DALLAS, TEXAS – JAN. 22, 2013
Wick Phillips, a full-service business law firm with offices in Dallas, Fort Worth and Austin, Texas, announces a significant legal victory in a $3.275 million tortious interference case against a New York hedge fund on behalf of River Capital Advisors of North Carolina, Inc. a former investment bank out of Charlotte (U.S. District Court for the Eastern District of Texas, Sherman Division; Case No. 4:10-cv-471; River Capital Advisors of North Carolina, Inc. v. FCS Advisors, Inc. and Brevet Capital Special Opportunities Master Fund, L.P.).
Among other findings, Judge Amos L. Mazzant, U.S. Magistrate Judge in the U.S. District Court, Eastern District of Texas – Sherman Division, ruled that the Defendants (FCS Advisors and Brevet Capital) intentionally interfered with the terms of a fee agreement between the Plaintiff (River Capital) and its client, Aruba Energy LLC a drilling company located in Plano, Texas. Judge Mazzant determined that FCS and Brevet refused to advance funds to Aruba Energy LLC which made it impossible for the company to pay River Capital’s success fee, which resulted in damages in the amount of $3.275 million. Accordingly, FCS and Brevet were ordered to pay River Capital damages and 18 percent interest totaling in excess of $7 million.
“This was a complicated case requiring patience and skill to unravel the complex nature of the financial relationships of the various parties in this transaction,” said K. Todd Phillips, cofounding partner and lead attorney for the Plaintiff. “During the trial, the evidence supported River Capital’s contention that tortious interference had occurred, and the Judge awarded our client a judgment of $3.275 million.”
“This case is an excellent example of the quality of work Wick Phillips attorneys achieve on behalf of our clients,” said Jeffrey W. Hellberg, Jr, partner of Wick Phillips. “This judgment is a major victory for River Capital, and gives testimony to the firm’s track record of successfully litigating some of the toughest legal cases in Texas and throughout the U.S.”
About Wick Phillips: Wick Phillips is a full service business law firm with offices in Dallas and Fort Worth. Its transactional section handles multiple M&A, financing, real estate, private equity and other commercial matters for a variety of clients. For more information visit www.wickphillips.com.