Sher Tremonte Wins Arbitration Over Termination of $175 Million Acquisition
On June 2, 2022, Sher Tremonte secured a complete arbitration victory, including an award of attorneys’ fees, on behalf of its client, an operator of nursing facilities.
Hired weeks before the scheduled hearing, Sher Tremonte defended its client against claims that it had breached a series of agreements relating to a $175 million acquisition of twelve nursing facilities in Pennsylvania. The seller alleged that Sher Tremonte’s client had improperly backed out of the deal because of unfavorable economic conditions caused by the global pandemic. Sher Tremonte’s client denied this allegation and countered that the seller had breached its representations and warranties when one of the twelve facilities was placed on a “special focus facilities” list, which subjected the facility to heightened regulation due to a history of violations.
Following an expedited hearing under the Commercial Rules of the American Arbitration Association, the arbitrator found that the seller had, in fact, breached its representations and warranties, entitling Sher Tremonte’s client to terminate the deal. The arbitrator awarded Sher Tremonte’s client the return of its multimillion-dollar deposit and directed the seller to pay attorneys’ fees and expenses.