Fishkin Lucks secured an award of more than $800,000 for its client, an AI-powered liquidity provider, in a commercial arbitration before the American Arbitration Association in New York. The arbitration arose from an agreement through which the Firm’s client extended capital to a company that sells and distributes beauty, fitness, and health products, in exchange for certain contractually defined repayment obligations. A third party then acquired a majority of the beauty company’s membership interests and agreed to assume all of the beauty company’s liabilities, including its obligations to the Firm’s client. The acquiring company immediately defaulted by failing to make contractually required payments, and we commenced arbitration against the beauty company, the acquiring company, and the acquiring company’s principal. After discovery, the Firm moved for summary disposition, arguing that (i) the beauty company had breached the agreement by failing to make required payments and by selling a majority of its equity to the acquiring company in violation of a provision prohibiting a sale, (ii) the acquiring company assumed the obligations of the beauty company, and (iii) the acquiring company’s principal had tortiously interfered with the underlying agreement by preventing payment and by acquiring the beauty company’s equity, despite knowing it was prohibited under our client’s agreement with the beauty company. The arbitrator agreed and adopted the Firm’s arguments, finding all three respondents jointly and severally liable for the full contractual obligation, along with attorneys’ fees and interest.
