Monday, 30 May 2016
Last updated 2 days ago
Jan 30 2013 | 1:13pm ET
The dispute between a pair of former hedge fund partners will continue, even after a New York appeals court found unanimously that one had improperly withheld profits from the other.
The Manhattan court found that James Melcher should be awarded damages for Brandon Fradd's withholding of the $6 million. The two ran the now-defunct Apollo Medical Partners.
A jury had ruled that Melcher had no case, because he had failed to complain about the matter while he was still employed at Apollo. The appeals court dismissed that argument, finding "no rational interpretation of the evidence supports" it.
But the court also denied Melcher's bid to hold Fradd personally liable—for now. It also called for an evidentiary hearing into allegations that Fradd forged an amendment to Apollo's profit agreement and then burned it when Melcher hired an ink expert to test it.
The appellate panel said it was "troubled" by the claim and that if it were proven true, "the court should impose a monetary sanction."
Fradd claims that the amendment was legitimate and that he burned it accidentally while making tea.