Cannabis Class Action Lawsuit

Tauler Smith LLP Successfully Defends THC Potency Class Action

Cannabis Class Action Lawsuit

A California court granted Tauler Smith LLP’s motion to dismiss without leave to amend in a deceptive pricing class action alleging mislabeling of THC potency. The plaintiffs specifically alleged that the cannabinoid content in the defendant’s infused joints did not match what was on label. Tauler Smith’s skilled Los Angeles class action defense attorneys filed a demurrer to the class action based on the discrepancy between the plaintiffs’ purchases and the potency tests that formed the basis of plaintiffs’ claims.

To learn more about Tauler Smith’s latest legal victory, keep reading this blog.

California Consumer Laws on Cannabis Advertising and THC Content

Recreational marijuana is a multi-billion-dollar business in the states where it is legal, which includes California. In fact, it is estimated that California is the largest cannabis market in the world. Although there are no clear federal regulations of cannabis sales, California agencies do regulate marijuana product sales within the state. For example, the California Department of Cannabis Control allows just a 10% margin of error for THC content listed on product packaging and labels. If the THC potency amount listed on the package is not close enough to the THC potency amount of the actual product, then a court may find that the company selling the products engaged in false advertising.

One reason that cannabis product labels may promise higher potency is that consumers are typically willing to pay more for weed with a stronger concentration of THC, which stands for Delta-9-tetrahydrocannabinol. Marijuana with a higher percentage of THC can deliver a more euphoric “high” for users.

Class Action Lawsuit: Ayala v. Central Coast Agriculture

Central Coast Agriculture is a California-based progressive farm that focuses on sustainability. The company is also a licensed cannabis cultivator, and some of its products are sold under the Raw Garden brand name. According to the original complaint against Central Coast Agriculture, the consumer-plaintiffs purchased two products: a Raw Garden Infused Joints three-pack in the “Sunset Cookies” strain, and Raw Garden Infused Joints in the “Caribbean Slurm” strain. The plaintiffs alleged that the marijuana products were mislabeled because the amount of THC contained in the products was substantially lower than the amount stated on the packaging: 25 percent THC potency versus 44 percent THC potency.

The plaintiffs in Ayala et al. v. Central Coast Agriculture, Inc. filed a class action lawsuit under a number of consumer protection statutes, including the California Consumers Legal Remedies Act (CLRA), the California Unfair Competition Law (UCL), and the California False Advertising Law. The case was heard in the Superior Court of California, County of Santa Clara, and the Honorable Theodore C. Zayner ruled on the litigants’ pre-trial motions.

Tauler Smith LLP Wins Defense Demurrer in Class Action Lawsuit

A demurrer is a legal challenge to a specific claim made in court, much like a motion to dismiss in federal court. When determining whether to grant a demurrer, courts will typically assume that all the facts alleged in the pleading are true, no matter how improbable they might be. If the plaintiff’s case is still unlikely to succeed even under these circumstances, then the motion for demurrer may be granted by the court.

The defendant in Ayala v. Central Coast Agriculture was represented by Los Angeles law firm Tauler Smith LLP. Our class action defense attorneys demurred to all causes of action in the case because the plaintiffs failed to allege sufficient facts. Specifically, the defense attorneys objected because the plaintiffs were unable to sufficiently demonstrate that the marijuana products purchased actually contained less THC than the amount listed on the product labels.

California Class Action Defense Lawyers Win THC Potency Case

The Santa Clara Superior Court sustained defense counsel’s demurrers on every cause of action in the case, which represented another huge pre-trial victory for the Tauler Smith LLP law firm. Moreover, the court held that the legal arguments were so overwhelmingly in favor of the defendant that the plaintiffs should have no leave to amend their complaint. In other words, the plaintiffs’ complaint was dismissed entirely.

In its ruling, the court held that the plaintiffs’ class action complaint relied on several faulty assumptions about the products they purchased, as well as the lab results cited in the lawsuit:

