R&H Victory In Jury Verdict Reporter of Colorado

Robinson & Henry represented owners of a sushi restaurant whose business partner pushed them out after six months. The case revealed a saga of deceit, unfulfilled promises, and a triumphant legal battle. Jury Verdict Reporter of Colorado provides an in-depth look at the details of the case that resulted in a $3.5 million verdict for our clients.

R&H represented Chinese immigrants who had invested a substantial sum of money in a sushi restaurant based on a verbal agreement. Their partner had assured them 40% ownership and 40% of the profits. However, as the restaurant began to flourish, their business partner’s actions took an unexpected turn. 

Civil Litigation Attorney Christopher “Kit” Davlin’s clients saw suspicious cash withdrawals, halted profit shares, and an abrupt exclusion from the business. This prompted Kit’s clients to seek justice for the breach of their trust and partnership. The absence of written contracts, however, posed a significant challenge for Kit and his clients. 

“We had to prove through the statements of the other side, through the actions and behaviors of the parties, and through the limited amount of accounting that we were able to recover that they were in fact partners, and that the money that they had put into the restaurant was an investment and not a loan,” said Kit.

The opposing side attempted to undermine Kit’s clients by forming an LLC that excluded them and asserting that the investments were loans, not partnership contributions. 

The case also saw instances of discovery misconduct, adding complexity to this legal battle. A crucial point occurred when the court instructed the jury to infer that crucial evidence had been concealed by the opposing party.

Kit explained, “The business had kept a separate accounting ledger that they refused to produce, and then, when the court ordered them to produce it, they lost it.” 

That’s when Kit said the court issued what’s called a spoliation instruction.  

“That allowed the jury to infer that the reason it was not produced was because it would’ve been unfavorable to the defendants,” he noted.

The jury’s ruling was a resounding victory for Kit’s clients. Jurors found in favor of the plaintiffs on each of the five claims, including: 

• breach of contract

• civil conspiracy

• civil theft

• fraudulent concealment

• breach of fiduciary duty

The court also upheld additional claims of promissory estoppel and unjust enrichment. 

The damages awarded were substantial, totaling over $3.5 million, tripled due to civil theft, in addition to attorney’s fees.

Past results afford no guarantee of future results; each matter is different and must be judged on its own merits. Facts are those of an actual Robinson & Henry litigation case.

Business partners can draw invaluable lessons from this case and be reminded of the importance of clear communication, written agreements, and the courage to protect one’s rights. 

Learn more about the jury verdict from Kit in this episode of "From Our Perspective".