August 28, 2024
On August 26, 2024, in a case tried by Schlam Stone & Dolan LLP attorneys Samuel L. Butt and Channing J. Turner, a six-member jury in Levin v. Gugliano et ano., Index No. 650477/2017 (Sup. Ct. N.Y. Co.), found in favor of Schlam Stone’s clients, Norberto Levin and Fondo de Inversion Privado Levin Global (the “Fund”), and against defendants, Fund partners Mauricio Gugliano and Carlos Salvini, with respect to Mr. Levin’s and the Fund’s claim that defendants breached the non-compete provision of the parties’ partnership agreement. The Hon. Jennifer G. Schecter of the New York County Supreme Court, Commercial Division, presided over the five-day jury trial.
The partnership agreement, known as the Contributors Agreement, contained a non-compete provision that prohibited Fund partners from, inter alia, “initiating company operations or operating existing companies which, due to their activity, location or other characteristics, might materially influence, directly or indirectly the Fund’s revenues or costs.” It also prohibited competition against any company or entity controlled by the Fund. One such company controlled by the Fund was Levin Brazil, a firm that provided consulting services in Brazil. Over the course of the week-long trial, Schlam Stone contended that, while defendants were partners in the Fund, they breached the non-compete provision in several ways, including by Mr. Gugliano’s formation of a company known as Real Valor, which was engaged in the same consulting business as Levin Brazil. Both defendants thereafter sought office space for and solicited business, including from Levin Brazil clients, on behalf of Real Valor, and poached Levin Brazil employees. The jury found both defendants breached the non-compete provision of the Contributors Agreement.
The Contributors Agreement provided for liquidated damages in the amount of $1,000,000 against each defendant for their respective breaches.