  1. Testing was done too late. The court noted that the THC lab tests were conducted roughly two (2) months after the original purchases, which cast serious doubt on how relevant the tests might be in the case. The court further noted that there was nothing in the plaintiffs’ lawsuit about when the joints tested by the WeedWeek researchers were produced or sold. This meant that the plaintiffs had no way of knowing how long the products were on the shelves before being tested.
  2. Not the same products. The court also said that the plaintiffs failed to show that the joints tested by WeedWeek were the same as the products at issue in the lawsuit. There was no evidence that any lab tests were conducted on the particular “Sunset Cookies” strain of marijuana purchased by one of the plaintiffs. (The plaintiffs suggested that a “Fire Walker” THC product tested by researchers was “substantially similar” to the “Sunset Cookies” strain, but the court rejected this argument.) Beyond that, only a single pre-rolled joint of the “Caribbean Slurm” strain was tested, which was an insufficient analog of the particular product purchased by the other plaintiff. Even the WeedWeek article authors characterized their testing as an “imperfect experiment” with conclusions that do not necessarily apply to any individual brand, company, or product.
  3. No information on product labeling. The court stated that there was zero information about the labelling of the products tested by the lab researchers and cited by the plaintiffs. This meant that the plaintiffs failed to prove that the THC amounts listed on the packages they purchased were the same as the THC amounts listed on the packages of the products being tested.
  4. Failed to account for testing variables. The court noted other problems with the laboratory test results referenced by the plaintiff in their lawsuit, including the failure of the testers to account for significant variables. For example, there was no information about the products’ temperature exposure, the potential for testers’ bias, or the possibility of human error.
  5. No injury or harm suffered by plaintiffs. The court found that since the plaintiffs failed to show that the marijuana products purchased actually contained less THC than was listed on the product labels, they could not establish that they sustained any injury or damage as a result of their purchases.

The Santa Clara Superior Court held that there was no clear connection between the lab testing results and the plaintiffs’ actual purchases. The testing results could not be applied to the Raw Garden marijuana joints purchased by the plaintiffs because the tests were conducted on different products at different times by different entities using different methods for different purposes. This was a clear and decisive victory for both the defendant and the Tauler Smith LLP litigation team. The legal win was even more impressive because the consumer protection statutes relied on by the plaintiffs tend to be interpreted broadly by California courts and often in favor of plaintiffs.

You Need to Hire the Right Lawyer for Your Consumer Class Action Defense

When ruling on the demurrer in Ayala et al. v. Central Coast Agriculture, Inc., the court concluded that the lab tests relied on by the plaintiffs were insufficient to draw an inference that the products at issue were inaccurately labeled. This was in stark contrast to the ruling in another false advertising case.

Two other consumers recently sued a different California marijuana company, DreamFields Brands, Inc. That class action complaint, which was filed in Los Angeles Superior Court, alleged similar facts: that the plaintiffs purchased pre-rolled joints containing a lower percentage of THC than declared on the product packaging. Additionally, the class action lawsuit cited the same independent lab tests performed by WeedWeek. The defendant in that lawsuit was represented by a different law firm, and those lawyers were unsuccessful in getting the case dismissed.

The dissimilar results in these cases should make one thing abundantly clear: hiring the right lawyer to represent you in your class action defense could be the difference between winning and losing.

Contact the California Class Action Defense Lawyers at Tauler Smith LLP

Class action lawsuits filed in California courts are notoriously complicated, particularly when they involve consumer protection claims. That’s why it is imperative that defendants in these cases be represented by the experienced California class action defense lawyers at Tauler Smith LLP. Our litigation team has extensive experience representing defendants in false advertising cases, including both private civil actions and class actions.

Call or email us today for a free initial consultation.

Tauler Smith Wins Terminating Sanctions Motion

Tauler Smith Wins Motion for Terminating Sanctions

Tauler Smith Wins Terminating Sanctions Motion

In a recent employment law matter filed in Los Angeles, Tauler Smith LLP won a motion for terminating sanctions. Los Angeles litigation attorney Wendy Miele represented a media production company that was being sued by a former contractor who worked as a personal assistant for the company. When the plaintiff refused to respond to discovery requests and failed to comply with multiple court orders, our California civil litigators sought an order granting case-terminating sanctions against the plaintiff. Although courts are typically reluctant to approve motions that effectively end a case, the LA County Superior Court judge granted the motion for terminating sanctions and dismissed the plaintiff’s complaint. This was a major success for attorney Wendy Miele and the rest of the Tauler Smith litigation team.

For additional information about Tauler Smith LLP’s latest legal victory, keep reading.

Los Angeles Employment Lawyers Successfully Represent Company in Misclassification Case

Los Angeles litigator Wendy Miele represented an entertainment production company in an employment law matter. A former personal assistant for the company filed a civil suit in the Los Angeles County Superior Court alleging that she had been misclassified as an independent contractor instead of as an employee. This is an important distinction because California employment law imposes different requirements on employers based on the classification of workers. The worker’s lawsuit alleged that the company violated the California Labor Code, which protects wage earners and regulates their wages, hours, and other conditions of employment. The lawsuit also argued that she was entitled to recovery of attorney’s fees because the alleged misclassification constituted a violation of the unlawful prong of California’s Unfair Competition Law (UCL), which explicitly prohibits any “unlawful, unfair or fraudulent business act or practice.”

