Chain of Discount Grocery Stores
Roles
Expert Witness
Carmen Barrett
Managing Director, Other Professionals
Carmen Barrett is a seasoned financial and operational leader with more than 25 years of experience working with publicly traded and privately held companies across a variety of industries.
Alicia Moosally
Managing Director, Other Professionals
Alicia Moosally has over 20 years of experience in financial restructuring, litigation support services, financial and operational analysis, strategy, forensic accounting, and business valuation.
Suzanne Roski
Senior Managing Director | Partner, Partners
Suzanne Roski has nearly 40 years of professional experience with 25 of it providing troubled company, litigation, forensic investigation, and valuation consulting.
- Provided rebuttal report and testified during deposition
- Client granted favorable summary judgment
Licensor of a chain of discount grocery stores brought an arbitration claim against the licensee for multiple agreement failures and the licensee served a counterclaim and engaged an expert that valued the economic damages incurred due to alleged misrepresentations. CR3 Partners was engaged by the licensor’s counsel to provide an independent analysis of marketing materials, financial data, and an opinion on the accuracy of projections, as well as to provide rebuttal report and court testimony. The arbitration panel granted summary judgement in favor of licensor.
The Situation
- Licensee purchased 26 stores from licensor of chain of discount grocery stores and entered into license and supply agreement as well as agreed to be personally responsible for licensee’s obligations to licensor
- Licensor brought arbitration claim against licensee for failure to pay for inventory, failing to transfer and pay for utility bills, and failing to repay loan from licensor; total value of claim was approximately $18MM
- Licensor served notice of termination of license and supply agreements and triggered 120-day exclusive purchase option
- Licensee served counterclaim alleging misleading and fraudulent marketing materials that promised certain level of profitability that licensee could not achieve
- Licensee engaged expert that valued economic damages incurred due to alleged misrepresentation at $28MM
The Work
- Engaged by licensor’s counsel to provide independent analysis of marketing materials, financial data, and opinion on accuracy of projections
- Analyzed Confidential Information Memorandum and supporting financial forecasts and determined they were fairly and accurately calculated
- Further analyzed expert’s calculations of economic damages and developed opinion that but-for analysis used to calculate damages was flawed and poor quality of underlying data rendered it unreliable
- Provided rebuttal report and testified during deposition
The Results
- Arbitration panel granted summary judgement in favor of licensor in amount of approximately $20MM
- Judgement addressed both original claim by licensee as well as any legal and professional fees
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