Willkie Farr & Gallagher LLP
09/17/2024 | News release | Distributed by Public on 09/17/2024 15:21
Willkie Secures $5 Million Award in Investor Breach of Contract Dispute
Willkie Secures $5 Million Award in Investor Breach of Contract Dispute
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September 17, 2024
Willkie recently obtained summary judgment on behalf of client Gary Belz and secured an award of more than $5 million in an action to enforce repayment of a business investment.
In February 2022, Gary Belz invested $4.5 million in a company called Cyber 1 LLC that was styled as a promissory note and subject to explicit repayment obligations. The note was supported by a personal guarantee from two individuals - Norman Kravetz and Douglas Jacobsen. When the Defendants missed their first principal payment obligation under the note, and stopped paying the required monthly interest payments, Belz placed the note and guarantees in default. When Defendants failed to cure their default, Belz sued to enforce his rights under the contracts.
The litigation was vigorously defended. Belz initially sought and obtained a writ of attachment against all Defendants' attachable assets, including the individuals' personal assets. Belz also moved for summary judgment to enforce the breach of the various agreements. The Court granted Belz's motion for summary judgment in its entirety in July 2024, and entered judgment in his favor on September 17, awarding Belz roughly $5.25 million, continuing accrued interest and reasonable attorneys' fees.
The Willkie team was led by partner Matthew Gurvitz and associate Justin Garbacz.
In February 2022, Gary Belz invested $4.5 million in a company called Cyber 1 LLC that was styled as a promissory note and subject to explicit repayment obligations. The note was supported by a personal guarantee from two individuals - Norman Kravetz and Douglas Jacobsen. When the Defendants missed their first principal payment obligation under the note, and stopped paying the required monthly interest payments, Belz placed the note and guarantees in default. When Defendants failed to cure their default, Belz sued to enforce his rights under the contracts.
The litigation was vigorously defended. Belz initially sought and obtained a writ of attachment against all Defendants' attachable assets, including the individuals' personal assets. Belz also moved for summary judgment to enforce the breach of the various agreements. The Court granted Belz's motion for summary judgment in its entirety in July 2024, and entered judgment in his favor on September 17, awarding Belz roughly $5.25 million, continuing accrued interest and reasonable attorneys' fees.
The Willkie team was led by partner Matthew Gurvitz and associate Justin Garbacz.