Litigation

Experience

Representation of Manufacturer of Utility Vehicles

State wide defense over a 12-year period of manufacturer of CJ 5 and CJ 7 Jeep vehicles against allegations of vehicle instability, with directive to dramatically reduce claims

Representation of Manufacturer of ATVs and Motorcycles

State wide defense over a 10-year period of manufacturer of ATVs and motorcycles against allegations of vehicle instability, with directive to dramatically reduce claims

Representation of Large Retailer

Represented client on state-wide basis with directive to dramatically reduce claims. Tried 8 to 10 jury trials a year for 7 year period, with 90% rate of success.

Appeal in Connection with Enforcement of Arbitration Provision

When a circuit court found the arbitration provision of a student enrollment form at Daymar College to be unenforceable, the college turned to Dinsmore for the appeal. A group of students alleged that they were deceived into enrolling at Daymar through false and misleading statements regarding the transferability of credits and availability of job opportunities. All of the students had signed an enrollment form, which contained a provision that stated any dispute related to the form or their enrollment would be handled through arbitration. The provision also stated that the cost of arbitration would be split amongst both parties. After their initial complaint, the students also argued that they were unaware of the arbitration provision on the enrollment form, and that they were pressured by Daymar to sign the enrollment form quickly. The trial court ruled that the provision was procedurally unconscionable and denied the client’s motion to compel arbitration, explaining that students had a limited time to read and comprehend the enrollment form, and also that requiring students with limited income to pay for half of an arbitration proceeding was unconscionable. Upon appeal, we argued that state and federal law strongly favor the enforcement of agreements to arbitrate, and that state law does not support the proposition that the cost of arbitration can render an arbitration provision unconscionable. Furthermore, we argued that the trial court could have severed the cost-splitting provision as an independent covenant, following state policy to strike objectionable provisions to maintain the contract as a whole. The Kentucky Court of Appeals reversed the decision of the trial court and remanded the matter for additional proceedings.

Personal Injury Matter Relating To a Hand-Held Mixer

We represented a major household product manufacturer in a personal injury matter in Hamilton County, Ohio. The Plaintiff alleged she had suffered significant injuries when operating a hand-held mixer. The case went to trial. By utilizing effective presentations from our expert witnesses, including a live demonstration for the jury, and cross-examination of the Plaintiff and her expert witnesses, we were able to obtain a defense verdict on behalf of our client.

Product Liability Defense of Industrial Equipment Manufacturer Against Claims of Defective Design Involving Bucket Truck

We represented a man-lift manufacturer in a product liability case where plaintiff’s husband died in accident while operating an industrial bucket truck. The plaintiff alleged that the bucket truck should have been equipped with a strain gauge load cell system. The plaintiff filed claims for negligence, strict liability and breach of warrant against our client. After successfully obtaining dismissal of plaintiff’s manufacturing defect claim, we filed Daubert motions to exclude plaintiff’s experts arguing her experts were unreliable. Concurrently, we filed a motion for summary judgment. The state court judge granted both the Daubert motion and summary judgment motion in favor of our client.

Premises Liability Defense Relating to Claimed Damaged to a Vehicle

We represented a retailer against plaintiff’s claim that our client bent the frame of her vehicle during a routine tire rotation and oil change. The plaintiff asserted a negligence claim and, after a one-day bench trial, the Judge found in favor of our client.

Defense of Negligent Security Claim

We represented a retailer in a case where the plaintiff-mother was shopping with her son in our client’s store and heard two other customers using offensive language in earshot of her son. The plaintiff- mother told the customers to stop using the offensive language and a fight ensued. The plaintiff filed suit claiming the retailer should have prevented or intervened in the altercation. The trial court granted summary judgment; however, the plaintiffs appealed the trial court’s decision to the Kentucky Court of Appeals. The Court of Appeals affirmed the trial court’s grant of summary judgment in favor of our client.

Big Sandy Company, L.P. v. Sidney Coal Company and Cliffs Mining

Our firm represented Big Sandy, the owner of land in Eastern Kentucky, for breach of contract and other tort claims seeking proper payment of delinquent coal royalties and seeking to terminate a long term lease for failure to pay these royalties. In a split decision, an arbitration panel ruled that, while the lease could not be terminated, Sidney Coal Company had breached the lease and ordered Sidney to pay overdue royalties to Big Sandy.

Commercial Real Estate Litigation; Land Use and Zoning

Represented national restaurant chain in commercial real estate litigation (trial and appellate court levels) and related local zoning proceedings.

