--- title: "OTX Logistics Secures $945,600 Victory in Fiduciary Duty Breach Lawsuit" meta: "og:description": "Jury finds former executive breached fiduciary duty to OTX Logistics, awards $945,600 damages. Second defendant cleared." "og:title": "OTX Logistics Secures $945,600 Victory in Fiduciary Duty Breach Lawsuit" description: "Jury finds former executive breached fiduciary duty to OTX Logistics, awards $945,600 damages. Second defendant cleared." --- August 20, 2024 # **OTX Logistics Secures $945,600 Victory in Fiduciary Duty Breach Lawsuit** Jury finds former executive breached fiduciary duty to OTX Logistics, awards $945,600 damages. Second defendant cleared. [**Commercial &Trade law**](https://exlitem.com/jury-verdict/otx-logistics-secures-945600-victory-in-fiduciary-duty-breach-lawsuit/jury-verdict/category/commercial-trade-law) [**Fraud Dispute**](https://exlitem.com/jury-verdict/otx-logistics-secures-945600-victory-in-fiduciary-duty-breach-lawsuit/jury-verdict/category/fraud-dispute) ### **Outline** Author ![](https://exlitem.com/jury-verdict/otx-logistics-secures-945600-victory-in-fiduciary-duty-breach-lawsuit/_ipx/q_80/user-default.svg) **Anmol Tiwari** ![Article Image](https://media.jurimatic.com/cdn-cgi/image/q=70/images/default_1.webp) > ## OTX Logistics Inc. vs. Haenisch Hardy et al ### ****Case Background**** On October 21, 2021, OTX Logistics Inc. filed a lawsuit in California State, Superior Court of Los Angeles County (Case No. 21STCV38826). Judge [Christopher K. Lui](https://www.linkedin.com/in/christopher-lui-09313642/) presided over the case. #### ****Cause**** Hardy Haenisch served as President of OTX Logistics from January 2011 to April 2020. He also served as President of the board of directors during that period. Christina Suen worked at OTX from November 2008 to July 2021. She ultimately held the position of Vice President of Operations. Suen also served as Secretary of OTX's board of directors from November 2014 until her resignation. While still employed by OTX, Haenisch and Suen conspired to establish competing businesses. On August 23, 2019, Haenisch informed Aileen Servando McGann, OTX's General Manager, about his plan. He was using current OTX employees to set up a new logistics company. He revealed that Suen was helping him obtain necessary licenses for this venture. Haenisch admitted to recruiting Suen and other OTX employees to join his new company. He disclosed that he had purchased an ownership interest in J.H. World Express, a direct competitor to OTX. Haenisch also convinced Kunio Shiroyama, OTX's Import Manager, and other employees to join J.H. World Express. On February 7 and March 3, 2020, Haenisch tried to recruit McGann to his new venture. She declined both times. On July 12, 2021, Haenisch mistakenly emailed ARC Global Logistics' shareholder agreement to Jim Rugui, a former OTX Station Manager. This document listed Suen and Rugui as shareholders of ARC. Suen was still employed by OTX at that time. The agreement also revealed that Haenisch's other company, Logimark International Limited, was ARC's majority shareholder. #### ****Injuries**** OTX suffered significant harm from losing key employees to competing companies. This included managers, IT staff, and other crucial personnel. The company also faced direct competition from the new businesses established by its former officers. These officers used insider knowledge and relationships to compete against OTX. #### ****Damages**** OTX alleges substantial financial losses due to the defendants' actions. Specific monetary amounts are not provided. OTX claims it has suffered and will continue to suffer injury due to Haenisch and Suen's breach of fiduciary duty. The company seeks general, special, and punitive damages, plus interest. ### ****Key Arguments and Proceedings**** #### ****Legal representation**** - ********Plaintiff(s)****: OTX Logistics Inc. - ********Counsel for Plaintiff****: Tyler R. Brown| Steven M. Zimmerman - ********Defendant(s)****: Haenisch Hardy | Suen Christina - ********Counsel for Defendants****: Avi Gholian| Michelle M. La Mar #### ****Claims**** OTX filed a single cause of action for breach of fiduciary duty against both Haenisch and Suen. The complaint alleged: 1. Both defendants owed OTX a fiduciary duty of loyalty due to their positions as officers of the company. 