Disputes and Litigation Engagement
Examples
Issue/Opportunity
Issue: A nationally-known architecture firm was sued by an investor and developer for malpractice related to two major resort hotel developments
RCS Role
Response: Assisting the Client’s attorneys, RCS conducted an in depth forensic loan analysis that proved that the investor/developer plaintiffs had received substantial financial benefits during loan restructurings that had resulted from 2008 Economic Melt-down. These benefits more than offset the late project delivery damage claims and the litigation settled immediately after delivery of RCS’ report.
Issue: The U.S. Department of Justice needed assistance in analyzing damage claims before the Federal Court of Claims, claims related to low income housing legislation and regulation and the taking of privately-owned leased residential property by the U.S. government.
Response: For six years and in six precedent setting real estate cases, RCS served as a real estate litigation consultant, providing real estate analyses and case management on valuation, damages, and project level economics.
Issue: The U.S. Department of Labor needed assistance with investigations on behalf of the Employee Benefits Security Administration. Union pension money had found its way into alleged fraudulent investment transactions.
Response: RCS performed forensic transaction analyses on a number of real estate investments and developments. All matters settled before trial with substantial benefit to the unions from insurance proceeds
Issue: The Commissioner of an Eastern US state wished to evaluate the deterioration of collateral it held associated with a failed Hawaiian insurance company.
Response: RCS provided retrospective loan underwriting and transaction investigation and uncovered criminal loan fraud. A company owned by and a captive of a substantial land developer had used “straw men” land buyers and insider loans to strip cash out of the Hawaiian insurance company.
Issue: A large East Coast family-owned development and real estate investment company was sued by a family member who alleged that an unfair profits distribution had been made to one of the other family members. Lawyers representing the disgruntled family member needed subject matter knowledge, analysis and investigation to support the plaintiff’s case.
Response: RCS examined the internal deal structures used, analyzing 30+ separate development partnerships between the family company and a sibling of the plaintiff. The engagement expanded into a multi-year litigation support project, the dispute went to trial, RCS provided expert witness testimony in court, and a multi million dollar judgement was rendered to correct the improperly allocated profits distribution.