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July 29, 2010 |
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| March 11, 2010 |
By: Review staff & VerdictSearch |
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Case: Strategic Technologies, Inc. v. Shaw Communications, Inc. and FSN Cable, Inc.
Case no: 2005-4465-CA-01
Description: Breach of asset purchase agreement
Filing date: March 1, 2005
Award date: Dec. 18, 2009
Decision: $4.82 million
Judge: Miami-Dade Circuit Judge Maxine Cohen Lando
Plaintiff attorney: Alvin Lodish, Daniels Kashtan Downs Robertson & McGirney, Coral Gables
Defense attorney: Michael D. Ehrenstein, Ehrenstein Charbonneau Calderin, Miami
Details: Strategic Technologies, Lennar’s cable provider subsidiary, cried foul years after it sold its large South Florida grids to FSN Cable, claiming the buyer miscalculated the number of subscribers and improperly held back millions of dollars.
The presidents of both companies agreed Strategic would receive $2,368 for every new subscriber entering the system in the three years following a contract signed in 2000.
At the time, Strategic operated grids in Miami-Dade and Palm Beach counties and Clermont, mostly in new neighborhoods under construction.
But the development stage led to confusion. Homeowner associations that later formed often offered basic cable, and FSN miscalculated which subscribers were new, only counting those seeking upgrades or demanding service visits. FSN, which changed its name to Moffat Communications, later sold the grids to Canadian entertainment and cable provider Shaw Communications. However, Moffat never paid Strategic the disputed tab.
Plaintiff case: Close to five years after Strategic signed the deal with FSN, it accused FSN and Shaw Communications of not paying up. A complaint filed in Miami-Dade Circuit Court in 2005 alleges both companies overlooked at least $2.7 million in fees.
“Moffat started counting improperly, and Shaw just continued the practice. We got paid for some of the additional subscribers but not all of them. They did not think they had to pay us for each new unit homeowner,” Lodish said. “They had a financial obligation to take a look at this.”
The asset purchase agreement included a clause calling for alternative dispute resolution and stated any financial disagreement should result in both companies seeking the opinion of a certified public accountant, who would investigate the matter and set a monetary award. The plaintiffs ended up taking the dispute to Miami-Dade Circuit Court. After repeated defense requests for the appointment of an accountant, Judge Maria Espinosa Dennis, who originally had the case, ordered both companies to stick to the contract and find an accountant on their own.
They couldn’t agree and had the American Arbitration Association provide an independent accountant, Baron J. Frankel, a partner at Habif Arogeti & Wynne in Atlanta, to look at the numbers and review the contract.
Defense case: The defense argued Shaw was not at fault for any miscalculations because it simply continued the practices handed down after it acquired grids from Zephyrhills-based Moffat. When the accountant’s award was brought to court to be finalized, Ehrenstein argued the accountant didn’t fully explain how he came to his conclusion.
Outcome: After two years of number crunching, Frankel concluded Moffat "did not count the number of total basic subscribers" correctly. He estimated an underpayment of $2.39 million and added $2.42 million in interest based on a fixed 12 percent annual rate set in the agreement.
Because Dennis was rotated to the family division, the matter went before Miami-Dade Circuit Judge Maxine Cohen Lando on March 2. She granted final judgment from the bench against Moffat in the amount determined by the accountant.
Quote: "You should be careful what you wish for. We initially filed a circuit court case. They objected and insisted that the alternative dispute resolution be applied. We did the procedure and ended up with a $4.8 million award," Lodish said.
Post-award: If the award isn’t paid by Moffat, Lodish said Strategic will try to enforce the judgment against Shaw Communications instead.
— Jose Pagliery
Motor Vehicle
PALM BEACH CIRCUIT COURT
Teen awarded
$1.1M for rear-ender
A teenage passenger who sustained a severe neck injury in a rear-end collision caused by a school bus was awarded nearly $1.1 million.
In 2005, Altavious Carter, then 14, was a passenger in a van struck by a Palm Beach County School District bus. The school board admitted negligence, and the bus driver, who ran a red light, resigned. Altavious was wearing a seat belt. The force of the accident threw him from his seat across the van. Carter was fitted with traction with metal rods screwed to the side of his neck. He underwent a discectomy and a two-level cervical fusion at C6-7. Altavious said he underwent a grueling seven-month rehabilitation process.
Case: Carter v. Palm Beach County School Board
Case No.: 50-2007-CA-009298
Plaintiff lawyers: Brian R. Denney and Jack P. Hill, Searcy Denney Scarola Barnhart & Shipley, West Palm Beach
Defense lawyers: Scott D. Krevans and Thomas J. McCausland, Conroy Simberg Ganon Krevans & Abel, Hollywood
Premises Liability
MIAMI-DADE CIRCUIT COURT
Woman awarded $506,334 for sidewalk fall
A woman who fractured her ankle in a sidewalk fall allegedly caused by a hole was awarded $506,334.
In 2002, Maria Suarez was walking in a condominium complex when she fell. She claimed a 5-inch hole caused by a water main was to blame. She had two rods placed in her ankle. She underwent a year of therapy and is now confined to a wheelchair. She relies on her husband for help in her daily life.
Case: Suarez v. First Addition to Alameda Jardins PUD Home Owners Association
Case No.: Not filed
Plaintiff lawyer: Leonardo A. Canton, Leonardo A. Canton Attorney at Law, Coral Gables
Defense lawyer: Not represented
PALM BEACH CIRCUIT COURT
Jury awards shopper struck by gate at store
A Gap shopper who was struck in the knee by a swinging gate door at a cashier’s stand recovered $82,476. Lyonel Rigaud was shopping when a clerk let a hinged gate to swing into him. Rigaud sustained a fractured patella and partial medial meniscal tear.
Case: Rigaud v. The Gap Stores Inc.
Case No.: 50 2008 CA 039605
Plaintiff lawyer: Robert E. Gordon, Gordon & Doner, Palm Beach Gardens
Defense lawyer: George Jeffrey Vernis, Vernis & Bowling of Palm Beach, North Palm Beach
Water Sports
PINELLAS CIRCUIT COURT
Family awarded $1.95M for fatal crash
A jury awarded $1.95 million to the family of a teen who died when a personal watercraft collided with a drunken boat operator.
In 2005, Corey Vincent, 19, was riding the jet ski with a passenger when they were struck by Miquel Alvarado, who had a blood alcohol level of 0.11.
Case: Estate of Vincent v. Alvarado
Case No.: 06-CA-001928
Plaintiff lawyer: Joseph Parrish, Parrish Law Firm, Brandon
Defense lawyer: Ted Corless, Corless Zinober, Tampa
Products liability
DUVAL CIRCUIT COURT
Jury faults engine stand design in accident
A man who fractured his leg when an engine stand tipped over while holding a car engine recovered $980,307. Kenneth Branson was working on his car when the Allied International stand tipped over. Branson suffered a fractured tibial plateau of the left leg.
Case: Branson v. Allied International
Case No.: 16-2007-CA-009232
Plaintiff lawyer: Andrew H. Nachman, Rahaim Watson Dearing & Moore, Jacksonville
Defense lawyer: Michael Lee Glass, Fulmer LeRoy Albee Baumann & Glass, Jacksonville
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