Press Release: Ishimbayev Law Firm Secures $4,885,982 Victory for Plaintiff in Breach of Contract Case
- Insights & News
- May 20, 2024
Ishimbayev Law Firm Secures $4,885,982 Victory for Plaintiff in Breach of Contract Case
Press Release
Location: Brooklyn, New York
We are pleased to announce that Ishimbayev Law Firm, P.C. has achieved a significant victory on behalf of our client, Elena Khotovitskaya, in the United States District Court for the Eastern District of New York. In the case of Elena Khotovitskaya v. Albert Shimunov and David Shimunov (18-CV-7303), the Honorable Judge Nicholas G. Garaufis granted summary judgment in favor of our client, awarding a total of $4,885,982.86.
Case Overview
Our client brought a breach of contract action against the Defendants related to promissory notes and guaranties with a principal amount of $2,000,000. These notes, executed between December 2012 and September 2014, were due for repayment by December 2015 with an interest rate of 8% per annum. Despite the clear terms of the promissory notes, the Defendants failed to repay any portion of the principal or interest.
Court Findings
The court found in favor of our client, establishing that:
- The promissory notes were valid and enforceable.
- Our client was the rightful holder of these notes.
- The Defendants defaulted on their payment obligations.
The Defendants’ argument that the transactions were investments rather than loans, and their claim of being fraudulently induced to sign the notes, were thoroughly examined and found unsubstantiated by clear and convincing evidence.
Award and Next Step
The court awarded our client $2,000,000 in principal, $2,883,034.86 in pre-judgment interest, and $2,948 in costs related to attending a second deposition. The total judgment amounts to $4,885,982.86. Additionally, the court granted leave for our client to file an application for legal fees and costs within thirty days of the entry of this judgment.
This judgment underscores the importance of holding parties accountable to their contractual obligations and reinforces the principle that financial agreements must be honored as written, correctly qualifying these transactions as loans rather than securities or investments. We are proud to have represented Ms. Khotovitskaya in this matter and to have secured a just outcome on her behalf.
Contact Information
For further information, please contact Mr. Kemal Lepschoque at kl@ishimbayev.com.
About Ishimbayev Law Firm
- Ishimbayev Law Firm is a leading law firm specializing in securities regulation, corporate governance, corporate structuring, and capital markets. Our experienced team is dedicated to providing top-tier legal representation and achieving favorable outcomes for our clients. We excel in ensuring financial transactions are correctly classified and enforced, and we provide comprehensive legal services in areas such as regulatory compliance, corporate restructuring, and navigating capital market complexities. Our commitment to upholding the highest standards of legal integrity and client service sets us apart in the industry.
