RMI Dismissed Its Complaint and Abandoned Its Claims Against NMA

In 2018 Refined Management Inc. (“RMI”) filed a lawsuit against the Neighborhood Market Association (“NMA”) seeking to recover damages for breach of a 9-year management contract that commenced in 2015. As you may recall, RMI was formed and controlled by Mark Arabo to take over the management functions he was responsible to perform as president of the NMA, following the emergence of allegations in an earlier lawsuit of his personal mismanagement and misconduct as President. Faced with those allegations, and supported by an interested and complicit Board of Directors, Mark Arabo outsourced NMA management functions to his company under a long-term contract for a sum of $40,000 per month increasing annually to a projected amount in excess of $60,000 per month for 2023.

When the court removed Mark Arabo from his position as President of the NMA, the contract with his company was terminated and recommended for rescission by the appointed interim Receiver. The trial court in the first action declined to terminate the contract of RMI as it was not a party to the underlying litigation. This emboldened RMI to sue to recover the contract value over the remaining years of its term. RMI continued pursuit of these allegations, even though RMI had no continuing involvement with NMA and Mark Arabo, in fact, had formed and was promoting a new organization to compete against NMA.

The NMA was prepared to defend the claims at trial and prove the RMI contract was tainted and unenforceable due to the improper self-dealing which led to its formation. However, shortly before trial was to commence, RMI dismissed its complaint and abandoned its claims to reimbursement.

The NMA thanks its attorneys at STratege Law, Robin Traylor and Scott Scheper, for their steadfast support, efficient and business-conscious approach to litigation, and NMA-first guidance and legal counsel.

Scott Scheper is a trial lawyer and counselor who has spent his entire career in San Diego. Scott earned his law degree, cum laude, in 1991 from Harvard Law School. After 25+ years with a local mid-sized firm, Scott started his own law practice in 2017, where he continues to apply a deeply strategic and aggressive, yet intelligent approach to representing his clients in litigation and other matters. Scott is AV-rated (5.0 of 5.0) and has received frequent recognition as a Super Lawyer and Top Lawyer in his practice areas. Scott Scheper

Robert (“Robin”) M. Traylor is a founding partner of STratege Law. Robin has substantial experience representing, counseling and litigating on behalf of clients in various complex business and insurance disputes, in both federal and state courts. He is Co-Chair of the firm’s Insurance Law practice group, and has represented insurance carriers in insurance coverage matters.

Robert (“Robin”) M. Traylor