Navigation Links
FDASmart Inc.’s Breach of Contract Lawsuit Against Dishman USA Survives Appeal, India-based Dishman’s New Jersey Subsidiary Legally Bound in Upcoming Trial by Jury
Date:1/16/2017

Appellate Court of New Jersey approved and released for New Jersey laws precedential publication its decision on the appeal filed by India-based Dishman Pharmaceutical & Chemical Ltd. company (DPCL) for its motion to dismiss FDASmart’s lawsuit of breach of contract against DPCL and one of its Dishman Group’s 100% wholly owned New Jersey-based subsidiary Dishman USA located in New Jersey, a co-defendant in the lawsuit. (SUPERIOR COURT OF NEW JERSEY, APPELLATE DIVISION DOCKET NO. A-2800-15T3)

The lawsuit alleges that Dishman Group entered into an exclusive agreement with FDASmart to facilitate the sale of its Shanghai, China active pharmaceutical ingredient manufacturing facility valued in the millions of US dollars, located at the Shanghai Chemical Industrial Park complex. Dishman Group is comprised of DPCL (Dishman Pharmaceuticals & Pvt. Ltd) parent company and its subsidiaries globally including the co-defendant Dishman USA.

FDASmart alleges that Dishman Group breached that contract by failing to pay for services rendered and by sabotaging FDASmart’s efforts to sell the facility and collect a potential sale success fee. FDASmart also alleges that the Dishman Group breached its covenant of good faith and fair dealing and unjustly enriched itself.

FDASmart filed its complaint and pleading December 2013 in New Jersey stating that it was owed $40,000 USD by Dishman Group after the contract was allegedly breached, with additional damages of more than $140,000 USD from unjust enrichment, and further damages of $900,000 USD from DPCL’s alleged actions in frustrating FDASmart’s China plant sales efforts with possible buyers before the disputed date of the MOU expiration.

The MOU/contract was signed by FDASmart’s CEO, Ram Balani, and Dishman Group’s Managing Director and Chairman, Mr. Janmejay (Jay) Vyas, along with a third party which DPCL unilaterally chose to terminate for its own reasons, independent of FDASmart’s involvement.

Dishman USA, the New Jersey co-defendant named in the FDASmart lawsuit, whose place of incorporation and place of business are both in the State of New Jersey, was bound by the MOU contract formation contemplated in India, and its participation in the execution of the MOU. Dishman USA is a 100% wholly owned member company of the Dishman Group of companies. Per Dishman USA’s New Jersey corporate registration, Mr. Jay Vyas, MD of Dishman Group serves as the President and sole Director & Board member of New Jersey Dishman USA.

The Appellate Court confirmed the Middlesex County Trial Court Judge Vincent Leblon’s October 28th, 2016 opinion that Dishman USA is subject to personal jurisdiction in Middlesex County Superior court, where FDASmart filed its lawsuit, where Dishman USA is deemed ‘at-home’.

The Appellate Court did not agree with the Trial Court’s finding that India-based DPCL is subject to general jurisdiction in New Jersey under the ‘alter-ego’ theory. It opined that jurisdiction on DPCL is not retained, but however remanded the case to the Trial Court for further consideration on merits with the subsidiary Dishman USA, a co-defendant in the lawsuit. The case proceeds to trial by jury in New Jersey with FDASmart’s arguments of imposing general jurisdiction on DPCL in New Jersey from an ‘agency theory’ survives, and surviving appeal since that argument was not considered nor ruled against in the Appellate decision. FDASmart will argue DPCL jurisdiction with ‘agency theory’ at trial.

Under the terms of the MOU, which DPCL’s Managing Director, Mr. Jay Vyas signed on behalf of the Dishman Group umbrella of companies (Dishman Group includes parent DPCL and its subsidiaries, including Dishman USA), the Court opined that FDASmart had stated a valid and legally actionable claim since Dishman USA was bound by the signed contract MOU.

The Appellate Court’s December 29th, 2016 approved for publication ruling opined as follows:
“In addressing Dishman USA's contention on appeal that the complaint against it should have been dismissed for a failure to state a claim, we are satisfied that the trial judge provided sufficient reasoning in his denial of the Rule 4:6-2 motion. The judge properly viewed all inferences in plaintiff's favor and found that DPCL's managing director's signature on the MOU for the contracting party Dishman Group was sufficient to glean an intent to bind all of DPCL's subsidiaries including Dishman USA.”

