Rocky Mountain High Brands Announces Update on $3,500,000 Judgment Against Former Chairman of the Board
DALLAS, Jan. 03, 2019 (GLOBE NEWSWIRE) -- Rocky Mountain High Brands, Inc. (OTCQB: RMHB), a fully reporting lifestyle brand management company specializing in high-quality health and wellness products, announced today an update on the Company's Judgment obtained in the lawsuit in Dallas County District Court, Trial Court Case Number: DC-17-15441, ("District Court"
against its former Chairman of the Board, Jerry Grisaffi.
Michael Welch, President and Chief Executive Officer of Rocky Mountain High Brands, Inc., stated, "In an effort to keep our shareholders informed of the status of our proceedings against Jerry Grisaffi, we asked our law firm, Cowles & Thompson, P.C., to draft the body of this press release from District Court records and to briefly explain the Court of Appeals process. There appears to be some confusion in the market regarding this Judgment and the appeals process. We wanted to clarify by providing a knowledgeable explanation."
On August 29, 2018, after hearing Mr. Grisaffi testify in District Court, Judge Craig Smith ruled that Grisaffi had violated the District Court's orders to answer discovery. Judge Smith signed an order holding that "the discovery requests not answered directly related to the major claims against Grisaffi and that Grisaffi's hindrance of the discovery process justifies a presumption that his defenses and counterclaims lack merit and justifies the imposition of the most severe sanctions including striking of pleadings."
On August 30, 2018, the District Court entered Judgment against Grisaffi for $3.5 million "for funds obtained through fraud, breach of fiduciary duty and conversion with respect to Series A Preferred Stock." The Judgment also declared the Series A Preferred shares and two convertible promissory notes issued to Grisaffi totaling approximately $384,000 void and of no legal force or effect.
Grisaffi's attorney has filed an appeal of the Judgment entered against Grisaffi (Court of Appeals Number: 05-18-01020-CV). No permission is required to file an appeal. Parties have the right to appeal any final District Court Judgment to the Court of Appeals. The Court of Appeals initially questioned whether the District Court Judgment against Grisaffi was final and ripe for appeal. The Court of Appeals later confirmed that the Judgment was final, and the appeal process has begun.
The Court of Appeals ordered Grisaffi to file his appeal brief by January 19, 2019. The Company has thirty days after Grisaffi files his brief to file its brief, then Grisaffi has twenty days to file a reply brief. After all briefs are filed, the Court of Appeals will schedule a date for oral argument, which is typically four to eight months after all briefs are filed. It is important to note that no new evidence is presented to the Court of Appeals. The Court of Appeals will base its ruling on the record from the District Court. There is no deadline on when the Court of Appeals issues its final ruling in the appeal.
The $3.5 million District Court Judgment against Grisaffi is enforceable despite the appeal. The Company is aggressively seeking collection of the Judgment.
DALLAS, Jan. 03, 2019 (GLOBE NEWSWIRE) -- Rocky Mountain High Brands, Inc. (OTCQB: RMHB), a fully reporting lifestyle brand management company specializing in high-quality health and wellness products, announced today an update on the Company's Judgment obtained in the lawsuit in Dallas County District Court, Trial Court Case Number: DC-17-15441, ("District Court"
against its former Chairman of the Board, Jerry Grisaffi. Michael Welch, President and Chief Executive Officer of Rocky Mountain High Brands, Inc., stated, "In an effort to keep our shareholders informed of the status of our proceedings against Jerry Grisaffi, we asked our law firm, Cowles & Thompson, P.C., to draft the body of this press release from District Court records and to briefly explain the Court of Appeals process. There appears to be some confusion in the market regarding this Judgment and the appeals process. We wanted to clarify by providing a knowledgeable explanation."
On August 29, 2018, after hearing Mr. Grisaffi testify in District Court, Judge Craig Smith ruled that Grisaffi had violated the District Court's orders to answer discovery. Judge Smith signed an order holding that "the discovery requests not answered directly related to the major claims against Grisaffi and that Grisaffi's hindrance of the discovery process justifies a presumption that his defenses and counterclaims lack merit and justifies the imposition of the most severe sanctions including striking of pleadings."
On August 30, 2018, the District Court entered Judgment against Grisaffi for $3.5 million "for funds obtained through fraud, breach of fiduciary duty and conversion with respect to Series A Preferred Stock." The Judgment also declared the Series A Preferred shares and two convertible promissory notes issued to Grisaffi totaling approximately $384,000 void and of no legal force or effect.
Grisaffi's attorney has filed an appeal of the Judgment entered against Grisaffi (Court of Appeals Number: 05-18-01020-CV). No permission is required to file an appeal. Parties have the right to appeal any final District Court Judgment to the Court of Appeals. The Court of Appeals initially questioned whether the District Court Judgment against Grisaffi was final and ripe for appeal. The Court of Appeals later confirmed that the Judgment was final, and the appeal process has begun.
The Court of Appeals ordered Grisaffi to file his appeal brief by January 19, 2019. The Company has thirty days after Grisaffi files his brief to file its brief, then Grisaffi has twenty days to file a reply brief. After all briefs are filed, the Court of Appeals will schedule a date for oral argument, which is typically four to eight months after all briefs are filed. It is important to note that no new evidence is presented to the Court of Appeals. The Court of Appeals will base its ruling on the record from the District Court. There is no deadline on when the Court of Appeals issues its final ruling in the appeal.
The $3.5 million District Court Judgment against Grisaffi is enforceable despite the appeal. The Company is aggressively seeking collection of the Judgment.
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