Employment cases involving allegations of wage and hour violations are notoriously difficult to win on the defense side, especially at the pre-trial stage. That’s what makes this legal victory particularly noteworthy. In fact, the Tauler Smith LLP legal team has successfully defended three (3) of these cases so far this year. Our experienced California employment defense attorneys have also secured decisive victories for summary judgment in employment law disputes involving qui tam whistleblower claims, allegations of workplace retaliation, and allegations of wrongful termination.

Discovery Misconduct & Terminating Sanctions

The ex-worker in this case was required to produce certain documents in advance of trial, but the court had to intervene because she abused the discovery process by not turning over the requested evidence to opposing counsel. When the plaintiff committed discovery misconduct by continuing to use stall tactics and ultimately failing to provide the necessary discovery evidence in a timely manner as ordered by the court, the California employment attorneys at Tauler Smith LLP took aggressive action by filing a motion for terminating sanctions.

Other types of sanctions that the court could have imposed against the plaintiff for withholding information included issue sanctions, discovery sanctions, evidence sanctions, and contempt sanctions.

Los Angeles Civil Litigation Attorneys Win Motion for Terminating Sanctions

After hearing arguments from both sides, the Los Angeles County Superior Court judge granted the motion. The court found that the plaintiff willfully refused to comply with Los Angeles Superior Court Local Rule 3.25, which deals with the case management conference and the settlement conference. The rule stipulates that counsel must serve and file lists of exhibits to be presented at trial, and that this must be done at least five (5) days prior to a final status conference. Failure to comply with Local Rule 3.25 can prompt the court to impose terminating sanctions, which is what happened in this case.

In this recent California employment law matter, the plaintiff failed to produce documents and did not respond adequately to discovery requests. This chronic pattern of delay is why the judge ultimately granted attorney Wendy Miele’s motion for terminating sanctions against the plaintiff. The end result of the Tauler Smith legal team’s aggressive representation of their client is that the opposing party’s complaint has been dismissed with prejudice. This was another successful outcome for Tauler Smith LLP.

After the ruling, Wendy Miele commented on the “salacious” nature of the case. Miele said, “There was a lot of inflammatory mudslinging of a personal nature by the opposing party against Tauler Smith’s client. We seized on the tactical strategy of terminating sanctions, which a court rarely grants but which were appropriate in this case. It was a very satisfying win for our client.

Contact Tauler Smith LLP Today for Legal Help with Your California Employment Claim

The litigation attorneys at Tauler Smith LLP represent both plaintiffs and defendants in California employment claims. Call 310-590-3927 or send an email to schedule a free consultation with one of our experienced litigators.

Federal Trial in St. Louis Missouri

Tauler Smith Wins Federal Bench Trial for Insurance Consumer

Federal Trial in St. Louis Missouri

The insurance claim lawyers at Tauler Smith LLP recently won a major trial on behalf of a food & beverage manufacturer in a federal court in St. Louis, Missouri. The litigation began in a California courtroom with a business dispute over the manufacture of protein bars. Later, several of the parties in that case were also involved in insurance litigation heard by a U.S. District Court. Now, the judge has issued a ruling, with Tauler Smith winning a federal bench trial for their insurance consumer client.

The federal court’s decision can be read here. To learn more about Tauler Smith’s victory in the insurance claim lawsuit, keep reading this blog.

California Nutritional Supplement Lawyers Represent Food Manufacturer in Defective Protein Bar Lawsuit

One of the defendants in the nutritional supplement lawsuit was Eagle Mist Corporation, which does business as Osagai International and which is run by Kevin Laughlin. Eagle Mist is a company that invents and formulates functional foods, such as protein shakes and nutrition bars. They also provide other manufacturers with the technological ingredients they need for foods, beverages, and personal care products.

Nutritional Supplement Agreement

Eagle Mist entered into an agreement to supply ingredients to Sapphire Bakery, which would use the ingredients to reformulate and manufacture 13 types of nutritional protein bars. Sapphire then supplied the nutrition bars to Defense Nutrition, which finally supplied the bars to Julian Bakery.

