Supply Chain News / Risk & Compliance / Finance & Credit

The Radiant Logistics/DBA Arbitration Deal

January 2, 2013
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Radiant Logistics Inc., a domestic and international logistics services company, announced on Jan. 2, 2012, that it was awarded more than $650 thousand in damages from the former shareholders of DBA Distribution Services Inc., a company it purchased in March 2011.

In the award of arbitration, the arbitrator found that the DBA Shareholders breached certain representations and warranties and awarded Radiant $654,052 for such breaches.

In addition, the arbitrator found that Paul Pollara breached his noncompetition obligation to Radiant and enjoined Mr. Pollara from engaging in any activity in contravention of his obligations of noncompetition and non-solicitation, including activities that relate to Santini Productions and his spouse, Bretta Santini Pollara until Dec. 29, 2014.

Finally, the arbitrator ordered Paul Pollara to pay Radiant more than $21,000, the amount of salary he received while employed by DBA and concurrently violating his noncompetition and non-solicitation obligations. The award also provided that the former DBA Shareholders and Mr. Pollara must pay to Radiant the administrative fees, compensation and expenses of the arbitrator associated with the arbitration.

"The award of arbitration was welcomed progress in the dispute with the former DBA Shareholders," said Bohn Crain, Founder and CEO. "The arbitration effectively awarded damages of $650,000 for claims other than the breaches of Paul Pollara under his employment agreement with our wholly owned subsidiary DBA Distribution Services Inc. and claims in a related matter before the California Superior Court against Bretta Pollara and Oceanair Inc. The $650,000 award will be taken as an off-set against amounts otherwise due the former DBA Shareholders and recognized as a gain, net of associated legal costs, for the quarter ended Dec. 31, 2012."

"While we are committed to vigorously protecting our interests in situations like these, it is important to draw a distinction between the bad acts of a few individuals and the solid contributions being made by members of the DBA network across the country,” Crain continued. “We are very proud to have DBA as part of the Radiant family and although this dispute has been a distraction, it has not prevented us from progressing our growth strategy. In this regard, we look forward to providing additional updates on our integration efforts in Los Angeles and other positive network developments in the near future."

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