FDASmart will name several key officers of DPCL including Dishman Group’s MD Mr. Jay Vyas, Dishman USA senior staff in New Jersey and third parties, leads & referral sources as witnesses in its upcoming trial in New Jersey. Mr. Jay Vyas serves as Dishman USA’s President, Board of Director (Sole member) and on-record with its New Jersey filed corporate registrations as Dishman USA’s 100% share owner.

For further information on this lawsuit or to request a copy of the New Jersey Appellate Court’s December 29th, 2017 opinion approved for publication (Appellate Division) or the Trial Court’s (Law Division) opinion, please contact:

Ram Balani, CEO
FDASmart Inc.
Email: rbalani(at)fdasmart(dot)com
Phone: +1 516 515 9642     Twitter: @RJBalani

Read the full story at http://www.prweb.com/releases/2017/01/prweb13978033.htm.


'/>"/>
Source: PRWeb
Copyright©2017 Vocus, Inc.
All rights reserved


Related biology technology :

1. Genuine Bio Fuel Inc.’s Second Chance Program Proves to Be a Model for Successful Hiring in the Biodiesel Industry
2. Follow-up Tests Confirm Success of Enviro-Equipment Inc.’s Powdered Activated Carbon (PAC) CleanInject® Remediation System
3. SHAREHOLDER ALERT: Levi & Korsinsky, LLP Announces Investigation into Possible Breaches of Fiduciary Duty by the Board of PROLOR Biotech, Inc. in Connection with the Sale of the Company to OPKO Health, Inc.
4. Connecticut-Based Contract Staffing Recruiters Adds More Career Boards and Staff
5. US Radiopharmaceuticals (USR) Awards Contract to Von Gahlen International for New Technetium-99m Generator Production Line Using Low Enriched Uranium Molybdenum-99
6. Green Rust Remover Offers Complimentary Samples to Rust Contractors, My Cleaning Products Affirms It Could Cut Expenses Up to 50 Percent
7. Nanotherapeutics Awarded Defense Department Contract for Advanced Development and Manufacturing of Medical Countermeasures
8. Analysis of 2012 New Drug Application Approvals (NDAs) Shows Bio/Pharma Contract Manufacturers Treading Water
9. Sterilization Market (Medical Devices, Pharmaceutical, Healthcare, Food Applications), Equipments & Contract Services - Global Forecast To 2017
10. Pfenex Inc. Awards Glide Pharma Development Contract for a Solid Formulation of Recombinant Anthrax Vaccine
11. BioConvergence® Celebrates Seventh Anniversary as a Life Sciences Contract Service Provider
Post Your Comments:
*Name:
*Comment:
*Email:
(Date:4/24/2017)... , ... April 24, 2017 , ... ... thermal denaturation in a cellular milieu; however, the broad application of this cellular ... simple platforms with sensitive quantitative readouts. Cell-based thermal stabilization assays are valuable methods ...
(Date:4/21/2017)... ... April 21, 2017 , ... The University of Connecticut, ... funding to three startups through the UConn Innovation Fund. The $1.5 million UConn ... affiliated with UConn. , The UConn Innovation Fund provides investments of up to ...
(Date:4/21/2017)... ... April 21, 2017 , ... ... nourishing a range of emerging technology-based businesses, recently earned a $77,518 grant from ... , Founded in 2004, FITCI is Frederick’s first incubator. A non-profit corporation, ...
(Date:4/20/2017)... ... April 20, 2017 , ... USDM Life Sciences , ... sciences and healthcare industries, is pleased to announce Holger Braemer as Vice ... “USDM Europe GmbH” based in Germany. , Braemer is an integral part of ...
Breaking Biology Technology:
(Date:4/11/2017)... MELBOURNE, Florida , April 11, 2017 ... "Company"), a security technology company, announces the appointment of independent ... John Bendheim to its Board of Directors, furthering the ... ... behalf of NXT-ID, we look forward to their guidance and ...
(Date:4/5/2017)... , April 5, 2017 Today ... announcing that the server component of the HYPR platform ... for providing the end-to-end security architecture that empowers biometric ... HYPR has already secured over 15 million users ... including manufacturers of connected home product suites and physical ...
(Date:4/3/2017)... WASHINGTON , April 3, 2017 /PRNewswire-USNewswire/ ... single-cell precision engineering platform, detected a statistically ... cell product prior to treatment and objective ... highlight the potential to predict whether cancer ... prior to treatment, as well as to ...
Breaking Biology News(10 mins):