Nutritional Supplement Dispute

Julian Bakery, the company that ultimately received delivery of the protein bars, alleged that the bars were defective due to the other companies modifying the formula of the bars, in addition to using certain processing agents during manufacturing. Julian Bakery sued Eagle Mist and Sapphire for breach of contract, damages related to defective goods, negligence, breach of warranty, unfair business practices, fraud, negligent misrepresentation, and promissory estoppel.

The lawsuit was filed in the Los Angeles County Superior Court, and the complex multi-party litigation included cross-complaints between seven (7) parties that all had a connection to the business dispute. Los Angeles nutritional supplement attorney Robert Tauler represented Eagle Mist in the California litigation, and successfully defeated three successive motions for summary adjudication in the case.

Insurance Coverage Dispute in California Food Supplement Case

Before starting production on the nutrition bars that were to eventually be delivered to Julian Bakery, Eagle Mist needed to get insurance coverage. At the time, Sapphire Bakery had a commercial general liability policy of insurance issued by Ohio Security Insurance Company. That policy called for Ohio Security to cover any legal expenses that Sapphire might one day become obligated to pay as damages in a lawsuit if sued. Since Sapphire’s insurance policy with Ohio Security allowed for the “named insured” to extend coverage to another company as an “additional insured,” Sapphire asked Ohio Security’s insurance broker to include Eagle Mist in its policy. The insurance broker then provided a certificate of liability insurance to Eagle Mist.

The insurance coverage became extremely important later when there was a business dispute over the manufacture of the nutrition bars. Sapphire Bakery’s insurance policy with Ohio Security meant that the insurance company would pay for Sapphire’s legal defense in the nutritional supplement litigation. The insurance company also agreed to pay for Eagle Mist’s legal defense in the civil suit because Eagle Mist was on the policy as an additional insured.

Texas Consumer Protection Attorney Camrie Ventry Wins Insurance Claim Litigation in U.S. District Court

The plaintiffs in the insurance claim litigation were Ohio Security Insurance Company and Ohio Casualty Insurance Company. The parent company of Ohio Security and Casualty is Liberty Mutual Insurance. Ohio Security and Liberty Mutual paid for Eagle Mist’s legal defense in the California nutritional supplement case. Later, the insurance companies argued at trial that Eagle Mist should be ordered to pay back their legal defense costs because they were never supposed to be covered under the insurance policy.

Dallas consumer protection attorney Camrie Ventry of Tauler Smith LLP represented Eagle Mist in the insurance coverage lawsuit. The case was heard by the United States District Court for the Eastern District of Missouri, with the court holding a one-day bench trial and issuing a memorandum opinion on December 16, 2022. The court was tasked with determining whether Ohio Security Insurance Company did, in fact, have a legal obligation to defend Eagle Mist under the terms of its insurance policy, as well as whether Ohio Security was entitled to reimbursement of the legal defense costs that they provided to Eagle Mist.

Federal Court Rules That Insurance Company Unreasonably Delayed Its Coverage Decision

Ohio Security’s argument at trial was that because Eagle Mist was never covered under the insurance policy, the insurance provider was entitled to recover all expenses it paid for Eagle Mist’s legal defense. The U.S. District Court rejected this argument and found that, under the circumstances, it was justified for Eagle Mist to retain the benefits of the legal expenses paid by the insurance company. Accordingly, the court entered judgment in favor of the Tauler Smith LLP client.

The court cited four main reasons for its ruling in favor of Eagle Mist and against the insurance company:

  1. Ohio Security voluntarily assumed the defense of Eagle Mist in the nutritional supplement lawsuit.
  2. Ohio Security had ongoing knowledge that Eagle Mist was not actually covered under the insurance policy.
  3. Ohio Security continuously paid the defense costs of Eagle Mist in the nutritional supplement lawsuit.
  4. Ohio Security unreasonably delayed for three (3) years before finally notifying Eagle Mist that they were not covered under the policy.

#1 – Insurance Company Agreed to Extend Policy Benefits

One of the benefits of Ohio Security’s insurance policy with Sapphire Bakery (and with Eagle Mist) was that Ohio Security agreed to pay all legal defense costs if there was a lawsuit brought by a third party.

As soon as the defective protein bars lawsuit was filed, Kevin Laughlin and Eagle Mist contacted Ohio Security Insurance Company to confirm that Eagle Mist was covered under the insurance policy. The U.S. District Court said that Eagle Mist had a good faith basis to believe that they were covered under the insurance policy. Kevin Laughlin communicated both verbally and in writing with Ohio Security to confirm that Eagle Mist was an additional insured under the policy, and he did the same with Sapphire Bakery. Moreover, the court found, Laughlin reasonably believed that the Certificate of Insurance issued by the insurance broker explicitly conferred coverage.

