Parties: Plaintiff Gashtaseb Gholipour sued Defendant Saeid Vahid Rezaei (and Persia Bakery & Kabob) for breach of a shareholder agreement.
Key Claims: The plaintiff alleged a breach of contract after being excluded from participating in the business operations, leading to financial losses.
Key Facts
The plaintiff invested $177,130.75 to help open Persia Bakery & Kabob after acquiring a 50% share.
A Shareholders’ Agreement (S.A.) was signed in November 2016, outlining the roles and responsibilities of both parties.
The relationship deteriorated after the bakery's opening in March 2017. The plaintiff was locked out of the premises, denied access to business accounts, and excluded from operations.
The business failed in October 2017, with assets sold for $110,000. Net proceeds of $56,692 remain in trust.
Court Findings
Breach of Contract: The court found Mr. Rezaei violated the S.A. by excluding the plaintiff and failing to fulfill fiduciary duties under Section 4.2 of the agreement.
Damages: The plaintiff was awarded reliance damages of $177,130.75 (the amount invested in reliance on the contract).
Interest: Pre-judgment interest was set at 1%, totaling $12,738.86, with post-judgment interest at 4%.
Costs: The plaintiff was awarded $70,995.31 in costs.
