Is it possible to get a decent arbitration award entirely via Zoom?
The answer is yes! We at McGonigle Law, received the #1 arbitration award in California in 2021 as recognized by topverdict.com. McGonigle Law recently recovered $3,461,030.05 on behalf of a client at an arbitration conducted entirely via Zoom. Click here to see Top Verdict Award.
Our firm represented the Plaintiff in a misrepresentation and wrongful termination case against Plaintiff’s former company, PeerNova, Inc. and Naveed Sherwani. The case was arbitrated to conclusion by Martin H. Dodd, Esq. under the auspices of the American Arbitration Association.
The Plaintiff was a successful cryptocurrency entrepreneur and blockchain industry innovator who had founded one of the industry’s most innovative and successful Bitcoin cloudmining companies before agreeing to merge his company to form PeerNova, Inc. Thereafter, Plaintiff was wrongfully fired from his position in the resulting company. The Plaintiff was represented by Timothy McGonigle, Esq. and Thomas Foote, Esq.
On July 17th, 2017, we filed the case in the Santa Clara County Superior Court, seeking damages for negligent misrepresentation and wrongful termination in violation of public policy, among other claims. The dispute was largely centered around two events: (1) various promises made by Defendant Naveed Sherwani, which convinced the Plaintiff and others to merge their company with Sherwani’s company to form PeerNova, Inc., and (2) the unfair termination of Plaintiff from his position as Vice President at PeerNova.
We argued that Sherwani had made certain promises leading up to the merger – promises which were not kept, and that the termination was a breach of the Plaintiff’s employment contract with PeerNova. McGonigle Law further argued that their client was terminated as retaliation for using his shareholder’s voting rights to vote two directors off PeerNova’s board of directors due to differences of opinion about business strategy.
The Results of the Arbitration
After a lengthy arbitration process (conducted entirely via Zoom due to the Covid-19 pandemic), we were able to produce a stellar result for our client. The firm recovered $3,023,807 for the Plaintiff in monetary damages, lost earnings, emotional distress, punitive damages, and interest. In addition, an additional $485,000 was received via a pre-arbitration settlement with a co-defendant, which made the total recovery $3,508,807 for Plaintiff. The Final Arbitration Award was issued on June 15, 2021 and following a post-arbitration hearing, the full amount awarded was paid in late 2021.
It is relatively common for power struggles and conflict to occur in new blockchain startups as the industry is very new, dynamic, and volatile. In this particular case, one of the leaders of a promising cryptocurrency company was duped into voting his shares in favor of a merger, and then unfairly fired from the resulting company because of his effort to influence who sat on the company’s board – a right which he was entitled to exercise, without penalty under California and Delaware law because of his shareholdings and voting power.
We were able to overcome summary judgment and ultimately prove at arbitration that the key claims made by the Plaintiff were well founded, a years-long effort which demanded substantial legal skill and expertise. We were all thrilled with this hard fought victory and that the Plaintiff would be fairly compensated for the financial losses and emotional distress that he sustained following his unfair termination from the company.
If you have clients that you believe could benefit from our services, please get in touch with us at McGonigleLaw.com.
“When Tim and his staff took on my case, they had hurdles created by former counsel to overcome. Even with all that was working against us, Tim and his staff used their considerable gifts and skills to successfully resolve the case.“