Commercial Litigation | Jury Verdicts & Settlements

Beachfront Resort Fraud: $46.25M Verdict for Fiduciary Breach

This complex litigation centered on the Monterey Bay Shores Resort, a 40-acre beachfront development held in trust by Security National Guaranty, Inc. (SNG) for over 25 years. The dispute erupted after SNG partnered with an investment group led by Mahender Makhijani to refinance the project. SNG alleged that once the defendants gained control, they intentionally stalled development and orchestrated a "secret" $37 million loan from Nano Banc to drain the company’s equity. Following a two-phase trial in Orange County Superior Court, the jury found that the defendants breached their fiduciary duties and engaged in a conspiracy to prioritize personal financial gains over the project's viability. While the jury rejected claims of stolen property and breach of contract, they awarded $9.25 million in compensatory damages and a staggering $37 million in punitive damages, finding the defendants acted with malice, oppression, and fraud.

Breach of Contract

Subsea Wins Contract Dispute; Jury Awards $286K Verdict

This federal commercial dispute involved a breakdown in a specialized underwater cable repair project governed by the Subsea Cable Repair Agreement. Subsea Marine Services, Inc. claimed it fulfilled its repair obligations, while SMITCOMS failed to pay for the work performed. Subsea argued it mobilized specialized vessels, crew, and equipment, yet SMITCOMS withheld payment despite receiving the benefit. SMITCOMS countered that Subsea failed to perform according to contractual standards and raised several affirmative defenses, including nonperformance, estoppel, waiver, and unclean hands. After reviewing technical evidence and contract terms, the jury returned a unanimous verdict on November 3, 2025, finding that SMITCOMS breached the agreement. The jury awarded Subsea $286,250.00 in contract damages and $3,900.00 for unjust enrichment, rejecting every defense raised. The jury also found Subsea did not breach the contract, resulting in zero recovery on SMITCOMS’s counterclaim.