2. Haenisch and Suen knowingly and intentionally breached this duty by soliciting OTX employees to leave and join competing companies while still employed by OTX. 3. Suen assisted Haenisch in obtaining necessary licenses for ARC Global Logistics while still employed by OTX. 4. Haenisch induced multiple OTX employees to leave and join J.H. World Express, a company in which he had a direct financial interest. 5. The defendants' actions were oppressive, [fraudulent](https://jurimatic.com/category/fraud-dispute/), and malicious, justifying an award of punitive damages. #### ****Defense**** Hardy Haenisch and Christina Suen filed an answer denying all allegations. They asserted several affirmative defenses. They claimed the complaint failed to state a valid cause of action. The defendants argued that OTX lacked standing to bring the lawsuit. They contended that OTX failed to exhaust administrative remedies. They also argued that some claims were barred by statutes of limitation. Haenisch and Suen alleged that OTX failed to mitigate damages. They claimed that any recovery would constitute unjust enrichment. Haenisch and Suen argued that OTX's injuries, if any, were caused by OTX or third parties, not them. They characterized the lawsuit as frivolous and pursued in bad faith. They asserted their right to recover attorneys' fees. The defendants maintained they acted in good faith and did not violate OTX's rights. They disputed the validity of punitive damages claims. They denied breaching any obligations to OTX. The answer also raised additional defenses, including waiver, unclean hands, and lack of fiduciary relationship or contractual privity. ### ****Jury Verdict**** On June 12, 2024, The jury delivered a split verdict. They found that Hardy Haenisch breached his fiduciary duty to OTX Logistics. However, they determined that Christina Suen did not breach her fiduciary duty. The jury awarded $945,600 in damages to OTX for Haenisch's breach. In the second phase of deliberations, the jury concluded that Haenisch did not act with malice, oppression, or fraud. **Court Documents:** Available Upon Request [Share with Facebook](https://www.facebook.com/sharer/sharer.php?u=https://exlitem.com/jury-verdict/otx-logistics-secures-945600-victory-in-fiduciary-duty-breach-lawsuit) [Share with X](https://x.com/intent/post?url=https://exlitem.com/jury-verdict/otx-logistics-secures-945600-victory-in-fiduciary-duty-breach-lawsuit&text=x) [Share with LinkedIn](https://www.linkedin.com/sharing/share-offsite/?url=https://exlitem.com/jury-verdict/otx-logistics-secures-945600-victory-in-fiduciary-duty-breach-lawsuit) [Share with Email](https://exlitem.com/jury-verdict/otx-logistics-secures-945600-victory-in-fiduciary-duty-breach-lawsuit/mailto:?body=https://exlitem.com/jury-verdict/otx-logistics-secures-945600-victory-in-fiduciary-duty-breach-lawsuit&subject=email) [Share with WhatsApp](https://api.whatsapp.com/send?text=https://exlitem.com/jury-verdict/otx-logistics-secures-945600-victory-in-fiduciary-duty-breach-lawsuit%20whatsapp) ### **Find your next Expert Witness today** ![Sanjay Adhia](https://exlitem.com/jury-verdict/otx-logistics-secures-945600-victory-in-fiduciary-duty-breach-lawsuit/_ipx/q_80/user-default.svg) ###### **Sanjay Adhia** Forensic Psychiastry ![George Reis](https://exlitem.com/jury-verdict/otx-logistics-secures-945600-victory-in-fiduciary-duty-breach-lawsuit/_ipx/q_80/user-default.svg) ###### **George Reis** Forensic Imaging ![Maria Babinetz](https://exlitem.com/jury-verdict/otx-logistics-secures-945600-victory-in-fiduciary-duty-breach-lawsuit/_ipx/q_80/user-default.svg) ###### **Maria Babinetz** Vocational Rehabilitation Find and retain experts without brokerage or upcharge. ### Looking for more? 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