New York, NY, April 15, 2015 --(PR.com
)-- Attorney Thomas M. Lancia is proud to announce his victory in Brummer v. Red Rabbit, LLC, 2015 NY Slip Op. 02912 (1st Dep't, April 7, 2015), a unanimous Appellate Division decision in favor of Mr. Lancia'sclient Red Rabbit, LLC. Mr. Lancia successfully defended Red Rabbit, LLC against claims of fraud and breach of fiduciary duty.
In the lower court, John Brummer sued Rhys Powell over an investment Brummer made in Powell's company, Red Rabbit, LLC. Powell started the business in 2005 to provide healthy lunches to New York City preschools; he used his own funds as well as those from outside investors. Brummer made an investment in exchange for an interest in the company.
Brummer's complaint alleged that, in 2010, Powell offered Brummer a sum of money for virtually all of Brummer's interest in Red Rabbit, LLC, without disclosing that Powell had been negotiating a large investment in the company by two other investors. Powell's valuation was allegedly based on Red Rabbit's average income for the past year and projected income for the following year. Brummer accepted Powell's offer but later sued for fraud, breach of fiduciary duty and unjust enrichment.
Mr. Lancia and his associate, Krystina Maola, Esq., successfully defended Red Rabbit, LLC against Brummer's claims. The Appellate Division cited evidence that Brummer had long wished to sell back his interest in Red Rabbit and concluded that his decision to sell was not based upon any alleged false representation about the company's value or alleged concealment of additional investments. Therefore, the Appellate Division held that the fraud and breach of fiduciary duty claims were properly dismissed. Brummer's unjust enrichment claim was also held to be deficient because there was no allegation of actual loss.
About Thomas M. Lancia, Esq.
For more than 20 years, Mr. Lancia has successfully represented clients in the New York City area in business litigation, employment law matters and intellectual property transactions. Mr. Lancia is admitted to practice in both New York and New Jersey. He can be reached at (212) 964-3157 or online at www.lancialaw.com