Fox Partner, Marc J. Gross, Wins Ruling in Family Business Dispute That Paves the Way for $5 Million AwardApril 30, 2018 – Press Releases
In a court battle between siblings over the mismanagement of a family business, a Fox Rothschild litigation team, led by partner Marc J. Gross has won important rulings on a sibling’s liability that could lead to an award of more than $5 million for Gross’ client.
Gross represents Suzanne Zaretsky, who alleged that her brother, Francis Walsh III, of Saddle River, NJ, has disproportionately distributed money from the family’s company for his own personal use and to the exclusion of Zaretsky.
In doing so, Gross argued that Walsh violated New Jersey’s Limited Liability Company Act, breached his duties as the manager of the family company and defeated Zaretsky’s reasonable expectations as a member of the family business.
Now Bergen County Superior Court Judge Robert P. Contillo, P.J.Ch. has ruled on some of the central claims in the litigation, granting summary judgment on the issue of liability in favor of Suzanne Zaretsky.
The judge agreed with Gross and concluded that Walsh violated New Jersey law and committed oppressive conduct toward his sister, Zaretsky.
Walsh, as the managing member of the family’s business, “departed from the ordinary standard of conduct that one would expect a manager to engage in an extreme manner,” Judge Contillo wrote in a detailed 92-page decision.
Gross said the ruling paves the way for an award to Zaretsky in excess of $5 million in damages and attorneys’ fees when the parties return to Court on June 11, 2018.
“After many years of contentious litigation, Mr. Walsh will finally be brought to justice,” said Gross.
Gross was assisted on the matter by Associate Jordan B. Kaplan.