Segal McCambridge Secures $2 Million-Plus Award for Telecommunications Client in Commercial Litigation Dispute

News

October 17, 2013

Detroit, MI – Segal McCambridge attorney Alan J. Taylor and the Sutherland Law Firm, as co-counsel, obtained a $2 million-plus award on behalf their mutual client, Avion Systems, Inc., a telecommunications service provider, in a breach of contract matter involving the creation of the first rural 4G LTE network in the United States.

In August 2011, Agri-Valley Broadband, Inc. abruptly terminated a multi-million dollar contract with Avion Systems, Inc. which was hired to provide equipment and services to create a 50-site 4G LTE data network covering Western/Northern locations in Michigan.  In October 2011, both Avion and Agri-Valley filed seven-figure claims and counter-claims with the American Arbitration Association. The ensuing seven-day arbitration hearing, which concluded on August 6, 2013, included eleven witnesses and hundreds of exhibits. Ultimately, the arbitrator fully sided with Avion Systems, Inc. on October 16, 2013, holding as follows:

    • Agri-Valley abandoned its obligations to Avion Systems long before sending its notice of termination of the contract
    • Agri-Valley materially breached its contract with Avion.

The arbitrator denied Agri-Valley’s counter-claim and awarded Avion nearly $2.2 million in damages to recover its out-of-pocket costs, its anticipated profits, and interest damages.

Mr. Taylor, a shareholder in Segal McCambridge’s Detroit office, focuses his practice on commercial litigation, the defense of professional negligence claims for lawyers and accountants, insurance defense, real estate litigation, business transactions, and defending creditor's rights. Since his admission to the Michigan bar in 1994, Mr. Taylor has diligently represented publicly-traded corporations, private companies and individuals in Michigan's District Courts, Circuit Courts, Bankruptcy Courts and Federal Courts (Eastern and Western Districts of Michigan).

Senior Associate Eric P. Conn, also in the firm’s Detroit office, assisted in Avion Systems, Inc.’s representation. Mr. Conn concentrates his practice in premises liability, negligence, and products liability. He has significant practice experience in commercial litigation and contract negotiation.