#2 – Insurance Company Knew the Policy Was Invalid

Shortly after the supplement civil suit was filed, the insurance company conducted its own investigation to verify whether Eagle Mist qualified as an additional insured under the insurance policy. During this investigation, Eagle Mist provided Ohio Security with email communications, purchase orders, and contracts.

According to the U.S. District Court, Ohio Security knew for several years that Eagle Mist was not actually covered under the insurance policy. But rather than acting quickly to provide notice, the insurance company delayed for three (3) years before finally informing Eagle Mist at a time when it would be most inconvenient for the food & beverage ingredient supplier.

#3 – Insurance Company Continued to Pay Legal Bills

After the investigation, Ohio Security still agreed to cover Eagle Mist’s legal fees for the nutritional supplement lawsuit. For the next three (3) years, the insurance company paid all of Eagle Mist’s legal bills in the case. During this time, Ohio Security made no statements to indicate that Eagle Mist was not covered under the insurance policy, nor did they provide notice to Eagle Mist that the food and beverage company was not covered under the insurance policy. It was only when the lawsuit was set to start trial that Ohio Security suddenly revealed that Eagle Mist never should have been covered under the policy. Ohio Security withdrew their defense, stopped paying Eagle Mist’s legal bills, and demanded that Eagle Mist repay nearly $1 million in defense costs already paid.

#4 – Insurance Company Delayed Its Coverage Decision

Although Ohio Security assumed the defense of Eagle Mist in the case and agreed to cover all legal costs, the insurance company argued that they had explicitly reserved the right to opt out of the arrangement. The court found this argument unpersuasive because the insurance company “essentially buried their head in the sand,” only to later “ask the Court to claw back funds they voluntarily paid over a span of years without producing any evidence that Defendants acted unjustly or that a three-year delay in asserting their coverage position was justified or reasonable.”

The insurance company knew at the start of the California nutritional supplement litigation that Eagle Mist was not supposed to be covered under the policy, but nevertheless continued to pay all legal costs while telling Eagle Mist that there were no issues. Then, after delaying for several years, the insurance company suddenly informed Eagle Mist that they were not covered under the policy. This sudden change in coverage came just one month before trial in the supplement lawsuit, when Eagle Mist would be most vulnerable.

The insurance company tried to justify its decision to withdraw coverage by pointing to a single, vague sentence about “reservation of rights” buried in a 25-page boilerplate letter. The court rejected this argument by noting that “a single mention in a twenty-five-plus-page boilerplate reservation of rights letter, without any further action by Plaintiffs for three years, was insufficient to put Defendants on notice they might not be covered under the Policy.”

Tauler Smith Insurance Litigation Team Represents Businesses & Consumers in California, Texas, and Throughout the U.S.

The Tauler Smith consumer protection & insurance litigation team is proud of its strong track record in insurance claim cases in state courts across California and Texas, as well as in federal courtrooms. Insurance companies must be held accountable when they attempt to take advantage of customers, which is why Camrie Ventry and our Texas litigators always fight so hard for clients in these cases.

After successfully defending Eagle Mist against Ohio Security and Liberty Mutual, Ms. Ventry called it “a great victory” for businesses and individuals who are unfairly forced to pursue the insurance benefits to which they are entitled. Ms. Ventry added, “This ruling shows that insurance companies cannot overreach by demanding to recover an exorbitant amount of money from the very people they are charged with protecting. The court got it right.”

Contact the California and Texas Insurance Claim Lawyers at Tauler Smith LLP

The attorneys at Tauler Smith LLP represent businesses and individuals in a range of practice areas, including dietary supplement lawsuits, consumer protection litigation, and insurance litigation. Call us today or send an email to schedule a free initial consultation about your case.

TruConnect Summary Judgment

Firm Wins Summary Judgment in Qui Tam Employment Claim

TruConnect Summary Judgment

The California employment defense attorneys at Tauler Smith LLP recently served as co-counsel with Greenberg Traurig to represent TruConnect in a retaliation and wrongful termination case. The firm secured a decisive victory in the case by persuading a U.S. District Court to grant a motion for summary judgment. This means that the workplace retaliation & wrongful termination claims were thrown out at the summary judgment stage without the need for oral argument.

The court’s decision can be read in its entirety here. To learn more about Tauler Smith’s victory in the qui tam employment claim, keep reading this blog.