In re: Diet Drugs (Phentermine/Fenfluramine/Dexfenfluramine) Product Liability Litigation

Represented a generic drug manufacturer in thousands of product liability cases where plaintiffs alleged pulmonary and cardiac injury from ingestion of diet drugs. The cases were pending in federal multidistrict litigation proceedings in E. D. of Pennsylvania, and in various state courts in Texas, Alabama, Mississippi, Louisiana, Pennsylvania and California.

Manufacturer of Asbestos Products v. Insurance Company

Served on our trial team as counsel to insurer in multi-million dollar dispute over coverage for asbestos bodily injury. The dispute involved issues of policy limits for product liability versus non-product liability. After years of discovery, briefing, and a trial of issues relating to the types of asbestos exposure experienced by underlying plaintiffs, we succeeded in obtaining an arbitration ruling in our client's favor on the issue exhaustion of policy limits.

MDL 1407: In re: Phenylpropanolamine Product Liability Litigation

Served as national coordinating counsel for Procter & Gamble Distributing Company and Procter & Gamble Pharmaceuticals, Inc. in personal injury cases where plaintiffs alleged injury from the ingestion of over the counter and prescription cough/cold medications. The cases were filed in federal multidistrict litigation proceedings in the W. D. of Washington, and in various state courts.

Personal Injury/Product Liability

We represented a major motorcycle manufacturer in a personal injury product liability case in Montgomery County, Ohio. After conducting some preliminary discovery, and after arranging for an inspection of the product by expert witnesses, we were able to persuade the Plaintiff’s counsel to voluntarily dismiss the litigation.

Enforce Property Rights Against Natural Gas Transmission Pipeline Operator

We successfully litigated (2010-2013) and obtained a summary judgment order compelling a natural gas transmission pipeline operator to implement and pay for mitigation measures so that client could mine its coal, as well as defeating the natural gas transmission pipeline operator’s claims based on property rights, eminent domain, and adverse possession.

Litigated dispute involving claims of breach of fiduciary duty

We successfully assisted the minority shareholders of a large privately-held company in litigating and settling a disputed claim of improper self-dealing and breach of fiduciary duty by the majority shareholder and CEO with respect to subordinated, shareholder debt. After we investigated the company’s finances, board-level discussions, and management correspondence, I took multiple depositions of officers and of Defendant’s expert witness. The admissions I obtained at deposition, and information we gathered in discovery, allowed us to present summary judgment arguments to the Court which demonstrated that the defendant-CEO used the debt instrument to divert millions of dollars to himself, without proper consideration of financing alternatives. We used the deposition testimony, damaging documents, and a concise summary judgment presentation to help force a favorable settlement just prior to trial.

Represent an Indian family business in international forum selection dispute

Rick Porotsky played a leading role in representing an Indian family business entity in U.S. federal court proceedings brought by a U.S. manufacturer who sought to invoke arbitration to avoid parallel Indian court proceedings. Mr. Porotsky participated in video conference court proceedings, conducting examination of the firm’s client online in Mumbai while also conducting cross examination of opposing witnesses. He also played a leading role in briefing to the federal court to address forum selection, jurisdiction, and Indian law.

Dismissal of Claims Alleging Violation of the Fair Debt Collection Practice Act

Unifund CCR Partners v. Harrell, Kentucky, Nelson Circuit Court, Case No. 12-CI-00661 (June 21, 2013)

On June 21, 2013, the Nelson Circuit Court in Kentucky dismissed a counterclaim filed by a consumer alleging that Unifund violated the Fair Debt Collection Practices because Unifund requested statutory prejudgment interest in a state court collection suit. In Unifund CCR Partners v. Harrell, Kentucky, Nelson Circuit Court, Case No. 12-CI-00661 (June 21, 2013) Unifund filed a collection suit seeking to collect on a past due credit card account which had been charged off by the original creditor. In the state court complaint, Unifund sought 8 percent statutory prejudgment interest under KRS § 360.010 from the date the original creditor charged off the past due credit card debt. Ms. Harrell alleged that Unifund’s mere request for such interest violated the FDCPA because the original creditor waived its right to collect any interest when it charged off the account.

Upon Unifund’s Motion to Dismiss filed by FDCPA defense counsel Joseph Tucker and Elizabeth Shaffer of Dinsmore, the Court disagreed with Ms. Harrell’s assertions. To the contrary, the Court clearly held that merely because the original creditor may have waived the right to collect contract interest when it charged off credit card debt, did not waive Unifund’s right, as an assignee, to request that the state court award it 8 percent statutory prejudgment interest from the date of charge off.

