Curl Stahl Geis has secured a legal victory for its San Antonio client Danbury Aerospace, Inc., which was embroiled in a contract dispute with another company.
SAN ANTONIO, TEXAS, USA, December 27, 2018 /EINPresswire.com/ — The San Antonio-based law firm of Curl Stahl Geis has secured a legal victory for its client Danbury Aerospace, Inc., which was embroiled in a contract dispute with a company that acquired its assets three years ago.
Specifically, the Texas state court judge in San Antonio ruled that defendant Continental Motors, Inc. (an Alabama-based company) must transfer all remaining funds held in escrow when it made the acquisition to Danbury Aerospace, return certain documents that it had relocated to Mobile, Alabama, and pay Danbury Aerospace’s attorney’s fees.
“This was a complete legal victory for our client,” said Paul Curl of Curl Stahl Geis.
Prior to 2015, when it was acquired by Continental Motors, Danbury Aerospace manufactured, sold, and repaired aircraft engine components through its subsidiaries, which were also plaintiffs in the case. Shortly after the acquisition, Continental Motors shuttered Danbury’s former operations.
Under the terms of the acquisition, the parties established an Indemnity Escrow Fund and an Accounts Receivable Escrow Fund. According to court documents, Continental Motors paid over $2 million of the purchase price into escrow to protect it from specially defined claims and losses that might occur after the closing of the transaction, with any remaining balance to be paid to Danbury Aerospace.
These events became relevant in 2017 when a related case between the two parties settled. As part of the settlement, Continental Motors and Danbury Aerospace agreed that portions of the escrow accounts would be liquidated with money going to each party. The remaining funds were to be dispersed to Danbury Aerospace and Continental Motors by agreement, but Continental Motors then refused to even discuss such an agreement, instead making claims against the escrow funds that Danbury Aerospace thought were unjustified. The court agreed with Danbury Aerospace and ruled that it was entitled to all of the remaining funds
Ty Stoller, the President of Danbury Aerospace, said he was gratified with the outcome of the case. “We were always confident in our position, and we are glad that the court properly enforced our agreement with Continental Motors,” said Stoller.
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Source: EIN Presswire