Judge reverses decision against Joneses
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On February 16, Windham County Superior Court Judge John Wesley reversed the jury decision against Milestones Financial Services Inc. and its principals, Allen Jones and Sharain Miovech Jones, of West Dover; Norman and Olwyn Jones, of Pitman, NJ; and Albert Miller, of Longboat Key, FL. The defendants have been released from all financial liability in a lawsuit brought by Don and Sheila Albano, of Dover. The lawsuit alleges a breach of contract with the Albanos from a real estate transaction.
In 2004, the Albanos sold their condominium rental businesses, SnowResorts Inc. and SnowResortsHospitality Group Inc., to Allen Jones and Miller, but the companies went out of business within a year. The Albanos maintained Milestones Financial Services still owed them money from the purchase and the conditions were not met.
The Albanos sued Milestones Financial Services, the Joneses, and Miller for fraudulent inducement to contract, conversion, breach of contract, tortuous interference with contractual relations, promissory estoppel, negligent misrepresentation, negligent mismanagement, intentional misrepresentation, and breach of fiduciary duty. On December 4, 2009, the jury awarded the Albanos $774,500 in compensatory damages and $150,000 in punitive damages.
The Joneses appealed the verdict in the Albanos’ lawsuit because they claimed there was no substantial evidence supporting the verdict for fraudulent misrepresentation. According to court documents, the Albanos were required to prove “clear and convincing evidence ‘that (the Joneses) misrepresented an existing fact which affected the essence of the transaction with the plaintiffs.’”
The defendants argued that the Albanos based their claim of fraud on the prospectus presented by Allen Jones and Miller while representing Milestones, which had “yet to be incorporated at the time of the negotiations between the parties.” Following its incorporation “and without personal guarantees by Jones or Miller,” Milestones entered into the contract with the Albanos for the acquisition of the business.
According to the defendants, Don Albano testified that the prospectus “caused (him) to believe that Milestones would be ‘a well-capitalized company.’” But they also argued that the prospectus included no specific representation “of the level of capitalization contemplated for Milestones, nor did Albano or anyone testify that Jones, Miller or Milestones representatives ever state the level of capitalization envisioned for the company.”
The Joneses argued that Albano acknowledged during testimony that “he knew the company had not been incorporated and that no one had made any representations of the assets on hand.” They claim that Albano admitted, “based on what he had been told, money on hand might have been ‘anywhere from $50,000 to $5 million’” and consisted of “speculation.”
But in the court documents, Judge Wesley wrote that “promises amounting to no more than opinions, or suggestions that facts might exist in the future, cannot form the basis for a fraud verdict.” He concluded since the evidence did not establish that the defendants made misrepresentations of existing facts, that the jury’s fraud verdict cannot stand and the award of compensatory and punitive damages must be vacated.
Jones said he was satisfied with Wesley’s decision and is looking forward to moving on. “We said from the beginning that the truth would prevail. The Albanos brought suit against myself, my wife, my parents, and every business entity in which I was involved,” said Jones. “The jury’s decision indicated to us that they were either confused by the facts or by the judge’s charge. Judge Wesley reserved judicial authority to overturn the jury’s decision if he felt that their decision reflected a lack of understanding of the complexities of the lawsuit, the law, and/or the pertinent facts. Judge Wesley was obviously paying attention in the courtroom.”
Despite the ruling, Judge Wesley denied the Joneses’ requests for new trials for fraudulent misrepresentation and the breach of contract claim against the Albanos and granted the Albanos’ motion for attorney’s fees totaling $53,545.
“We’re happy with Judge John Wesley’s reaffirmation of the judgment of $774,500, the additional $53,545 toward attorney’s fees, and the dismissal of Allen Jones’s pusillanimous arguments that the jury was overly sympathetic to my disability and the need to have assistance in walking in the courtroom,” said Albano. “With regard to Judge Wesley’s dismissal of the fraud charges, our lawyer, William McCarty, has filed a motion to review that but we’re pleased with how the rulings came out.”
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The ONLY benefits the Albanos received from their three year legal effort to attack the Joneses are a judgement against a defunct corporation, Milestones (not it's stock holders), and very high legal bills. The Jones family has been released from any and all liabilities by the court.
Having lost almost $500,000 in trying to save the sinking Snow Resorts companies, the Joneses are VERY GLAD the ordeal is over. Their biggest regret is that they did not invite the public to the trial. The public's eyes would have been opened to the real culprit in the Snow Resorts fiasco. Of course the public's opinion would depend upon which set of financials from the pre Jones era they remembered. According to documention provided and testimony given by the Albanos, in reality the Snow Resorts companies did not make any significatnt profit. In fact many years the companies lost money. The financial conditions of the Snow Resorts companies were grossly misrepresented to the Milestones Corporation and it's prinicipals based upon documentation the Albanos submitted to the court.
Based upon documents reviewed and testimony given thru the three year legal process many incidences came to light wherein Albano was far from honest. REALLY FAR from honest. Knowing what we know now we wonder how many others in the Deerfield Valley have been taken advantage of by the Albanos. Our hearts go out to them.
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Allen
In last week’s report of Judge John Wesley’s post-verdict rulings in the lawsuit filed by Sheila and Don Albano against Milestone Financial Services Inc., our synopsis of the judge’s decisions was unclear, as reported by many of our readers.
In essence, the judge threw out the $150,000 fraud judgement against the defendants, and relieved some of the defendants in the suit from having their property attached.
The jury trial’s main verdict, which awarded $774,500 to the Albanos, was upheld. Milestone Financial Services and its principals are still liable for the main award. The defendants are also liable for the attorney’s fees.
Judge Wesley’s summary of the order reads as follows:
“Wherefore it is hereby ordered: Defendants’ motion for judgment as a matter of law as to the complaint for fraudulent misrepresentation, and notwithstanding the verdict, is granted;
Defendants’ motion for judgment as a matter of law in its favor as to the counterclaim for fraudulent misrepresentation, or for a new trial, is denied;
Defendants’ motion for judgment as a matter of law in its favor as to the breach of contract claim, or for a new trial, is denied; Plaintiffs’ motion for attorney’s fees in the amount of $53,545 is granted;
Defendants’ motion to vacate attachment as to any property or interests owned solely or jointly by defendants Sharain Jones, Ma’s Sparkling Clean & More, Allen Jones Real Estate, Norman and Olwyn Jones, and in which Milestones Financial Services Inc. has no ownership interest, is granted.”
We hope this helps clear up any confusion.