Defense Verdict in Riverside Business Dispute: Jury Rejects $11 Million Claim

Zero Damages Awarded in Riverside Business Dispute After Three-Week Jury Trial

At Tyler Law LLP, we recently secured a significant defense verdict in a complex business dispute tried before a jury in Riverside County. After a three-week trial, the jury rejected plaintiffs’ claims seeking more than $11 million in alleged diverted revenue and awarded zero damages.

Our client was represented by attorney Myla Razel P. Sarmiento and Partner Nathan R. Klein of Tyler Law LLP in a case involving allegations of fiduciary misconduct, fraud, and the alleged diversion of business opportunities.

The Dispute

The case arose from the breakdown of both a business and personal relationship between two co-owners of a construction company. Over several years, the parties built a successful business with ongoing projects, repeat clients, and established industry relationships.

As the evidence at trial showed, when the relationship ended, the parties agreed to wind down the company and move in separate directions. Following that decision, our client moved forward with starting a new business to continue working and earning a living.

Despite that agreement, plaintiffs later claimed that the company had not been properly dissolved and alleged that our client wrongfully diverted business opportunities, customers, and revenue to a new entity.

Plaintiffs’ Claims

At trial, plaintiffs focused heavily on a claim that more than $11 million in revenue had been diverted from the company. They argued that this amount represented business that should have remained with the original company.

The Defense

At Tyler Law LLP, we focused on the facts surrounding the parties’ agreement and the lack of reliable evidence supporting the claimed losses.

Through documentary evidence and witness testimony, we demonstrated that:

• The parties mutually agreed to shut down the company
• Customers were notified of the closure
• The transition occurred openly, not secretly
• Our client disclosed plans to start a new business
• Any subsequent work occurred after the decision to dissolve

We also challenged the foundation of the $11 million claim, showing that it was speculative and not supported by credible or provable evidence.

The Verdict

After three weeks of testimony and deliberation, the jury returned its verdict. It rejected plaintiffs’ damages claims in their entirety. The jury awarded zero damages, declining to accept the plaintiffs’ $11 million theory of loss.

Why This Case Matters

Business disputes often turn on competing narratives and disputed financial claims. This case demonstrates that:

• Large damage claims must be supported by credible, admissible evidence
• Agreements between business partners—especially regarding dissolution—carry significant weight
• A focused trial strategy can effectively dismantle unsupported financial claims

Most importantly, the verdict reinforces a key principle: even where liability is established, plaintiffs must prove actual damages. Without that proof, recovery is not warranted.

Experienced Trial Counsel in Business Disputes

At Tyler Law LLP, we represent clients in complex business litigation involving fiduciary duty, fraud, and high-exposure financial claims. Partner Nathan R. Klein and attorney Myla Razel P. Sarmiento bring strategic insight, detailed preparation, and strong courtroom advocacy to every case.

If you are facing a business dispute involving significant financial allegations, experienced counsel can make a decisive difference.