RQN lawyers Mark Pugsley and Aaron Hinton, together with their co-counsel Kevin Simonof Strachan Strachan & Simon, P.C, won a significant victory after a 5-day trial in Utah State Court. In a detailed opinion issued last week Judge Matthew Bates awarded their clients compensatory damages in excess of $3 million, $2 million in punitive damages, and attorney’s fees.
The case, tried in Third District Court for the State of Utah, involved allegations of fraud, constructive fraud, breach of fiduciary duty, negligent misrepresentation, promissory estoppel and unjust enrichment against the clients’ tax advisor.
In ruling in their favor, Judge Bates found that the Defendant “took Plaintiffs’ money under false pretenses, invested it in a way that benefited him substantially, and kept all the proceeds when the loan defaulted. He bore no risk and kept most of the benefit. Then at trial, he attempted to change the terms of the agreement. Despite the plain and unambiguous language of the emails he sent to Plaintiffs, [Defendant] claimed that Plaintiffs were purchasing property in Minden, Nevada, not investing in a secured construction loan. The torts that [Defendant] committed in this case were willful and malicious, and his conduct was intentionally fraudulent.”
Mark Pugsley said, “This case represents a vindication of our client’s position after many years of litigation. We appreciate Judge Bates’ professionalism and attention to the details of the case. We are thrilled that our clients have finally been able to obtain justice.”
Kevin Simon said, “I echo my co-counsel’s sentiments in every regard and I am thankful for Judge Bates’ hard work. This is a deeply satisfying result and goes a long way in correcting a devastating wrong.”