Prevailing over Toyota Tsusho in Court Battle

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In a classic David versus Goliath story, TroyGould attorneys Russell Glazer and Arvin Tseng, representing  Scott Vollero, prevailed in two arbitrations and a related federal court case brought against Mr. Vollero by Toyota Tsusho America and ELVCR (an internal division of Toyota Tsusho America).

In 2011, Mr. Vollero sold the assets of his company, Autocats Inc., to ELVCR, an entity established by Toyota Tsusho America for the purpose of a joint venture between Toyota Tsusho America and Mr. Vollero.  At the outset, ELVCR began suffering significant financial losses.

In 2013, Toyota Tsusho America brought a lawsuit in federal court against Mr. Vollero, contending that he made misrepresentations and omissions to Toyota Tsusho America and was responsible for the losses ELVCR sustained.  ELVCR brought an arbitration against Scott Vollero based on the same allegations.  Mr. Vollero responded that Toyota Tsusho America’s management was using him as a scapegoat for ELVCR’s business problems that were, in fact, the result of managerial ineptness on the part of ELVCR’s Toyota Tsusho America-installed managers.

Over Toyota Tsusho America and ELVCR’s objections, the cases were referred to a consolidated arbitration, with Toyota Tsusho America’s claims against Mr. Vollero to be heard first by a panel of three arbitrators.  The arbitration panel agreed with Scott Vollero.  It ruled that Toyota Tsusho America, even though ably represented by three separate law firms and private investigators, and given two years of discovery efforts, failed to produce any evidence that Mr. Vollero caused any damage to either Toyota Tsusho America or ELVCR.  The panel ruled that ELVCR’s losses were NOT the result of actions by Mr. Vollero, but the result of actions attributable to Toyota Tsusho America managers in charge of ELVCR.

The panel’s ruling, which was adopted by the federal court, rejected all of Toyota Tsusho America’s claims against Mr. Vollero.  In light of the ruling in favor of Mr. Vollero, ELVCR dismissed its arbitration against Mr. Vollero and his company.  For the legal team at TroyGould and Scott Vollero, these rulings were a resounding victory.

Any questions or comments regarding this matter can be directed to Russell Glazer at  rglazer@troygould.com  or Arvin Tseng at atseng@troygould.com

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