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$3.4 Million Awarded to Small Business
Owner For Loss of Business Goodwill
Redevelopment Agency of the City of San Diego v. Ahmad Mesdaq,
Gran Havana
Case Background
The Redevelopment Agency of the City of San Diego condemned
Gran Havana, coffee shop, cigar factory, and hookah bar owned by Mr. Ahmad
Mesdaq in downtown San Diego. Gran Havana was a start-up business experiencing
rapid growth. The business had potential to generate high profits and to become
one of the Gaslamp Quarter’s most prominent businesses.
The City’s condemnation suit eventually forced Gran Havana to
close down permanently. The city’s goodwill expert opined that Gran Havana did
not lose any goodwill value. Nevin Sanli, ASA, of SP&H, determined that Gran
Havana lost $3.4 Million in goodwill value.
Ahmad Mesdaq Retains Sanli Pastore & Hill, Inc.
Nevin Sanli, ASA, and two experienced SP&H analysts worked
diligently and efficiently in performing various analyses on behalf of Gran
Havana, including:
Preparing information requests;
Inspecting Gran Havana’s operations and the surrounding area;
Conducting financial analysis of the business’ income statements and
balance sheets;
Conducting thorough research of industry, economic, and competition
data;
Researching comparable sales transactions;
Creating supported company financial projections of revenue and profit
potential;
Providing support for discovery;
Reviewing deposition transcripts;
Writing well-supported declarations;
Assisting in deposition and trial preparation;
Preparing legal counsel for incisive cross-examination of opposing
expert;
Creating effective and persuasive PowerPoint presentations; and
Successful deposition and trial testimony.
SP&H’s involvement was essential for Mr. Mesdaq to prove the
expected profitability of Gran Havana, despite the fact that it was a recently
started business. SP&H achieved the Gran Havana victory by presenting an opinion
that was supported by thorough research and data and that could withstand
third-party scrutiny.
Trial
The case was tried in the courtroom of the Honorable Judge
John S. Meyer, in the Superior Court of the State of California in downtown San
Diego. The opposing expert testified that the business value of Gran Havana was
$1,200,000, but concluded that there was no loss of goodwill. In his opinion,
the business should have been able to relocate to another location.
Nevin Sanli testified on the issues of business value,
business viability, and related damages. Mr. Sanli proved that the business was
not able to relocate and that Gran Havana suffered a total loss of business
goodwill of $3,361,000.
"… I determined the Business’ sales could have grown
substantially higher than historical sales levels and the Business could
have achieved its maximum potential at the Subject Property…"
Ruling
The jury awarded Mr. Mesdaq $3,361,000 for loss of goodwill,
exactly Nevin Sanli’s opinion. Mr. Sanli’s comprehensive testimony, 100%
supported by substantial research and facts, proved to be the winning element in
this trial.
Contacts and Further Information
For questions on the Redevelopment Agency of the City
of San Diego v. Ahmad Mesdaq, Gran Havana case or other work by SP&H
please contact the following:
Southern California
Nevin Sanli, ASA (310) 571-3400
nsanli@sphvalue.com
Tom Pastore, ASA (310) 571-3400
tpastore@sphvalue.com
Northern California
Forrest Vickery, ASA (916) 614-0522
fvickery@sphvalue.com. |
