A Taft Chicago trial team won a jury verdict in Cook County for client Michael Eggum, who sued his former restaurant business co-owner Ryan Kowalis for fraud and breach of fiduciary duty regarding Eggum’s investments in a restaurant business co-owned by Kowalis.

On Sept. 4, a Cook County Circuit Court jury found defendant Kowalis—who is the acting General Manager of Orland Toyota—liable for fraudulently inducing Plaintiff Eggum, a U.S. Army Combat Veteran, to invest the money he saved while serving 10 tours of combat duty in Afghanistan and Iraq into a restaurant business that the defendant co-owned and for which he acted as an officer and director.  The evidence at trial included that Kowalis wired approximately half of Eggum’s initial $100,000 investment into Kowalis’ personal bank account the day after Eggum had wired the money to the restaurant’s bank account.

After almost two weeks of trial, the jury found Kowalis liable for fraud and breach of fiduciary duty and awarded Eggum almost $400,000, which included $113,837 in compensatory damages and almost $300,000 in punitive damages. The jury awarded the defendant $3 on his counterclaims.

“Our civil jury system works well; with its significant punitive damages award, the jury sent a powerful message to corporate officers and directors that fraudulently inducing investors and then taking their investment money will be severely punished. Mike Eggum served our country and protected our citizens in Afghanistan and Iraq during a time of war. Yesterday, the jury protected Mike–and other investors–from fraud by a powerful punitive damage award,” said Taft partner Todd Rowden.

The Taft team included partners Rowden and James Oakley and associate Allison Lovell.

Rowden is an experienced trial lawyer and complex commercial case litigator whose practice focuses on serving some of America’s largest financial services corporations, small and middle-market companies, and private-sector businesses, entrepreneurs and individuals. Known in the legal field for his keen business and trial strategy and skilled negotiations, he counsels clients on business disputes, dispute resolution, and internal investigations.

Rowden and Oakley have won significant jury verdicts including an $8.2 million dollar verdict for plaintiff RyKrisp LLC in 2019 on intentional tort claims, which included $6 million in punitive damages.

Oakley is a partner in Taft’s Commercial Litigation practice group. Working with businesses and individuals in various industries, including the construction, energy, real estate, and finance sectors, he counsels clients on complex litigation matters through mediation and international arbitration.

Lovell is an associate in Taft’s Litigation group in Chicago. She focuses her practice on a wide range of civil litigation matters and has experience in all aspects of litigation, including discovery, substantive motions and briefs, oral advocacy, and settlement negotiations.