Investor Wins Honsador Lawsuit

Investor Richard Foreman won a $36.5 million jury verdict against Key Principal Partners for allegedly cutting him out of a deal to purchase Honsador Lumber, Honolulu, Hi. (see May, p.42).

The jury found that Key breached its fiduciary duties, intentionally interfered in Foreman's attempts to acquire Honsador Lumber, and violated Hawaii's unfair competition statute.

Foreman alleged that he and a group of investors, which included Key Principal Partners, formed a partnership in 2003 to buy Honsador for $28 million. According to the lawsuit, Key wrongfully withdrew from the partnership and then secretly negotiated a deal to purchase Honsador at a substantially higher price.

"The jury's verdict sends a loud and clear message about ethics in the marketplace and fair competition with the small businessman or businesswoman," said Foreman. "It is my