Allegations of Fraud Come to Specialized Florida Court
When arbitration isn’t enough to settle a business-related disputed, litigation may be all but inevitable. Resolution there amid may be cut and dry from time to time, but it often requires the careful attention of committed legal professionals and the courts that hear their arguments.
That’s the story for one Florida business whose case now requires special adjudication by the Complex Business Litigation Division.
The Eleventh Judicial Circuit Court of Florida is taking up the matter of Cable-X BV, a company owned by plaintiff Yair Levy. Levy was formerly partnered with Miami-based real estate developers Michael and David Adler, but he now alleges that their Adler Group Inc. defrauded him of a large sum of money (in the millions of dollars) amid their dealings.
Judge John W. Thornton is determining whether to hear or dismiss the lawsuit within the state’s specialized forum for intricate business litigation.
Complaints allege that the real estate developers agreed to allow Cable-X the exclusive rights to use a patented technique wherein coaxial cables may be replaced with fiber optic variants in a more efficient fashion.
The process generally requires significant renovation that can become costly and time-consuming. Cable-X was of course quite interested in capitalizing upon a best practice that could save considerable time and money for its operations. But the innovator now claims that the Adler reneged on their agreement in nefarious fashion.
Cable-X claims that the Miami developers forged a company called Kable-X and proceeded to cut a deal more directly with the Austrian developers of the conversion process. Austrian courts initially brought the two sides to compromise, but the Israeli-based Cable-X alleges that a second agreement didn’t last for long.
“Under the second bypass agreement, all terms and conditions of the settlement agreement remained the same, with the sole exception that the plaintiff was no longer an intended third-party beneficiary,” the complaint explains. “The plaintiff was no longer an acknowledged owner, the plaintiff was no longer entitled to reports or distributions, and the plaintiff no longer was entitled to a seat on the board.”
The ongoing and potentially costly dispute has left the uniquely situated Florida court as the next logical means of resolution.
As Cable-X attorney Michael Ehrenstein explains, “When the Israelis heard that the Adlers allegedly went behind their backs again and breached their obligations and violated fiduciary duties, they decided to take the issue to court in order to be recognized as shareholders and receive a share of the millions of dollars in expected revenues that they were deprived of.”
Judge Thornton should make a decision about whether to hear the case before the end of July.
Business Fraud and Protecting Your Own Enterprise
If you are someone you know is concerned about the risk or reality of fraud, breach of contract, or other potentially complicated disputes, going it alone isn’t an option. The Federal Bureau of Investigation describes business fraud as, “dishonest and illegal activities perpetrated by individuals or companies in order to provide an advantageous financial outcome to those persons or establishments.”
The form said fraud may adopt varies. It might include failure to deliver owed goods or services, or it might include discrepancy with respect to agreed-upon payments. Fraud may also occur amid any number of very deliberately orchestrated schemes.
Whether you’ve been improperly accused of fraud or are the victim thereof, business law attorney Matthew Fornaro, P.A. can assure you professional and committed representation in Coral Springs and Broward County areas. To request a consultation, simply use our web-based form located here.
