(Houston, Texas) – Fabricated evidence and lack of credulity led a Houston jury to award Munsch Hardt Kopf & Harr, P.C. (Munsch Hardt) client, Carlo Civelli, $138 million for breaches of handshake deals and promises. Following a trial taking place over six weeks in the U.S. District Court for the Southern District of Texas, Houston Division, the jury returned its verdict in less than 2 ½ hours and found in favor of Mr. Civelli on all of his claims.
The jury found Phil Mulacek, the former CEO and Chairman of InterOil Corporation, failed to comply with agreements to repay a loan of InterOil shares valued at $30.8 million, to pay a net profits interest of $72.4 million on proceeds from the sale of oil and gas interests, and to pay cost sharing agreements in the amount of $28.9 million, and other loans totaling $5.3 million. The jury also found Mr. Mulacek promised to “settle up” with Mr. Civelli, and Mr. Civelli incurred reliance damages of $28.9 million. The jury found Mr. Mulacek also acted on behalf of other members of his family in connection with the net profits interest agreement.
Three years after filing the case, the defendants produced a document purported to be signed by Mr. Civelli and admitting to the defendants’ key allegations in the case. Detailed discovery and forensic examinations of electronic devices provided convincing evidence the document was fabricated for the case.
The Munsch Hardt trial team consisted of Richard (Dick) Schwartz, lead attorney, and Michael Harvey, and Mike Martin of Martin Walton Law firm .Other members Munsch Hardt assisted in the case development, including Todd Frank, Mitchell McFarland, James (Jim) McGee, Randall Miller, Haley Carter, and Julie Christensen.
“Fundamentally, the jury had to choose who to believe and chose our client,” Schwartz said. “This result reflects years of focused team effort and speaks to the dedication, hard work, and abilities of attorneys and professional staff throughout our Firm.”
The case (Carlo Giuseppe Civelli, et al. v. Philippe Emanuel Mulacek, et al., Case No. 4:17-cv-03739 (S.D. Tex.) received media coverage in both Texas Lawbook and Texas Lawyer.