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Month: August, 2019

Early Sullivan Prevails on Behalf of Client My Instant Guru (“MIG”) Regarding Data Storage Master Service Agreement

After a week-long arbitration, in Arya Group vs. My Instant Guru, the Hon. Richard A. Stone (Ret.) ruled in favor of Early Sullivan client, My Instant Guru (“MIG”), in its dispute with high-end architectural firm Arya Group, which was seeking damages just south of $50 million. Scott Gizer acted as lead counsel for MIG in the arbitration.

Arya claimed that MIG, which Arya hired for networking, backup, and disaster recovery services, set up a faulty computer network and failed to maintain sufficient backups for MIG’s files. As a result, when Arya’s server crashed, Arya claims to have lost all of its data, including architectural drawings (CAD files) that would cost tens of millions of dollars to recreate. Arya alleged five claims against MIG: (1) a breach of contract claim based on MIG’s alleged failure to maintain backups; (2) a negligence claim based on MIG’s purported duty; (3) breach of fiduciary duty; (4) negligent misrepresentation; and (5) fraud.

MIG argued that it fully performed as required and that the server crash and loss of data occurred because Arya failed to heed MIG’s warnings and follow MIG’s advice. Based upon the testimony of the parties and witnesses, the documentary evidence and the arguments of counsel, the Arbitrator ruled in favor of MIG regarding Arya’s claims against it. “Arya failed to heed MIG’s explicit and repeated advice regarding the server upgrade,” the ruling reads. The arbitrator found “there were simply too many opportunities for Ayra to protect itself, or allow MIG to protect it, to permit a finding for Arya in this matter.”

Eric Early Recognized in the Los Angeles Business Journal’s 2019 “Top Litigators & Trial Lawyers”

Early Sullivan Managing Partner Eric Early has been named to the Los Angeles Business Journal’s 2019 “Top Litigators & Trial Lawyers.” LABJ noted Eric’s regular representation of Fortune 500 real estate companies and individuals. The prestigious issue also highlights Eric’s political endeavors, mentioning his 2020 run for Congress after receiving almost one million votes running for California’s Attorney General in 2018.

Please click here to see the full publication.

Eight Early Sullivan Attorneys Named Best Lawyers In America

Early Sullivan attorneys Eric Early, Bryan Sullivan, Scott Gizer, Devin McRae, Sophia Lau, Stephen Ma, Christopher Ritter, and David Giannotti have been recognized among the top lawyers in the nation in the 2020 edition of The Best Lawyers in America, one of the oldest and most distinguished guides to the legal profession.

The following attorneys earned a spot in the 2020 edition for their work in the following practice areas:

Eric Early: Commercial Litigation; Entertainment Law – Motion Pictures and Television; Entertainment Law – Music; Litigation – Real Estate

Bryan Sullivan: Commercial Transactions / UCC Law; Entertainment Law – Music

Scott Gizer: Commercial Litigation

Devin McRae: Entertainment Law – Motion Pictures and Television; Litigation – Intellectual Property

Sophia Lau: Commercial Litigation; Entertainment Law – Music; Litigation – Intellectual Property

Stephen Ma: Entertainment Law – Music

Christopher Ritter: Entertainment Law – Motion Pictures and Television; Litigation – Intellectual Property

David Gianotti: Environmental Law; Litigation – Environmental

“Best Lawyers” is one of the oldest and most respected guides to the legal industry. The selection process is based on a comprehensive peer-review process designed to capture the consensus opinion of leading lawyers about the professional abilities of their colleagues within common legal practices and geographical areas. Corporate Counsel magazine has called “The Best Lawyers in America” “the most respected referral list of attorneys in practice.”

Early Sullivan Prevails for Client Sun West in Bench Trial Over Defective Loan

Following a bench trial before the Honorable Dennis J. Landin, a statement of decision was issued in favor of Early Sullivan client Sun West regarding a defective loan it was sold by First Alliance Home Mortgage LLC (“First Alliance”). First Alliance entered into a correspondent agreement with Sun West through which First Alliance would sell loans to Sun West that Sun West would then sell on the secondary market to certain governmental entities, including Fannie Mae and Ginnie Mae. Sun West was required to repurchase the loan in question from Fannie Mae because it did not meet certain regulations relating to borrower reserves. When Sun West demanded that First Alliance repurchase this loan from Sun West, First Alliance refused to do so claiming that Sun West should have caught the borrower reserve problem before purchasing the loan because Sun West had underwritten the loan.

At the trial, First Alliance again argued Sun West was the underwriter, but the evidence at trial showed that First Alliance was the final underwriter of the loan and that Sun West only performed a more limited underwriting review. Further, the evidence established that even if Sun West personnel were engaged in duties similar to those of an underwriter, they were not given the information about the borrower’s insufficient cash reserves until after the time of closing and, thus, could not have caught the issue. Therefore, the judge ruled that First Alliance was obligated under the parties’ contract to repurchase the loan.

First Alliance further argued that Sun West did not sufficiently attempt to mitigate the damages. The court found this unpersuasive as Sun West was not obliged to sell the loan on the open market, and it made efforts to convince Fannie Mae to keep the loan and sought further documentation from First Alliance to rectify the deficiency, which was never produced. Additionally, Sun West proposed a “lender credit” to Fannie Mae to reduce the risk. Due to the reasons listed above the court ruled in Sun West’s favor stating it “did all it was required to do under the law.”

Click “Download PDF” to read order.

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