Case type: Breach of contract, fraud
Attorneys: Eric S. Engel, H. Kim Sim
Law Firm: Conkle, Kremer & Engel
Venue: California Superior Court, Orange County
Side:  Plaintiff
Trier of fact: Jury
Testimony Issue: Lost profits
Testimony Dates: October 4, 2011, October 6, 2011
Case Summary: In 2003, Inquest Technology and its owners allegedly promised to Peter Reilly as commissions 50% of profits from sales resulting from contacts Reilly established. Reilly was paid some commissions as agreed, but in December 2008 defendants told Reilly he would not be paid any further commissions. Reilly sued Inquest and its owners for commissions owed.
Testimony Summary: Mr. Neches testified regarding his analysis of defendants’ sales to relevant customers, which he determined totaled $6,687,748 to date.  Mr. Neches also projected that defendants’ future relevant sales through 2015 would total $9,611,913.  Mr. Neches determined defendants’ gross profit margin to be 27.5%, from which he calculated the present value of historical and future unpaid commissions due Reilly to equal $2,065,702.
Result: The jury awarded Reilly $2,065,702 in damages (the exact amount to which Mr. Neches testified). The Court found defendants’ conduct was a willful statutory violation, and applied treble damages to increase the judgment to $6,197,106, plus attorney fees and expenses.  Alter ego liability was separately found by the court as to all defendants. The Court’s judgment unanimously was affirmed by the Court of Appeal of the State of California.

Defendants Historical and Projected Future Sales to Triconex Invensys Chart

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