NEW ORLEANS – An investment group let down by a voided verbal agreement wants the transaction confirmed and completed on their terms.
Eclectic Investment Partners LLP filed suit against J. W. Korth & Co. LP in the Orleans Parish Civil District Court on July 16.
The defendant is accused of refusing to honor a verbal transaction made with the plaintiff.
The plaintiff claims that it entered into a brokerage agreement with Korth & Co. that was never completed. On July 11, Eclectic alleges that through its managing partner, it informed Korth that it wished to sell 500 13.25 percent bonds of Green Field Energy Service Inc. due Nov. 15, 2016, and 500 related, detachable warrants to purchase stock of Green Field Energy Services Inc.
The same day Korth reportedly stated that it would broker the sale by purchasing the bonds for a net price of 107.5 or $535,700. Eclectic accepted those terms.
However, according to Eclectic, the next day, a managing partner of J. W. Korth wrote an email to the plaintiff refusing to confirm the deal and voiding the verbal transaction on the Green Field Energy Services notes because their traders “erroneously reported quotes and sales and purchases in the range of 108% when the value of the securities should be below 50%.” Eclectic denies responsibility for this error.
Eclectic Investments requests that the transaction be completed according to the original terms with interest accrued from July 12 until the date of actual purchase in addition to attorney fees and costs, plus all other entitled relied.
The plaintiff is represented by Bruce V. Schewe of New Orleans-based Phelps Dunbar.
The case has been assigned to Division H Judge Michael G. Bagneris.
Case no. 13-6689.