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GRSM Secures Trial Victory in Breach of Contract and Cross-Claim Dispute Involving Sale of Business

Gordon Rees Scully Mansukhani San Diego Partner Roger Frederickson successfully represented a limited liability company in a commercial dispute arising from the sale of a bar business and associated liquor license.

The plaintiff, GRSM’s client, had sold the business with a carry-back note for half the principal balance. When the purchasing LLC ceased payments after one year, GRSM filed suit to enforce the promissory note and security agreement. In response, the defendant LLC and its three individual members filed cross-claims, alleging violations of the agreement’s good will provision, unfair business practices, harassment, and nuisance.

GRSM first secured summary judgment on the client’s breach of contract claim, reserving damages for trial. After a five-day jury trial, the court granted a directed verdict awarding $115,511.89 in affirmative damages to GRSM’s client and issued a non-suit on the opposing party’s claims of breach of contract, breach of the implied covenant of good faith and fair dealing, and unfair business practices. The remaining nuisance and harassment claims were submitted to the jury, which returned a swift verdict in favor of GRSM’s client after less than an hour of deliberation.

This result highlights GRSM’s Commercial Litigation practice’s skill in navigating complex contractual disputes and effectively neutralizing cross-claims through targeted legal strategy. GRSM’s attorneys are experienced trial advocates who deliver strong results in high-stakes business litigation across industries and jurisdictions.