Complete Victory in Arbitration for Printing Supplies Manufacturer

In November 2007, Payne & Fears LLP obtained an arbitration award in favor of its client, a manufacturer of printing supplies, awarding it over $800,000 and ordering future royalty payments which will push the total recovery to approximately $1.5 million. The client had sold its operations and assets to another manufacturer under a contract providing for future royalty payments based on revenue from the sold operations. After the sale, the buyer refused to make any royalty payments and instead sued the client, claiming that it had misrepresented the state of the business. Payne & Fears LLP successfully moved the Orange County Superior Court to refer the case to arbitration as the parties’ contract specified, and counterclaimed for the unpaid royalties. After a three day arbitration in Los Angeles, the arbitrator issued an award finding in favor of the client on the buyer’s fraud claim and ordering the buyer to pay back royalties and interest of over $668,000, attorneys’ fees and costs of over $127,000, and future royalties. Payne & Fears LLP then moved the Superior Court to enter judgment based on the arbitration award, which it did on March 20, 2008. Daniel M. Livingston and Daniel F. Lula handled the arbitration and court proceedings.