A Thompson Hine trial team secured a significant victory for M&K Imports, LLC following a week-long jury trial in the U.S. District Court for the Southern District of New York. On September 4, the jury returned a verdict in M&K’s favor, finding five defendants, including three individuals, jointly and severally liable for $6.2 million in damages. The verdict followed an earlier summary judgment ruling in M&K’s favor on its breach of contract claim against one of the corporate defendants, resulting in a judgment exceeding $17.5 million against that entity.
“We are proud to have delivered this result for M&K,” said Richard De Palma, the Thompson Hine partner who led the litigation. “The jury’s verdict confirms that escrow protections mean what they say, and that individuals can be held personally accountable when those protections are disregarded. This was a true team effort, and every member of our trial team made a critical contribution.”
The case arose from a pandemic-era 2022 agreement to supply COVID-19 rapid antigen test kits to the city of New York. M&K placed a substantial deposit in escrow, to be released only after independent confirmation of shipment. The funds were instead released prematurely, without M&K’s knowledge or consent, and the test kits were never delivered.
At trial, the Thompson Hine team defeated the defendants’ central argument that M&K had known of or consented to the early release. The team also succeeded in holding three individual defendants personally liable alongside their companies, overcoming their efforts to shield themselves behind their corporate entities. The jury’s verdict provides M&K with additional avenues to recover its losses by establishing the personal liability of those individuals, jointly and severally, for the $6.2 million award.
The Thompson Hine trial team consisted of partner Richard De Palma, associates Jonathan Nussbaum, Filip Cukovic and paralegal Aisha Mian.