SANTA CLARA—On June 10, 2010, the Santa Clara Superior Court entered judgment in favor of JMBM client, venture capital fund TAT Capital Partners, Ltd., for more than $4.5 million on a breach of contract claim against embedded semiconductor corporation ZF Micro Solutions and more than $9.2 million on fraudulent transfer claims against 22 individuals. JMBM Litigator Matthew S. Kenefick represented TAT Capital Partners. TAT was referred to JMBM by a Swiss law firm which participates with JMBM in Interlaw, Ltd., an international network organization of law firms.
ZF Micro Solutions agreed to pay TAT Capital Partners a percentage of the results of a pending lawsuit against a semiconductor foundry. When that case settled for $20 million, however, ZF Micro Solutions failed to honor its contractual obligations to TAT Capital Partners, distributing much of the proceeds to the CEO David Feldman, his friends, family, and business acquaintances.
The protracted lawsuit was first filed in February 2005. Trial proceedings commenced in January 2010, and the case was tried in 3 phases. The first phase was before the Court, which found that TAT Capital Partners had an enforceable contract with ZF Micro Solutions, as well as the terms of that contract. The second and third phases were tried to a jury, lasting 30 trial days. The jury found that ZF Micro Solutions had breached its contractual obligations to TAT Capital Partners, and returned a verdict finding that ZF Micro Solutions had fraudulently transferred the National Semiconductor lawsuit proceeds to avoid paying the money it owed to TAT Capital Partners.