Gaw | Poe LLP Client Ronald Barranco awarded $11.28 million in arbitration against 3D Systems Corporation for breach of contract.
San Francisco, California (PRWEB) October 26, 2015
Gaw | Poe LLP today announced that on behalf of its client Ronald Barranco, it obtained an arbitration award of $11,281,681.46 in favor of Mr. Barranco against 3D Systems Corporation and its subsidiary 3D Systems, Inc. 3D Systems is one of the world’s leading providers of three dimensional printing solutions.
Per the October 16, 2015 Modified Final Award issued by the arbitrator, Mr. Barranco initiated the arbitration in connection with 3D Systems’ acquisition of his company, a startup that had developed a piece of “plug-in” software for CAD users called “Print3D.” Once the Print3D tool was installed in the CAD program, it would allow the CAD user to obtain instant quotes for the production cost of whatever three-dimensional part the user was designing, as it was being designed. Under the terms of the acquisition agreement, 3D Systems was to launch a new “Print3D” business unit to promote the plug-in, and Mr. Barranco was to be hired as a co-manager of that new business unit. Furthermore, 3D Systems was to share with Mr. Barranco its future revenues generated by the Print3D tool, over a three-year “earnout period” following the acquisition. But 3D Systems ended up paying Mr. Barranco nothing under the earnout provision, and instead fired him, without stating any grounds for doing so, just 20 months after his employment began.
As stated in the October 16, 2015 Modified Final Award, the arbitration hearings took place on June 22-26, 2015 in Charlotte, North Carolina. Following those hearings, the arbitrator issued the Modified Final Award holding that 3D Systems had breached its obligation to support and grow the Print3D business unit, instead focusing its development efforts on another similar company that it had contemporaneously acquired. The arbitrator held that “[t]he record clearly, and by a preponderance of the evidence, demonstrates that Respondents’ actions and inactions… materially breached” its contractual obligations. The arbitrator further held that 3D Systems had breached its duty to deal with Mr. Barranco in good faith throughout the deal, observing, “[t]he list of actions and inactions of Respondents evidencing bad faith relative to Mr. Barranco and Print3D is a long one.” The arbitrator proceeded to award Mr. Barranco all of his requested damages, attorney’s fees, costs of arbitration and prejudgment interest.
“It’s not uncommon to hear about entrepreneurs who sold their company in exchange for an earnout or other deferred compensation, and were then cheated out of what they were promised. We’re glad that we were able to get justice for Mr. Barranco.” said Gaw | Poe LLP partner Mark Poe. Gaw | Poe LLP partner Randolph Gaw added, “It’s always a pleasure to help clients get what they deserve, and it’s very satisfying that the arbitrator recognized that Mr. Barranco was entitled to what 3D Systems had promised him.”
The arbitration proceeding was captioned Ronald Barranco, et al. v. 3D Systems Corp., No. 01-14-00018349 before the American Arbitration Association. The related federal court action is Barranco, et al. v. 3D Systems Corp., et al., No. 3:14-cv-188 (W.D.N.C.).
This arbitration award is just the latest win for Gaw | Poe LLP’s legal team. This summer, Gaw | Poe LLP prevailed at trial in the matter of Tierney, et al. v. Javaid, et al., No. CGC-13-531997 (San Francisco Sup. Ct.) where it successfully defended a local businessman who had been sued by a real estate developer seeking specific performance of a 10 year old option contract that would have forced the businessman to sell a $10+ million property for $3 million. Earlier this year, Gaw | Poe LLP also prevailed at trial in the matter of Diya TV, Inc. v. KAXT, LLC, No. 113-CV-245340 (Santa Clara Cty. Sup. Ct.) where it represented a television programmer that sought damages for breach of an oral contract against a television station that had pulled that programmer’s broadcasts off the air. Those interested in learning more about this action or Gaw | Poe LLP’s services may contact Mark Poe at mpoe(at)gawpoe(dot)com.
About Gaw | Poe LLP
Gaw | Poe LLP is a San Francisco Bay Area boutique law firm focusing on business and antitrust litigation. Founders Randolph Gaw and Mark Poe are classmates and graduates of Stanford Law School. Each practiced for roughly a decade with some of the largest and most prestigious law firms in the world before launching their own firm. The firm is experienced at handling disputes on behalf of a wide range of clients from small businesses to Fortune 500 companies to high net worth individuals. For more information, please visit http://www.gawpoe.com.
For the original version on PRWeb visit: http://www.prweb.com/releases/2015/10/prweb13043443.htm