Please clear this up if you can. You have reported on three different occasions:
"About four weeks ago Mr. Shaw decided and told the parties, including Mr. Berman, that he did want to settle the case, and did and did a good job doing so, but was overruled and within an hour reneged, despite making representations that he was the sole authority to negotiate a settlement."
"The offer was made at a mediation that Seth himself wanted. Seth accepted and then reneged. "
"And the lawyer for Cowan is going to say, "well your honor it appears that the sole decision maker for Tauriga was over-ruled by his paid consultant after coming to agreement, and this paid consultant was not at the negotiation."
As CEO it seems he would have the authority to act on behalf of the company in a settlement conference, right?
Please let me know if any of these assumptions are incorrect:
The implication is that he reached a VERBAL agreement with Cowan. (Obviously reneging wouldn't have possible if the full terms of the agreement were in writing and signed by the parties.)
Even though Shaw had the authority to reach the agreement he sought the counsel of a third party and possibly other company officials after the verbal agreement was reached and as a result changed his mind and told Cowan the deal was off.
I've had this happen to me...it REALLY sucks. But it shouldn't come as a shock when you deal with some people. I get the sense that it happens a lot...it's just a dishonorable negotiating tactic. Some would never do it while others ALWAYS do it.
What I don't understand is your use of the term "overruled". Unless Shaw had entered into a previous agreement whereby the consultant had veto authority over any settlement agreement (and WTF would have justified that?) the only entity who could have theoretically overruled the agreement reached by the CEO was the TAUG Board of Directors and I get the sense that they don't get involved much***. Or did you mean by "overruled" that the consultant had advised against taking the deal and Shaw took that advice? By the way, you are talking about John Cesario when you say "the consultant", right?
To make it simple was the CEO:
1. Actually "over-ruled by his paid consultant"?
2. Overruled by the TAUG Board?
3. Advised not to take the deal he had agreed to and took the advice?
***For example one of the Directors, his name is Dr. Hingge Hsu, has been on the Board for two 10-Ks and hasn't signed either of them. Is that a legal issue? No...the rules allow it. But it's interesting. He seems unusually well qualified for the position.
I was given that information....I don't know.
AI