Los Angeles Employment Attorney Robert Tauler Serves as Co-Counsel for TruConnect

TruConnect Communications, Inc. is a wireless and telecommunications company that provides cell phone service and mobile data plans in the United States, including a partnership with the federal government on the Lifeline Program that subsidizes low-income families with free wireless service. Los Angeles employment attorney Robert Tauler of Tauler Smith LLP worked with the lawyers at Greenberg Traurig to represent TruConnect at several different stages of a qui tam employment retaliation action.

The legal action began when two former employees of Sage Telecom, Inc. filed a qui tam whistleblower claim with the federal government after their positions at the company were eliminated due to significant market contractions. Attorney Robert Tauler was initially hired to defend two of TruConnect’s individual CEOs against the ex-employees’ allegations of qui tam whistleblower retaliation, and he successfully got that part of the case dismissed within a few months. Mr. Tauler was subsequently brought on as co-counsel in the larger employment action involving TruConnect, and now that case has also concluded with Mr. Tauler helping to win a court ruling on behalf of the telecom company.

District Court Grants Motion for Summary Judgment in California False Claims Act Case

The employment retaliation case was heard in the United States District Court for the Central District of California. Despite having already lost their qui tam whistleblower claim involving TruConnect, the former employees still argued that they were entitled to damages for retaliation and wrongful termination. These claims were filed under three statutes:

  1. False Claims Act (alleging retaliation)
  2. California False Claims Act (alleging retaliation)
  3. California Labor Code (alleging wrongful termination)

On June 21, 2022, U.S. District Court Judge Philip S. Gutierrez granted a motion for summary judgment that effectively ended the case by dismissing all of the plaintiffs’ claims of retaliation and wrongful termination. The court stated that TruConnect was entitled to judgment “as a matter of law,” which meant that there was no need to proceed to trial.

Los Angeles Litigator Robert Tauler Wins Cases for Clients in California State and Federal Courts

The TruConnect qui tam retaliation case represents another huge victory for Tauler Smith LLP. Attorney Robert Tauler and the other skilled members of the firm’s litigation team have earned the respect of their peers in the legal community, including judges, opposing attorneys, and legal experts. Whether it’s an employment matter, an intellectual property claim, or a business dispute, our lawyers always prepare every case with the expectation that it will go to trial. This gives us a significant advantage during the pre-trial stages, and it puts our clients in the best possible position to win.

Contact the California Employment Defense Attorneys at Tauler Smith LLP

The attorneys at Tauler Smith LLP have extensive experience handling California employment claims. We represent both plaintiffs and defendants, and our litigators know how to file successful motions for summary judgment in federal and state courts. If you are involved in litigation, the Tauler Smith LLP legal team can help you. Call 310-590-3927 or fill out the online contact form to schedule a free consultation.

PPE Fraud Lawyer

Tauler Smith Obtains Judgment for Fraud Against PPE Scam

The California business fraud lawyers at Tauler Smith LLP recently helped a client obtain a judgment for fraud against a PPE scam. After a two-day bench trial, a U.S. District Court granted 100% of the compensatory damages sought by plaintiff Solmark International in the case.

PPE Fraud Lawyer

L.A. Law Firm Tauler Smith LLP Secures Victory for Client in PPE Fraud Case

 

On February 4, 2022, federal judge Hon. Stanley Blumenfeld, Jr. for the United States District Court for the Central District of California entered Judgment for Fraud on behalf of Tauler Smith client Solmark International against PPE scammers.

Solmark International is a major supplier of personal protective equipment to companies in the United States. The defendants in the case were PPE scammers who had engaged in a scheme to sell non-existent PPE (personal protective equipment) to national distributors like Solmark. The PPE fraud scheme began with the defendants falsely representing that they had acquired millions of masks to service Solmark International’s clients who were looking to return to work more safely during the COVID-19 pandemic. Once the defendants received a bank wire transfer for the PPE products, they effectively vanished. This resulted in a series of defaults from the defendants.

Solmark International then filed suit in 2020 with predecessor counsel, and the case was scheduled for trial in late-2021. Los Angeles law firm Tauler Smith LLP ultimately helped the plaintiff secure a favorable judgment and recover significant compensation.

Federal Court Issues Final Judgment in Favor of Solmark International

A final judgment was issued by United States District Judge Stanley Blumenfeld, Jr. on February 4, 2022. The specifics of the federal court’s ruling were as follows:

  • Compensatory Damages: The defendants were ordered to pay plaintiff Solmark International the sum of approximately $100,000.
  • Counterclaims Dismissed: The defendants’ counterclaims against Solmark International were dismissed.

