FRAUD I CIVIL LITIGATION I FRAUD LITIGATION I BUSINESS LITIGATION I BREACH OF CONTRACT – $ 4.3 Million Verdict in favor of Cannabis Investor for Contractual Fraud – A CASE STUDY
By: Diana Adjadj, Esq.
September 24, 2020
Contract fraud victim alleges being wrongfully ousted from facility by contractor and awarded punitive damages following a jury trial.
On November 18, 2016 cannabis investor and fraud victim, John Doe, sued longtime cannabis businessman and activist, Roe Doe, for breach of contract and fraudulently inducement to invest in his marijuana business. Per the contractual fraud complaint, the parties executed a written management transfer contract which was induced by fraud, specifically undue influence and concealment of material facts. Per the terms of the contract, John Doe would invest $2 million into Roe Doe’s medical marijuana dispensary and cultivation center, in exchange Roe would give operational control to John. In breach of the parties’ contract, once the new facility was constructed Roe failed to transfer operations to the fraud victim and John was removed from the facility. Following a prolonged jury trial, the jury found in favor of the plaintiff in the amount of $4,300,000. The jury verdict included damages for breach of contract, constructive fraud, breach of the covenant of good faith and fair dealing and punitive damages.
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