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July 2020

Las Vegas Team Finds Resolution for Client in Restaurant Deal Gone Wrong

Las Vegas Partner Robert E. Schumacher, Associate Dylan Houston and Paralegal Cristina Pagaduan, found resolution in post-trial actions in a judgment obtained in their clients' favor on all claims relating to the sale of a popular, local Vietnamese Restaurant. 

On behalf of the firm's clients and sellers of the business, the Las Vegas team filed a lawsuit against the defendants in Clark County District Court alleging they breached the Purchase & Sale Agreement (“PSA”) by failing to pay the agreed price for the restaurant.  The defendants denied the allegations and their counter-claims contended that the plaintiffs made material misrepresentations as part of the transaction and failed to satisfy certain conditions to the PSA.  The defendants sought to rescind the PSA and asked the court to order the firm's clients to refund approximately $200,000 paid toward the purchase of the restaurant.  The defendants also sought reimbursement for approximately $50,000 they paid for maintenance and improvements made to the restaurant after defendants assumed ownership and began operating the business. 

After aggressive post-trial law and motion by the defendants, on October 21, 2019, the Court rendered the Second Amended Judgment awarding plaintiffs $202,000 for the principal amount, $23,337 for pre-judgment interest on the principal amount, $7,415 for costs, and $339 for pre-judgment interest on cost, for a total judgment award of $233,091. 

On September 4, 2019, Defendants filed their notice of appeal relating to the Judgment and all prior orders that were merged into that Judgment. 

Defendants did not post and appellate bond to stay execution of the judgment pending the appeal, therefore Gordon & Rees obtained writs of execution and garnishment on Defendant’s bank accounts.  Gordon & Rees attorneys also had the Las Vegas Constable serve a writ of execution to collect all cash contained in the cash register (“tap the till”) and/or safe at the restaurant.

On June 19, 2020, Defendants filed their notice of voluntary withdrawal of appeal. To read more about this case, please click here

Dylan Houston
Robert E. Schumacher