Burford Perry Attorneys Secure $7.45 Million Arbitration Award in Breach of Contract, Fiduciary Duty Dispute

Burford Perry is pleased to announce a significant victory for our client in a complex arbitration against a large laboratory and its other owners.

In 2018, our client and his three partners owned and operated a large laboratory in Florida. When COVID hit the United States, the lab was flooded with millions in new business. Between 2018 and 2022, lab revenue increased by around 1600%. Then, in early 2022, our client’s partners began diverting millions in profits to themselves without paying our client his share. Even worse, in violation of the operating agreement, they claimed they had voted him out of his ownership in the lab and refused to pay a fair price.

After a failed request to inspect the books and records, and a failed mediation required by the operating agreement, the firm commenced arbitration against the other members and the Company, alleging several claims, including direct and derivative breaches of fiduciary duty, self-dealing, breach of the duty of good faith and fair dealing, and breach of the operating agreement (including stolen membership units and profit distributions,, and misuse of Company funds). Following a contentious pre-arbitration process and a week-long final hearing, the arbitrator issued a final $7.45 million award on April 24, 2025, in favor of our client on several key issues.

Key Highlights of the $7.45 million Award:

·       $4.78 million for our client's ownership interest in the lab as of April 2022, when he was removed as a member of the company.

·       $1.14 million related to non-pro rata distributions made to the respondents from which our client was excluded.

·       $328,376 for improper payments the lab made to companies owned by the respondents.

·       $1.19 million in attorneys’ fees, expert witness. and arbitration expenses.

"This decision is a substantial victory for our client,” said Robert Burford, lead counsel in the arbitration. “We are extremely pleased with the arbitrator’s decision, which validated our client’s claims.”

After filing a state court request for confirmation of the award and entry of final judgment, the state court confirmed the award and entered final judgment in December 2025, and the parties entered into a settlement agreement.

In addition to Mr. Burford, our client was represented by Burford Perry associate Zachary Carlson.