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, Christopher Quintana, in a complex arbitration against Wellspring USA, LLC d/b/a Genesis Reference Laboratories, LLC, Phillip Freitas, Ernest Traynham, and Christopher Hansen.

In 2018, Mr. Quintana and three others, operating under Genesis, bought a laboratory in Florida. When COVID hit the United States, the lab was flooded with new business. Between 2018 and 2022, lab revenue increased by around 1,600%. Genesis used this revenue to expand. Then, in early 2022, Quintana’s partners began to divert millions in revenue and claimed to have voted him out of Genesis.

Mr. Quintana hired Burford Perry to conduct a books and records inspection. The firm quickly uncovered the revenue diversion, along with other fraudulent payments. Acting for Mr. Quintana, the firm commenced arbitration, alleging fiduciary breaches, directly and derivatively, and breach of contract. Following a rigorous arbitration process and a weeklong arbitration, the arbitrator issued a final award on April 24 in favor of Mr. Quintana on several key issues.

Key Highlights of the $7.45 million Award:

·       $4.78 million for Mr. Quintana’s ownership interest in Genesis 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 Mr. Quintana was excluded.

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

·       $1.19 million in Mr. Quintana’s attorneys’, expert witness, and arbitration expenses.

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

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