In addition to its work for investment professionals and enterprise software and online companies, Sullwold & Hughes has handled a variety of general commercial cases in federal and state court and before arbitrators. The firm has significant experience, including trials to verdict or judgment, in three particular areas: litigation involving fiduciaries; real-estate and construction litigation, and unfair competition cases.
Litigation involving fiduciaries. Many of the firm's investment litigation matters have included allegations of breach of fiduciary duty. We also have litigated cases involving fiduciary duties on behalf of:
- The Special Trustee of a Living Trust, in actions alleging that in excess of $10 million in recaptured depreciation income received by a trust was properly allocable to the income beneficiary, rather than to trust principal.
- The officers of a real property syndication company, in actions alleging that the company misrepresented the nature and risks of limited partnership interests offered to investors. The firm also represented the officers against allegations that they had committed ERISA violations in their roles as trustees of the company's profit sharing plan.
- A member of a California limited liability corporation, in an action alleging that the other members breached fiduciary duties owed to him by paying excessive compensation to themselves and their relatives, and by taking corporate action without the membership approval required by the LLC operating agreement.
- Limited partners in litigation alleging that, when their limited partnerships' assets were sold, the general partner negotiated different and more lucrative consideration for its interests than for the interests of the limited partners.
Real-estate and construction litigation. The firm has represented both developers and general contractors in litigation over commercial real-estate projects. In addition, it has represented both owners and tenants in disputes over commercial leases. These cases have involved legal issues relating to the interpretation of construction contracts, leases, and joint-venture agreements as well as factual issues relating to the allocation of responsibility for cost overruns, "extra" work, and uninsured code upgrades.
Unfair competition litigation. Under California law, many disputes between businesses and their customers can be recast as "unfair competition" claims under Business and Professions Code section 17200 or the Consumer Legal Remedies Act (Civil Code sections 1751 et seq.). Sullwold & Hughes has substantial experience litigating such statutory claims on behalf of its corporate clients. We can trace such experience back to our prior firm, where we convinced the Court of Appeal to dismiss a purported class action on the merits because the plaintiff could not prove both procedural and substantive unconscionability. Subsequently, we have had similar success in convincing trial courts that the plaintiff's claims did not qualify for class or "private attorney general" status under the applicable statutes.
We also have litigated "unfair competition" claims brought by a corporation against one of its competitors. In particular, we have both prosecuted and defended claims alleging the misappropriation of trade secrets, including customer lists and proprietary information, as well as claims alleging trademark infringement.