'Take a Hike': Becker & Poliakoff Eviscerates $160 Million Malpractice Suit
The Fort Lauderdale-based firm faced allegations it helped one investor defraud another on a $300 million real estate venture.
October 09, 2017 at 04:53 PM
3 minute read
Fort Lauderdale-based Becker & Poliakoff's attorney says it paid nothing to resolve a $160 million lawsuit by a Chinese conglomerate over the failed redevelopment of the Fashion Mall site in Plantation.
The firm and former employee Pamela Anselmo spent more than a year engaged in hard-fought litigation with Tangshan Ganglu Iron & Steel Co. Ltd., which alleged Becker & Poliakoff contributed to nine-figure losses on the real estate project.
But Friday, the parties filed a joint stipulation dismissing the case with prejudice and agreeing that each side would cover its own legal fees and costs.
“Ganglu completely abandoned its $160 million claim,” said defense attorney Robert Critton, partner at Critton Luttier Coleman in West Palm Beach. “After all the fanfare for the last two years … it's gone and not a nickel was paid; no consideration of any nature whatsoever.”
Co-defendant Anselmo left Becker & Poliakoff in 2014, joined Hinshaw & Culbertson, and now heads Anselmo & Associates in Fort Lauderdale.
According to Tangshan Ganglu, the firm and Anselmo “inexplicably” drafted “corporate documents which completely destroyed” the investor's majority ownership and fraudulently transferred it instead to a minority partner in 2010. Tangshan Ganglu claimed that until Becker & Poliakoff executed that document, it held a 99 percent stake in three companies leading a $300 million renovation that would transform the 33-acre mall property into a sprawling town center with retail, housing, dining and entertainment.
But Becker & Poliakoff “flatly denies it ever represented Tangshan Ganglu,” and claimed it met the company's chief executive “on at most a handful of occasions.” It alleged the lawsuit was a baseless attempt to recover millions after Tangshan Ganglu emerged on the losing side of a bankruptcy battle that its former partner initiated without its consent.
But Becker & Poliakoff representatives said the resolution vindicates the firm from all allegations and discredited Tangshan Ganglu's key witness, CEO and steel mogul Zhen Zeng Du.
“That's not a settlement. It's a capitulation,” said Becker & Poliakoff managing shareholder Gary Rosen, who celebrated a “rare result” in which a firm resolved a malpractice suit without even a nuisance payment.
The contentious litigation involved multiple motions to compel Tangshan Ganglu to turn over documents in discovery, and a motion to force Ganglu to show why it hadn't complied with two court orders.
The defendants sought to force the Chinese firm to turn over 10 years' worth of financial documents independently audited by multinational consultant Ernst & Young.
“They desperately did not want to produce those documents,” Critton said. “Those documents would have been a goldmine, and I think those documents were a factor in their decision to take a hike on this.”
Lawrence Kellogg and Jezabel Lima of Levine Kellogg Lehman Schneider + Grossman in Miami represented Tangshan Ganglu.
“Ganglu made a decision not to proceed with the litigation, which is a decision that was best for all the parties involved,” Kellogg said.
Critton said of opposing counsel: “I don't know that a firm would walk away from a $160 million claim, not trying to squeeze something out … some nuisance value. There was something there that stunk, and they wanted to be separated from this client.”
This content has been archived. It is available through our partners, LexisNexis® and Bloomberg Law.
To view this content, please continue to their sites.
Not a Lexis Subscriber?
Subscribe Now
Not a Bloomberg Law Subscriber?
