This week's roundup of civil legal filings in Nashville:
United States Bankruptcy Court
Gregory Scott Daily. Asset schedules in Chapter 11 bankruptcy case filed June 1, 4 and 9. Assets: $52.4 million. Liabilities: $7.97 million, not including the $350 million judgment handed down against Daily last month in Los Angeles Superior Court. Initial filing at this link ; amended version here .
Daily is the successful entrepreneur who filed for bankruptcy after he came out on the losing end of the jury verdict in a lawsuit brought by a would-be investor in the company Daily now heads, iPayment Inc. His listed assets include the family home at 5353 Hillsboro Road – the one that former Nashville financier Richard Osias built, with the fleur-de-lis fountain in front – which is valued at $5.9 million.
Another home is in Big Sky, Mont., on the edge of Yellowstone National Park, and is worth $10 million. Daily's investment holdings in local companies such as CapStar Bank, FaceCard and Ardent Health Services, add up to well over $10 million.
Also listed: a wine collection valued at $2 million.
William L. Norton III of Bradley Arant Boult Cummings LLP represents Daily.
United States District Court
Cummings Inc. v. BP Products North America Inc., Blair Sign Co. and Donald Devorris . Jury verdict reached June 4. Compensatory damages: $906,000. Punitive damages: $2.62 million.
Nashville-based signage manufacturer Cummings prevails after a lengthy court battle with a former subcontractor that it accused of hijacking a major customer relationship. The jury found that Blair, of Altoona, Pa., intentionally interfered with the business relationship Cummings had with energy conglomerate BP and breached a non-competition agreement. It also dismissed the claim of Blair founder and Chairman Donald Devorris that Cummings had breached a consulting agreement with him.
Devorris sued Cummings in July 2006, and Cummings sued Blair, Devorris and BP in August 2006, with the consolidated cases eventually ending up in Nashville's federal court. Cummings and BP reached a settlement in September 2007.
Plaintiff's attorneys: Bob Boston, Robb Harvey, Derek Edwards and Rhonda Kinslow of Waller Lansden Dortch & Davis. Defendant's attorneys: Tom Dement and Paul Brewer of Leitner, Williams, Dooley & Napolitan, along with attorneys from a Pennsylvania firm.
Blair reacted to the verdict with a statement expressing "shock" and adamantly denying any impropriety. "Blair is pursuing all of its post-trial options, including an appeal," the statement said.
SunTrust Bank v. James L. Shaub II and Rebecca Sullivan . Filed June 9. The bank says Shaub, majority owner and former CEO of bankrupt SouthEast Waffles LLC, depleted the company's assets for his own use and took part in a $3.7 million check-kiting scheme, plunging the company into crisis.
Sullivan was the longtime chief financial officer of the company. Shaub's attorney, David Raybin of Hollins Wagster Weatherly & Raybin, said her "fingerprints are all over" the banking irregularities.
Attorney Peter Strianse of Tune, Entrekin & White, representing Sullivan, would not comment except to say that Sullivan "has been cooperating with SunTrust Bank in its investigation."
The filing says that Shaub used company funds to cover the cost of refurbishing and maintaining his family's Belle Meade Boulevard home, as well as private school tuition, charity contributions and car payments.
"Jim Shaub has absolutely not committed any fraudulent transfers from SouthEast Waffles, and he was not involved in any check kiting scheme," Raybin said.
The bank seeks $3.7 million in damages for the check scheme, $10 million in punitive damages and an unspecified amount to cover fraudulent transfers made by Shaub. Plaintiff's attorney: Bob Goodrich, Stites & Harbison, Nashville.
Davidson County Circuit Court
BMT Associates LLC v. Gresham, Smith and Partners . Filed June 5. The owner of Belle Meade Town Center, a four-acre mixed-use retail-residential project developed by real estate entrepreneur Tony Giarratana, says well-known architectural firm Gresham Smith botched the building plans.
How badly? The complaint says the front of the yet-to-open Harris Teeter supermarket in the center "would have failed and/or collapsed, and the underground garage would have been functionally useless because the entrance beam would have been so low as to prevent cars from passing underneath," if built as drawn.
Blaming the architects for costly delays in the project, the lawsuit seeks at least $2.25 million in damages. Plaintiff's attorneys: Chris Dunn, Woody Woodruff and Rick Sanders of Waller Lansden.
Efforts to reach Gresham Smith representatives have been unsuccessful. A Harris Teeter spokesperson declined to address the controversy but said the new store will open on July 15.