A team of Gibson, Dunn & Crutcher lawyers from Texas secured a massive $296 million verdict for a real estate company Friday, following a 12-day trial in Arizona.
Gray Services and Gray Development Group, which develop projects for four high-end real estate sites in Phoenix and Scottsdale, alleged Florida-based ZOM Holding violated the terms of a May 2019 deal under which the parties were to work together to develop specific projects.
After ZOM terminated the contract and eventually began development on the properties through one of its affiliates, Gray Services brought claims for breach of contract and breach of the duty of good faith and fair dealing, alleging that ZOM could not circumvent its interests.
At trial, ZOM argued the contract Gray Services and Gray Development alleged it breached had been superseded by a different contract.
Gibson Dunn partner Collin Cox said it was a challenge to explain to the jury what it means to wipe away “contractual promises, and how explicit that has to be when you do that in a later document.”
After deliberating for five hours, the jury returned a $296,448,624 verdict, granting the full amount of damages Gray Services sought.
“We are disappointed by the ruling, as this was a complex business dispute and we respectfully disagree with the jury’s conclusions. We intend to appeal the ruling and remain confident that the decision will be overturned on appeal,” ZOM Holding told The Texas Lawbook in a statement.
Cox said many of the attorneys were also part of the firm’s win in North Dakota in the Greenpeace trial. In March, a nine-person jury awarded $660 million in damages to Energy Transfer for damages and defamation.
“I think we have great lawyers across the firm, of course, but there’s something special about doing [this] with all Texans, both from our Houston and Dallas offices,” Cox said.
He said each associate had a chance to speak in court.
“I think that’s all just very important to what we’re trying to do at the firm, and the kind of people we want to stay and give them experience that makes it hard for them to leave,” Cox said.
Gibson Dunn partner Sydney Scott, associates Ben Betner, Bryston Gallegos, Johanna Smith, Kylie Calabrese and Jaime Barrios also represented Gray Services.
Christopher Callahan of Fennemore Craig represented ZOM Holding.
The case is Gray Services, LLC & Gray Development Group LLC v. ZOM Holding, Inc., CV2022-010650.