In the Law360 article, "Md. Pot Co. Evermore Faces Bid To Confirm $1.98M Award," Adam Weg discussed Greenvision LLC's arbitration victory against Evermore Cannabis Company and its effort to confirm the award in California state court. The following is an excerpt:
A California-based capital advisory firm is urging a state court to enforce a $1.98 million arbitration award it scored against Evermore Cannabis Company, which was found to have intentionally dodged fees it promised to pay the firm as part of a contract that helped the marijuana cultivator secure loans.
Greenvision LLC filed a petition Tuesday in Los Angeles Superior Court asking it to confirm the arbitration award against Baltimore-based Temescal Wellness of Maryland LLC, which does business as Evermore, according to the petition.
The dispute stems from agreements Greenvision penned with the cannabis company, whereby the firm promised to introduce Evermore to lenders in exchange for a 3% transaction fee, according to the petition. Evermore was found to have breached its contracts with Greenvision, according to a finding issued by arbitrator Christopher Keele in May that was submitted to the court with the petition.
Ultimately, Keele determined that Evermore breached the implied covenant of good faith and fair dealing and committed fraud by concealing multiple loans it secured from lenders that the cannabis company only had access to thanks to Greenvision. This included one loan worth about $15.49 million, according to the May findings.
The arbitrator determined that Greenvision was entitled to about $524,000 for the unpaid sum, almost $89,000 in interest on that, and $1.36 million in attorney fees.
Attorney fees constitute the lion's share of the award because Evermore's counsel intentionally drew out the arbitration process, said Adam M. Weg, partner at Venable LLP, which represented Greenvision.
"There were strong feelings on both sides," Weg told Law360 on Friday. "Evermore's counsel worked to delay and drive up costs. They tried to push a pennies-on-the-dollar settlement. As the final award shows, our client's claims had merit."
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