The Court thus found that “ Unifund's claim for prejudgment interest does not violate the FDCPA” and dismissed Ms. Harrell’s counterclaim with prejudice.

Dismissal of Claims Related to Collection of Debt under the FDCPA

Stratton v. Portfolio Recovery Associates, LLC, 2013 U.S. Dist. LEXIS 167636 (W.D. Ky. November 26, 2013)

On November 26, 2013, the Federal District Court for the Western District of Kentucky dismissed a consumer’s claims for ostensible violations of the Fair Debt Collection Practices arising out of a request for statutory prejudgment interest in a state court collection suit. In Stratton v. Portfolio Recovery Associates, LLC, 2013 U.S. Dist. LEXIS 167636 (W.D. Ky. November 26, 2013), Ms. Stratton alleged that Portfolio Recovery Associates (“PRA”) allegedly violated the Fair Debt Collection Practices Act (the "FDCPA") by seeking in a separate state court collection suit statutory prejudgment interest under KRS § 360.010 from the date the original creditor charged off the past due credit card debt. Ms. Stratton alleged that PRA violated the FDCPA because the original creditor waived its right to collect any interest when it charged off the account.

Upon PRA’s Motion to Dismiss filed by FDCPA defense counsel Joseph Tucker and Elizabeth Shaffer of Dinsmore, the Court disagreed with Ms. Stratton’s assertions. The federal Court clearly held that PRA’s request in the state court collection suit for 8 percent statutory prejudgment interest did not violate any provisions of the FDCPA. The Court held that even if the original creditor waived its right to collect contract interest when it charged off Ms. Stratton’s credit card debt, PRA still had the right to request that the state court award it 8 percent statutory prejudgment interest from the date of charge off. The Court relied on well established Kentucky law holding that , "‘[t]he legal rate of interest is eight percent (8 percent) per annum,’ which runs as a matter of right on a liquidated demand” and the law of assignment establishing that PRA stepped into the shoes of the original creditor upon acquisition of Ms. Stratton’s debt.

While concluding that PRA's request for statutory prejudgment interest from the date that Ms.Stratton's account was charged-off was not improper under Kentucky law, the Federal Court went even further and held that "even assuming the request [for statutory prejudgment interest] violated Kentucky law," such a request would not amount to an FDCPA violation. Applying the "least sophisticated consumer standard," the Court concluded that "the mere request for 8 percent statutory interest under Kentucky law does not constitute a violation of [§ 1692e(2)(A) of] the FDCPA ... As PRA points out, ... its request to the state court [was aspirational and] did not amount to a false representation ...”

The Court further held that the request for prejudgment interest in the state court collection case did not violate 1692e(5) which prohibits a “threat to take any action that cannot legally be taken." The Court held simply that the act of filing the state court complaint was not a "threat" within the meaning of § 1692e(5).

Finally, the Court held that PRA's mere request in its valid state court debt collection action was not an "unfair or unconscionable" act under § 1692f for the FDCPA because the "state court collection action was a lawful vehicle for PRA to recover the debt Ms. Stratton owes."

Consultant v. Intellectual Property Owner / Inventor

As part of our trial team, I served in 2012-2013 as counsel for the consultant on his claim for breach of a consulting agreement. Our client had assisted the defendant, an inventor of intellectual property, in successfully marketing his inventions to medical device companies, but the inventor then refused to pay our client the millions of dollars in contingent commissions which were owed. After we successfully obtained summary judgment on liability, the case became centered around complex proof of past and future damages which totaled many millions of dollars. I served as lead counsel for the client on several critical depositions, including depositions of defendant’s damages expert, defendant’s accountant, and the defendant-inventor himself. I also served as a liaison for some of our experts on damages-related infringement issues and on complex accounting issues. Using materials developed in discovery and at depositions, I served as lead counsel in responding to a critical motion in limine, whereby the Court approved central parts of our damages theory. This ruling helped lead to successful resolution of the matter shortly before trial.

Breach of Stock Purchase Agreement with Alleged Fraud-Related Counterclaims

When early negotiations failed, I filed suit on behalf of a group of shareholders who were seeking recovery of contingent payments from a multi-billion dollar international corporation. The payments were owed for breach of a stock purchase agreement and for unauthorized transfers of intellectual property. The opposing corporation filed fraud-related counterclaims, vigorously contesting the claim. I advised the client at each step, including seeking detailed discovery and undertaking thorough analysis of intellectual property transfers to demonstrate the triggering of payment obligations. I personally handled five key depositions of lead witnesses, and our team handled more than 20 depositions overall. I also employed a predictive coding document review system, enabling our team to efficiently examine approximately 250,000 of the opponents’ documents as we prepared our case against a better-financed adversary. The corporation decided to settle the matter prior to trial, resulting in the successful resolution of contingent payments owed to the client under the stock purchase agreement.

