Elsberg Baker & Maruri won complete dismissal of all counts in a lawsuit against its client, Sol Goldman Investments, LLC (“SGI”). The plaintiffs, who hold interests in SGI, sought to sell some of those interests back to the company based on a valuation determined by a contractually mandated appraisal process. Unhappy with the $1.8 billion value ascribed to the company, the plaintiffs sued claiming that SGI breached its own operating agreement. After oral argument by David Elsberg, Justice Crane of the Commercial Division of the New York Supreme Court granted SGI’s motion to dismiss, rejecting the plaintiffs’ argument that the company must be bound by its own operating agreement even though the company was not a signatory to it. The court also dismissed plaintiffs’ claim for an accounting after hearing argument from third-year associate Angel Valle, who showed that under New York law, SGI could not be liable in an action for an accounting because it did not owe fiduciary duties to the plaintiffs.
SGI was represented by partners David Elsberg and Vivek Tata, associates Nic Martin, Chelsea Shaffer, Angel Valle, Kateryna Shokalo, and law clerk Ella Epstein.
