On Tuesday November 14, 2006, lawyers from the law firm of Cuccinelli & Day, PLLC obtained a judgment on behalf of their client, IBA Molecular North America, Inc. for more than $600,000 against Defendant New York Medscan.  The legal team, led by Ken Cuccinelli, II, presented the case in the U. S. District Court for the Southern District of New York in Manhattan before the honorable Judge Richard C. Casey.  The jury trial in the matter lasted into a second week, but the jury returned a verdict after less than one day of deliberations in this complex contract case.

The case involved a commercial dispute over the payment for radioactive pharmaceuticals used for medical imaging.  IBA Molecular manufactures and sells such radiopharmaceuticals.  New York Medscan ordered radiopharmaceuticals on a daily basis over the course of two years.  A dispute arose during the course of the relationship regarding the price of the drugs.  New York Medscan failed to make payments for over six months, and IBA Molecular brought this lawsuit to recover money for goods sold and delivered.  Counsel for New York Medscan raised numerous arguments questioning the enforceability of the contracts between the parties.  Cuccinelli noted that the most difficult aspect of the case was overcoming a clause in one of the contracts that stated that the contract was not binding.  “It took a great deal of very reliable evidence to build a case for our client that the ‘non-binding clause’ should be disregarded by the jury, but after making the case that the parties had acted as if the contract was binding, the jury found that the parties intended that the contract in fact be binding.  Also critical to our case was our ability to discredit the evidence put in by the other side.”

Despite the Defendant’s arguments, Mr. Cuccinelli succeeded in convincing the jury that the two contracts between the parties were in full force and effect during the course of the relationship.  The resulting verdict of over $600,000 is the principal of the amounts due and owing under the contracts.  The jury determined that interest and attorneys fees should also be awarded to IBA under the contracts.  Judge Casey will make final determinations regarding these items, and the final award is expected to be in excess of $800,000.

Assisting Mr. Cuccinelli on the matter was Paul A. Prados, an associate with Cuccinelli & Day, PLLC, and local counsel was Sean M. Maher of Wahid, Vizcaino & Maher. 

For further information please contact Kenneth T. Cuccinelli, member of Cuccinelli & Day PLLC at 703-268-5600.

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