Refinancing of Original Acquisition Loan for Tri-Arrows Aluminum

Success often brings about new opportunities for businesses, and taking advantage of those opportunities can open the door for further victories. The continuing success of Tri-Arrows Aluminum, an aluminum processing company formed in 2011 and owned by a consortium of Japanese companies, caused them to seek financial avenues that would pave the way for long-term stability and growth. We worked closely with Tri-Arrows to advise them on the $267 million refinancing of their original acquisition loan with a consortium of five lenders. We worked with the client throughout the entirety of the process, including modifying the loan documents to fit the client’s new financial circumstances, which had changed since the original loan. We also addressed numerous compliance issues during the process, including UCC and security requirements. We worked to complete the transaction in just 30 days in order to accommodate the close of the client’s fiscal year. The completion of the refinancing ensured the client was able to free up funds for increased cash flow at lower interest rates, as well as providing for lower capital costs.

Product Liability Lawsuit Involving Allegations of Unwanted Acceleration

Defense of Automobile Manufacturer against unwanted acceleration allegation involving two seriously and permanently injured plaintiffs. Daubert motion lead to exclusion of plaintiffs’ liability expert and motion in limine resulted in exclusion of numerous allegedly similar incidents. Negotiated favorable settlement for Automobile Manufacturer.

Multi-District Product Liability Litigation

National liaison counsel for Recreational Vehicle Manufacturer in multi-district litigation involving more than 300 product liability lawsuits involving the design of a side-by-side utility vehicle. Co-trial counsel for 12 of these lawsuits involving Kentucky plaintiffs.

IN RE: Air Crash at Lexington, Kentucky, August 27, 2006

Counsel for Regional Jet Manufacturer in product liability litigation arising from the August 27, 2006 crash of Delta Flight 5191. All claims against the manufacturer were voluntarily dismissed.

Defended a Sporting Goods Store in a Slip-and-Fall Case

We are representing Dick’s Sporting Goods, in a premises liability case. The plaintiff was visiting the store on a rainy day, and when attempting to step over a puddle, she slipped and fell, injuring herself. We defended that the hazard was an “open and obvious” condition and were granted summary judgment. The plaintiff appealed the decision, and the Kentucky Court of Appeals reversed. . We obtained discretionary review before the Kentucky Supreme Court and are awaiting a ruling following the submission of briefs and oral argument.

Defended Equipment Manufacturer in a Product Liability Case Stemming From a Fatality

The plaintiff had purchased a track loader from our client, a Japanese equipment manufacturer. The plaintiff then attached a rotary mower, which had been purchased from another supplier, onto the track loader and attempted to mow a neighbor’s farm where a man-made pond existed. The plaintiff rode the newly-modified vehicle onto the dam, or berm, of the pond, the ground gave way under the vehicle’s weight, and the vehicle and its occupant overturned into the pond. The operator was killed, and a product liability suit was filed by his family. Working with mechanical engineers, we determined that the operator had been using the track loader in a manner inconsistent with the operating manual and subsequently developed incontrovertible evidence the product was free of any defects. We eventually negotiated a settlement favorable to our client.

Defended Video Game Manufacturer in Product Liability Case

We represented Nintendo in a product liability case that arose from a house fire. The plaintiff was charging a handheld Nintendo game system and left the house, which subsequently caught on fire. The plaintiff’s fire examiner alleged the cause of the fire was the Nintendo device, and the plaintiff filed suit for product liability. During depositions we disproved the theory that the fire was caused by the device, instead showing the fire originated three feet away. Following this, the plaintiff voluntarily dismissed the case with prejudice.

Defeated Foreign Consultant’s Breach of Contract Claims in ICDR Arbitration

Client: A Major US Government Contractor

Mr. Bilaniuk represented a Fortune 500 company in an International Centre for Dispute Resolution (ICDR) Arbitration defeating over $10 million in breach of contract claims brought by a foreign consulting company.

Won Multi-Million Dollar ICC International Arbitral Award

Client: Fortune 500 Government Contractor

Mr. Bilaniuk represented a Fortune 500 government contractor, collaborating with local counsel, in a multi-year ICC international arbitration against a European government in a breach-of-contract dispute over technology and public safety systems. Mr. Bilaniuk’s client prevailed in an award exceeding $50 million, defeated over $200 million in related set-offs, and secured the reversal of the termination of the contract.