Navidea wins summary judgement against Capital Royalty Partners
Navidea Biopharmaceuticals announced that the Court of Common Pleas for Franklin County, Ohio issued a ruling in favor of Navidea in its case against Capital Royalty Partners II, L.P., or CRG. The company has been engaged in ongoing litigation with CRG, in its capacity as a lender and as control agent for other affiliated lenders party to the CRG Loan Agreement in the Ohio Court related to Navidea's claims that the lenders fraudulently induced Navidea to enter into a settlement agreement and breached the terms of the same through certain actions taken by the lenders in connection with the agreement reached in 2017, pursuant to which Navidea agreed to pay up to $66.0M to lenders, as well as through actions and misrepresentations by CRG after the agreement was executed. The claims in that suit were for breach of contract, conversion and unjust enrichment against the lenders for their collection of more than $66.0M, the maximum permitted under the agreement. Following an unsuccessful mediation on May 7, 2019, Navidea moved for summary judgment on June 28, 2019. CRG opposed the relief requested by Navidea in the Ohio Court and has filed an action in Texas seeking to confirm CRG's rights to the funds that Navidea seeks to recover. On November 27, 2019, the Ohio Court found that when CRG collected more than $66.0M, they took an excess recovery and breached the agreement. The Ohio Court awarded $4.26M to Navidea, plus statutory interest from the date CRG drew on the Cardinal Health 414, LLC letter of credit on April 9, 2018. The Ohio Court also found that there was no unjust enrichment or conversion by CRG since this was a matter of contract and only contract damages were appropriate. The decision is a final appealable order and terminates the case.