Foley litigators succeeded in greatly narrowing claims brought against our client, Vicor Corporation. Vicor was sued by its former distributor in Israel, Bruno International, Ltd., for breach of the covenant of good faith and fair dealing, misappropriation of confidential information, tortious interference with contractual relations and advantageous business relationships, and unfair and deceptive practices under Chapter 93A. The claims stemmed from Vicor’s contracting with additional distributors in Israel and then terminating Bruno. After considering the Foley team’s motion to dismiss the five counts, Judge Woodlock issued a 63-page decision dismissing three counts in their entirety, including the 93A claim, and one count in part. The client is “quite happy” with the outcome as it transforms the case from a very large potential liability to a very small one.
Foley secured a major victory for Goulds Pumps, Inc., a manufacturer of industrial pumps, and flagship subsidiary of ITT Corporation. Over the last decade, Goulds Pumps has become one of the leading industrial pump manufacturers for the North American oil and gas market, due in large part to its state-of-the-art API (American Petroleum Institute) pumps. In December 2013, Goulds Pumps’ biggest distributor, DXP Enterprises, Inc., announced its plan to acquire B27, LLC. However, PumpWorks 610, a division of B27, also manufactures API pumps, selling them in the same territory as that granted to DXP under the parties’ distribution agreement. Despite being warned by Goulds Pumps not to acquire B27 DXP completed the purchase in January 2014, prompting Goulds Pumps to file an arbitration demand in April 2014, seeking a declaratory judgment that it had the right to terminate DXP as a distributor. After DXP’s failed TRO attempts in both state and federal court in Texas, arbitration began in earnest in September 2014. A year later, and after a seven-day hearing with testimony from 12 witnesses and rounds of post-hearing briefings, the arbitrator held that, under the Texas Dealer Act, Goulds Pumps did indeed have good cause to terminate DXP.
In November 2008, Foley was retained to represent Landamerica's top officers, including the CEO, CFO, general counsel, treasurer, and two others, when the Fortune 500 company was forced to declare bankruptcy in the midst of the financial meltdown. LandAmerica, which included two of the largest title insurance companies, also included a 1031 exchange subsidiary that invested the funds of its clients in Grade A Auction Rate Securities, which became frozen and unavailable when the market collapsed. What followed was a years-long series of investigations and civil litigation. The DOJ and the SEC conducted their investigations over a two-year period and ultimately were persuaded by Foley not to bring any charges against our clients or any other employees. Multiple waves of litigation against our client followed — by the bankruptcy trustee, a MDL class action on behalf of the 1031 exchange purchasers, an ERISA class action, and several related litigation matters, including pending litigation by the MDL Opt Outs. We obtained remarkable success in resolving the complex multiple parallel investigations and civil litigation on behalf of our clients over seven years.