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Miami jury finds against Del Monte Fresh Produce - Contract Breach: $10,000,000 Verdict

Del Monte Fresh Produce was sued by Net Results, Inc in June of 2003. On November 3rd, 2009 a six person Jury found in favor of Net Results, Inc for $10,000,000 plus statutory interest from May 14th, 2003. At that time, the approximate value of the finding was over $15,500,000. The case included evidence of back-dating of documents by key Del Monte personnel including allegations against Del Monte CIO May Huneidi and Del Monte House Counsel Jeff Bailey, Esquire. Also Del Monte CFO testified that he did not note this pending litigation on any Del Monte SEC 10-Q since that filing. Judge Silverman heard the case in front of a six person jury. Del Monte Fresh Produce, N.A. has North Amercian Revenues of about $3.2 billion dollars and is owned by Del Monte worldwide which as revenues of over $30 billion dollars

Net Results, Inc is a small Telecommunications Expense Management Company which was retained by Del Monte in July 2002 in order to affect Telecom, Web; MIS spend reduction, profit improvement and network optimization strategies. Net Results spent over ten months performing services which would result in Del Monte saving well over $50,000,000 over a four year period, world wide including cost recoveries, new technology migration and other services. Del Monte began paying success fees to Net Results in 2003 during the contract period and then after the contract auto renewal date, the evidence presented alleged that Del Monte back dated a cancellation notice to Net Results and wrongfully terminated the contract. About the same time, Del Monte peremptorily canceled Net Result’s letters of agency with Telecom Carriers which prevented Net Results from completing its work.

Direct testimony from former Del Monte employees and written evidence now a part of the case transcript alleged that the CIO of Del Monte, Ms. May Huneidi and Del Monte House Counsel, Jeff Bailey, Esquire were a knowing part of the back dating effort which was designed to prevent Net Results from being properly paid under the contract. In its pleadings, Net Results did not allege fraud. The Net Results damages model ranged from approximately $1,600,000 to $22,000,000 and the jury found for Net Results, Inc in the amount of $10,000,000.

Net Results, Inc. was represented by Thomas Plofchan, Esquire of Sterling Virginia together with local counsel Robert Frankel, Esquire of Miami Florida. Del Monte was represented by George Minski, Esquire (Roth, Roussou and Katsman) and for the trial by Daniel Mena, Esquire of Avila, Rodrigues, Hernadez, Mena and Ferri, LLP of Miami, Florida.


Publication date: 12/3/2009

 


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