Subscribe Now
NOT FOR REPRINT
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
You Might Like
View AllFowler White Burnett Opens Jacksonville Office Focused on Transportation Practice
3 minute readHow Much Coverage Do You Really Have? Valuation and Loss Settlement Provisions in Commercial Property Policies
10 minute readThe Importance of 'Speaking Up' Regarding Lease Renewal Deadlines for Commercial Tenants and Landlords
6 minute readMeet the Attorneys—and Little Known Law—Behind $20M Miami Dispute
Trending Stories
- 1Gibson Dunn Sued By Crypto Client After Lateral Hire Causes Conflict of Interest
- 2Trump's Solicitor General Expected to 'Flip' Prelogar's Positions at Supreme Court
- 3Pharmacy Lawyers See Promise in NY Regulator's Curbs on PBM Industry
- 4Outgoing USPTO Director Kathi Vidal: ‘We All Want the Country to Be in a Better Place’
- 5Supreme Court Will Review Constitutionality Of FCC's Universal Service Fund
Who Got The Work
Michael G. Bongiorno, Andrew Scott Dulberg and Elizabeth E. Driscoll from Wilmer Cutler Pickering Hale and Dorr have stepped in to represent Symbotic Inc., an A.I.-enabled technology platform that focuses on increasing supply chain efficiency, and other defendants in a pending shareholder derivative lawsuit. The case, filed Oct. 2 in Massachusetts District Court by the Brown Law Firm on behalf of Stephen Austen, accuses certain officers and directors of misleading investors in regard to Symbotic's potential for margin growth by failing to disclose that the company was not equipped to timely deploy its systems or manage expenses through project delays. The case, assigned to U.S. District Judge Nathaniel M. Gorton, is 1:24-cv-12522, Austen v. Cohen et al.
Who Got The Work
Edmund Polubinski and Marie Killmond of Davis Polk & Wardwell have entered appearances for data platform software development company MongoDB and other defendants in a pending shareholder derivative lawsuit. The action, filed Oct. 7 in New York Southern District Court by the Brown Law Firm, accuses the company's directors and/or officers of falsely expressing confidence in the company’s restructuring of its sales incentive plan and downplaying the severity of decreases in its upfront commitments. The case is 1:24-cv-07594, Roy v. Ittycheria et al.
Who Got The Work
Amy O. Bruchs and Kurt F. Ellison of Michael Best & Friedrich have entered appearances for Epic Systems Corp. in a pending employment discrimination lawsuit. The suit was filed Sept. 7 in Wisconsin Western District Court by Levine Eisberner LLC and Siri & Glimstad on behalf of a project manager who claims that he was wrongfully terminated after applying for a religious exemption to the defendant's COVID-19 vaccine mandate. The case, assigned to U.S. Magistrate Judge Anita Marie Boor, is 3:24-cv-00630, Secker, Nathan v. Epic Systems Corporation.
Who Got The Work
David X. Sullivan, Thomas J. Finn and Gregory A. Hall from McCarter & English have entered appearances for Sunrun Installation Services in a pending civil rights lawsuit. The complaint was filed Sept. 4 in Connecticut District Court by attorney Robert M. Berke on behalf of former employee George Edward Steins, who was arrested and charged with employing an unregistered home improvement salesperson. The complaint alleges that had Sunrun informed the Connecticut Department of Consumer Protection that the plaintiff's employment had ended in 2017 and that he no longer held Sunrun's home improvement contractor license, he would not have been hit with charges, which were dismissed in May 2024. The case, assigned to U.S. District Judge Jeffrey A. Meyer, is 3:24-cv-01423, Steins v. Sunrun, Inc. et al.
Who Got The Work
Greenberg Traurig shareholder Joshua L. Raskin has entered an appearance for boohoo.com UK Ltd. in a pending patent infringement lawsuit. The suit, filed Sept. 3 in Texas Eastern District Court by Rozier Hardt McDonough on behalf of Alto Dynamics, asserts five patents related to an online shopping platform. The case, assigned to U.S. District Judge Rodney Gilstrap, is 2:24-cv-00719, Alto Dynamics, LLC v. boohoo.com UK Limited.
Featured Firms
Law Offices of Gary Martin Hays & Associates, P.C.
(470) 294-1674
Law Offices of Mark E. Salomone
(857) 444-6468
Smith & Hassler
(713) 739-1250