Fraudulent Real Estate Transaction:
The firm's client purchased an RV campground. The sewage needs of the campground were served by a private waste-water treatment plant. Treated water was discharged from the plant into an old irrigation ditch which ran across neighboring land. This arrangement had been in effect for at least 20 years prior to the purchase by the client. Shortly after the purchase, the client received a demand from the neighboring landowners to discontinue use of the ditch. The neighbors were beginning to develop the adjoining land and considered the ditch to be detrimental to their efforts. The client investigated other ways of dealing with the waste-water needs of the campground and determined that no viable alternative existed. The landowners sued the client to terminate use of the ditch, claiming that the client had no legal right to use the ditch and that the discharge was a public health risk. The case went to trial and the jury found that the client had a prescriptive easement for the use of the ditch and could continue to use it for the discharge. During the course of the litigation it was learned that the previous owner of the campground knew of the landowner's claims about the right to use the ditch but failed to inform the client. Client sued the previous owner for fraud, and that case was eventually settled.
A Bad Accountant:
The firm's client, a machinist, hired an accountant to handle the finances of and keep books for his business. The accountant was to be paid a flat fee and a percentage of the client's profits. After several months of reports to the client that his business was prospering, the client discovered that in fact he was losing money, that tax payments to the government had not been paid and many bills had gone unpaid. The accountant had also paid himself a substantial sum based on a percentage of non existent profits at a rate that was far in excess of what the client remembered agreeing to. The accountant claimed that the client had concealed expense information from him and had misappropriated funds, and were the reason for the unreported losses. The accountant also produced fee agreements which he claimed justified his percentage of profits. The client claimed that the agreement was altered from the original. The accountant sued for unpaid fees. Using other counsel, the client counter-claimed for fraud. At a mediation session, the accountant offered to withdraw his claims if the client would withdraw his. Previous counsel advised the client to accept the offer. The client refused the offer, and with only days left until trial, fired previous counsel, and retained Joseph A. Davies. At trial, all the accountant's claims were dismissed and the client was awarded substantial damages on his fraud claim.
Manufacturing Defect:
The firm's client, a manufacturer of induction heating equipment, manufactured a heating system which was included in a line which treated and painted rolled steel. When the plant owner experienced multiple delays and malfunctions in running the line, the owner sued several manufacturers which produced elements of the line, on theories of breach of contract, breach of warranty, and negligence. The client cross claimed against one of the suppliers of parts for his system. Attorney Joseph A. Davies arranged a mediation session with a nationally known mediator and helped negotiate a settlement which preserved the client's advantageous business relationship with the plant owner.