Attorney Robert Tauler Fights for Victims of Business Fraud in California

“I am very pleased our team was able to obtain a fraud judgment against dishonest people who thought only about themselves at the expense of others during such a sensitive time in our history,” said L.A. business fraud attorney Robert Tauler. “I am fortunate to have clients like Solmark International that believe justice is worth fighting for.”

Tauler Smith LLP is a law firm with a history of success in California business fraud cases. Our experienced litigators have successfully represented clients in business disputes and fraud matters in both local California courts and federal courts. We understand the nuances of this complicated area of the law, and we have the institutional expertise needed to guide you through the legal system and get you the compensation you deserve.

Contact the Los Angeles Business Fraud Lawyers at Tauler Smith LLP

If you were a victim of business fraud, corporate fraud, or consumer fraud, the litigators at Tauler Smith LLP can help you. Call 310-590-3927 or fill out the online contact form to schedule a free consultation.

Los Angeles Real Estate Lawyer

Tauler Smith LLP Wins Real Estate Dispute

Tauler Smith LLP, a Los Angeles-based law firm, recently represented a client in a real estate law matter with yet another successful outcome. The case involved a family, the Schallerts, who had been sued by a land developer that wanted a right-of-way over the family’s land for a development.

Los Angeles Real Estate Lawyer

Robert Tauler Helps Los Angeles Family Fight Developer in Court

Attorney Robert Tauler, one of the firm’s co-founders, represented the Schallert family and secured the victory for them at trial. Tauler successfully argued in the Los Angeles County Superior Court that the developer’s request for an “easement by necessity” should not be granted because there are other ways to access the developer’s property without crossing over the family’s land. The judge in the case, the Honorable Stephen P. Pfahler, agreed with Mr. Tauler and issued a ruling in favor of the family.

The case has received media coverage. To read more, including comments from the judge and attorneys, click here.

Firm Obtains Early Dismissal Copyright Infringement Claim Brought by Attorney Richard Liebowitz and Rachel Dolezal

Rachel Dolezal dismisses “selfie” copyright case against Paper Mag after legal maneuvering goes awry.

NEW YORK, N.Y. — Five years after she came to national attention for identifying as black woman while being of European ancestry and having no verifiable African ancestry, Rachel Dolezal is again at the heart of a legal controversy. This time, Dolezal filed suit for copyright infringement after Paper Magazine included Dolezal’s public Instagram post as part of their news coverage. 

Last summer, Dolezal announced on Instagram that she’s bisexual. Among the pop culture and celebrity media that covered the June 15 announcement was New York-based Paper Magazine, which published a story, including Dolezal’s Instagram selfie which was part of her announcement.

Three months later, a lawsuit filed on behalf of New York company Polaris Images accused Paper Magazine of copyright infringement based on an alleged “exclusive license” to market all images of Dolezal.

The Subject Image in the litigation.

The Sept. 3 lawsuit was filed by New York attorney Richard Liebowitz, who was recently called a “copyright troll” by a federal judge due to his prolific litigation history — filing over 1,100 copyright infringement lawsuits over the past three years .

The lawsuit against Paper Magazine sought all profits earned from publishing the photo, plus $150,000 in damages — the maximum allowed under federal law for willful infringement of a copyrighted work.

This time, however, Robert Tauler, Paper Magazine’s Los Angeles attorney, found the way to stop Liebowitz’s deluge of copyright lawsuits stemming from social media posts.

“Our team was able to find a legal loophole in Mr. Liebowitz’s modus operandi, which forced Liebowitz to backtrack and name Dolezal as the plaintiff instead of the original plaintiff, Polaris,” Tauler said. “However, plaintiff’s lawyers can’t switch horses in the middle of a copyright lawsuit, and when we challenged Mr. Liebowitz’s second attempt he was forced to dismiss the case before our motion to dismiss was even heard by the court.”

Liebowitz dropped the lawsuit on Jan. 29, and apologized to U.S. District Court Judge Katherine Polk Failla, explaining that the switch was just a misunderstanding – an explanation Tauler expects to challenge when seeking attorneys fees for his client.

“I believe the loophole we exposed can put an end to endless filing of copyright lawsuits like this one,” Tauler said. “Some copyright attorneys make a living exploiting technical aspects of the law that do not advance any of the objectives of the Copyright Act, let alone provide any benefit to society. Lawsuits like this hurt the legal profession by flooding our courts and draining the resources of legitimate businesses.”

A copy of the lawsuit and Liebowitz’s apology letter to the court can be found here.

