Former Mexican partner guilty of breach of fiduciary duty

Former Mexican partner guilty of breach of fiduciary duty


LOS ANGELES, Nov. 10, 2022 (GLOBE NEWSWIRE) — In a legal battle fought in the United States and Mexico, a US District Court judge on Wednesday returned verdict on a jury’s verdict finding Mexican defendants Luis Barroso De La Fuente and a competitor he founded conspired against the fiduciary duties of their US partner, City of Industry-based Kolay Flooring International, LLC and its owner, President and CEO Dan Mitchell.

“What’s right is right, and crime is never right,” Mitchell said. “It must not stand still.”

Meanwhile, in Mexico, Kolay and Mitchell have filed lawsuits against Barroso De La Fuente, alleging unfair competition and allegation that he illegally registered a Kolay trademark there in his own name without Mitchell’s or Kolay’s authorization. Kolay’s Mexican attorney said Mitchell and Kolay could claim lost profits and damages after these matters are resolved. In addition, local associates of Mitchell and Kolay are seeking criminal action and an injunction against Barroso De La Fuente over alleged threats against Mitchell and his Kolay associates.

The company founded by Barroso De La Fuente and his father in Mexico is Pisos Kolay, SA de CV, which changed its name to Lalur, SA de CV after Mitchell became aware of Barroso De La Fuente’s misconduct. US District Court Judge Josephine Staton ruled in the ruling that Pisos Kolay and Lalur are one and the same company, despite arguments by Barroso De La Fuente and Pisos Kolay that the companies should be treated separately.

Allegations against Barroso De La Fuente and his company in the US case included allegations of breach of fiduciary duty and conspiracy to harm Kolay.

About Kolay

Kolay Flooring International, LLC is a leading manufacturer with over 25 years of experience in the manufacture, distribution and sale of flooring. Kolay has expanded its product range to include high-quality hard floor coverings that…

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