It is unfortunate UVDI chose to breach this contract, and I greatly appreciate the efforts of Michael Morris and David Krol of Valensi Rose
Los Angeles, CA (PRWEB) August 21, 2008
Valensi Rose, PLC prevailed in a breach of contract arbitration on behalf of its client, Mr. Stephen Pegg, former vice president and chief financial officer of UltraViolet Devices, Inc. ("UVDI"), and former president of its Sparks Technology division. A court entered judgment against UVDI in the amount of $537,165 plus interest. The judgment also contemplates future legal fees and costs incurred to compel UVDI to satisfy the judgment.
"We are naturally very pleased with the outcome on behalf of our client," said Valensi Rose Managing Partner Arlen Gunner. "Employment law proceedings can be very long, drawn-out and expensive. Through arbitration, our client had his case heard within a shorter time frame and at a lower cost."
"It is unfortunate UVDI chose to breach this contract, and I greatly appreciate the efforts of Michael Morris and David Krol of Valensi Rose," said Mr. Pegg. "Their professionalism, dedication and commitment have been instrumental in bringing the facts to light."
In 2004, Mr. Pegg was hired by UVDI, a privately held manufacturer and supplier of purification products for surface, air, water and effluent treatment, as its chief financial officer and vice president of finance. In October 2005, Mr. Pegg and UVDI's chairman of the board signed an Employment Continuation Agreement, which provided certain assurances in the event of a change of control at UVDI. Shortly after the Agreement was signed, UVDI promoted Mr. Pegg to president of Sparks Technology, a company that UVDI acquired.
In 2006, UVDI's chairman died, and within two months, Mr. Pegg was terminated without cause or notice. When Mr. Pegg sought to enforce the Agreement, however, UVDI claimed that the Agreement was unenforceable, and refused to provide severance pay, continue his benefits, or pay any of his legal fees, as required under the Agreement.
Valensi Rose filed a Demand for Arbitration on its client's behalf, and alleged that UVDI breached the Agreement. In response, UVDI filed a $1 million counterclaim, accusing Mr. Pegg of fraud in procuring the Agreement. UVDI also sought to rescind the Agreement, and punitive damages.
After reviewing all of the facts with their client, Valensi Rose decided to file a Motion for Summary Judgment in an attempt to dispose of all of UVDI's affirmative claims without a hearing. In response, UVDI did not dispute any of the facts; instead, it argued that the alleged facts proved that Mr. Pegg violated his fiduciary duties to UVDI.
The arbitrator granted the Motion, determining that all of UVDI's claims against Mr. Pegg, and its defenses to the enforceability of the Agreement were without merit. Soon afterward, UVDI conceded liability on Mr. Pegg's claim for breach of contract.
The judgment was rendered by the Superior Court of the State of California, County of Los Angeles - West District (Case No. SS016851).
About Valensi Rose, PLC:
Established in 1952, Valensi Rose, PLC is a full-service business law firm providing its clients with the broad range of legal services needed in a complex business environment. The firm is AV® rated by Martindale Hubbell (its highest rating). The firm's practice areas include: federal, state and international tax planning and litigation; estate planning and probate; civil litigation, family law, real estate; business and corporate law; non-profit law; labor and employment law; and music, entertainment and intellectual property law.
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