Tauler Smith LLP Defeats Three Successive Motions for Summary Adjudication in Protein Bar Dispute

LOS ANGELES, November 10, 2019 ‑ Tauler Smith LLP has successfully defeated three motions for summary adjudication in complex multi-party litigation regarding the manufacture of protein bars. The triad of motions were brought by cross-defendants Defense Nutrition, LLC, Sapphire Bakery Co., and Bruce Olsen, Sapphire’s former CEO, against law firm client and cross-complainant Eagle Mist Corporation.

The litigation has spanned over three years and includes three cross-complaints between seven parties, all relating to business disputes surrounding the manufacture of thirteen types of nutritional protein bars. In one cross-complaint, Eagle Mist Corporation, which specializes in formulation of foods, has alleged that various entities conspired to commit fraud and breach a series of contracts culminating in the conversion of Eagle Mist Corporation’s assets.

In two separate hearings on October 1 and November 8, Los Angeles Superior Court Judge Michael Linfield denied cross-defendants’ Motion for Summary Adjudication in their entirety, allowing Eagle Mist’s claims of breach of contract, conversion, concealment, and fraudulent misrepresentation proceed to trial.

The Court rejected the arguments brought by Cross-Defendants, including that lost profits were unavailable to Eagle Mist, reasoning that the availability of lost profits “is a quintessential jury question.”

The case is set for a two-week jury trial in January, 2020. “We are very pleased that the Court has agreed that our clients’ claims should proceed to trial,” lead counsel Robert Tauler said.

Appellate court upholds multimillion-dollar verdict for collagen supplement inventor

Jury ruled that NeoCell Corp. officers conspired to dissolve the majority partner’s shares in
the Irvine supplement company’s manufacturing arm.

RIVERSIDE, Calif., April 8, 2019 — A jury’s $5.4 million verdict against an Irvine, Calif.
skincare company for trying to cheat a business partner was unanimously upheld by a
three-justice panel of the California Court of Appeal in a decision released on April 5.
Inventor Ahmad Alkayali sued NeoCell Corp. and his former business partners in 2013 after
they dissolved his 72% equity share in a collagen supplement factory without paying him or
even informing him of the move.

“I am very pleased the Court of Appeal reached the right decision and upheld the jury
verdict in all respects,” said Attorney Robert Tauler, of Los Angeles commercial litigation
firm Tauler Smith LLP. Tauler obtained the verdict in late 2015 after 14 days of trial
spanning three months. “It has been a long and difficult road to obtain this result, but the
Court’s detailed opinion makes this all the more gratifying.”

The justices upheld the Riverside County jury’s 2015 decision to award Alkayali $4.26
million in economic damages and $500,000 for emotional distress, plus $185,000 in punitive
damages against Akram Quadri, one of his former business partners.

The dispute centered around collagen supplement manufacturer Healthwise Nutraceuticals,
Inc., and sister company NeoCell, which marketed and sold the products. Alkayali owned
most of Healthwise, and the defendants owned Neocell and 28% of Healthwise. Following a
lawsuit over NeoCell, which Alkayali founded and sold, the defendants colluded to dissolve
Healthwise and transfer its assets to NeoCell without informing or compensating Alkayali.
The trial court reduced the jury verdict after trial, in portions of the final judgment that were
not part of the appeal.

The appellants unsuccessfully argued that the final judgment was not supported by
substantial evidence in various respects, including the eventual amount of damages
awarded. “We disagree with (Appellant’s) characterization of the state of the evidence,”
Justice Marsha G. Slough wrote in the April 5 decision. Justice Douglas P. Miller and Justice
Carol D. Codrington concurred.

Tauler Smith Successfully Defends Real Estate Developer in Seven Day Jury Trial

Firm Attorneys Robert Tauler and Dillon Millar successfully defended a real estate holding corporation and several individual defendants after a seven day jury trial in Los Angeles Superior Court, obtaining dismissal of 23 claims, including fraud and breach of fiduciary duty, in litigation that spanned close to three years.

The dispute arose in 2016 regarding loan agreements obtained for a property development in Los Angeles. Judge Elizabeth White presided over the seven day jury trial, dismissing claims during trial by granting Defendants’ motion for nonsuit, as well as dismissing Plaintiffs’ claim for attorneys fees.

“I could not be more pleased with our preparation and performance” said lead trial attorney Robert Tauler, “we really gave it everything we had, and I am glad things went our way.”

After submitting their case, the parties were able to resolve their remaining claims prior to receiving a final judgment, forestalling future litigation and culminating in dismissal.