Background
- Joint Venture: Started in 2000 between Madan Sharma and Musa Suleman for residential real estate development, profits split 2/3 to Sharma and 1/3 to Suleman.
- Dispute: Began in 2008, leading to Sharma’s resignation in October 2008 and his death in October 2009.
- Control: Suleman controlled financial affairs post-2008, leading to disputes over alleged overpayments and missing funds.
Legal Proceedings
- Lawsuit Initiated: 2012 by Suleman and 141 against the Estate and others, seeking over $5 million for alleged overpayments and improper retention of property sale proceeds.
- Counterclaim: By the Estate for an accounting of Joint Venture's financial affairs, damages, and set-off claims.
Trial Court Decisions
- Findings: Discrepancies in post-2008 accounting; judgment against the Estate, Meena, and Rekha for sale proceeds of River Trail property and for costs and pre-judgment interest.
- Remedies: Ordered an accounting, rejected set-off claims, held Meena and Rekha personally liable.
Appeal Court Decision
- Oppression Remedy: Upheld the trial judge’s order for an accounting.
- Set-Off Claims: Should be considered in the accounting.
- Personal Liability: Improperly pierced corporate veil for Meena and Rekha.
- Fiduciary Duty: Incorrectly found owed by River Trail Inc. to 141.
- Appeal Costs: appeal with costs to the Appellants, fixed at the agreed-on sum of $25,000, all inclusive.
Conclusion
The appeal was allowed, with significant aspects of the trial court’s decision overturned. Set-off claims will be reconsidered, and personal liabilities for Meena and Rekha were set aside. Interest and costs will be determined post-accounting.
