Defense Verdict and Appellate Decision Won in Business Litigation Matter
September 21, 2011
A defense verdict won by Russell S. Wollman and German A. Marcucci was argued by Edmund G. Farrell, III in the Appellate Court and upheld. The case arose from allegations that the defendant, an electronic wholesaler, breached a sales contract and committed fraud.
The defendant is in the business of brokering used video games and used electronic devices associated with video games. The plaintiff refurbishes and resells these used products.
The defendant sold various used video games and used electronic products to the plaintiff by way of an online auction. The plaintiff received 24 pallets of these games and video devices from the defendant on an “as is” basis, without inspection, at an over cost of $300,000. Upon receipt of these products, the plaintiff believed that they were of lower quality than expected. The plaintiff sued the defendant, alleging that the wholesaler breached the sale contract and fraudulently concealed the condition of the products. The plaintiff also alleged that the defendant committed fraud by not disclosing that the source of the goods was one of the plaintiff’s competitors, contending that the purchase would not have been made had this information been disclosed.
The case proceeded to a three-day bench trial where the judge found that the defendant did not breach the “as is” contract. The judge also found that the defendant did not commit fraud by not disclosing the source of the goods.
The plaintiff appealed the judgment, contending that the court erred in its findings, but the appellate court upheld the trial court’s findings, indicating that there was substantial evidence to support the decision, and affirmed the judgment in favor of the defendant.