. Our client denied liability and asserted a number of counterclaims (including fraudulent inducement to contract and intentional and negligent misrepresentations of fact) based on statements the former employee made to induce the company to enter into the agreement. On November 20, 2012, Judge George C. Smith issued a ruling on the parties’ cross-motions for summary judgment. The court held that the plaintiff could not recover on its breach of contract claim as a matter of law because it failed to provide reasonable notice of alleged non-delivery (as required by statute), and because it could not establish proof of damages. The court entered judgment in our client’s favor and dismissed the action. Doug was lead counsel in the case. He received substantial support from co-counsel, Attorney John Marsh, of the Columbus, Ohio firm of Hahn Loeser & Parks LLP.