EAGAN, MN--(Marketwired - Nov 18, 2016) - A Minnesota jury awarded ARA, Inc. $961,283.42, exclusive of costs and attorney's fees, for claims of breach of contract, fraud, theft and conversion. In March of 2015, TempWorks Software Inc. and ARA Inc. discovered that a mutual customer, JG Staffing, Inc., of Phoenix, AZ, had orchestrated a payment lapping scheme involving the factoring of improperly-discounted invoices. After the scheme was uncovered, the Arizona staffing firm began intercepting debtor payments due ARA, Inc.
In May of 2015, JG Staffing, Inc. filed an unsuccessful lawsuit accusing TempWorks Software Inc. of withholding its proprietary data and overcharging, and ARA Inc. of interfering with a large customer relationship. ARA, Inc. counterclaimed, and was awarded $723,884.63 for fraud and breach of contract, $87,398.79 for conversion, $75,000 for theft, and $75,000 in punitive damages related to the theft. $132,578.29 was awarded by the court for pre-judgment interest.
Documents produced during the discovery phase of litigation tie JG Staffing, Inc. to the operation of web domain "Beware Of TempWorks." The domain is owned by Florida resident David Stemm, who together with Texas businessman Todd Barnes, refer to themselves as "victims" of TempWorks. Barnes is the registered owner of Cibolo Creek Capital, LLC, which conducted over $100,000 of banking transfers with a JG Staffing entity during the pendency of the litigation. A $110,027.07 default judgment was entered in Alabama against Mr. Barnes in 2014, in favor of Birmingham factoring firm Momentum Capital Funding, LLC, in a case involving allegations of theft and fraud.
"We are delighted that this finding of liability holds JG Staffing Inc. accountable for its theft and exonerates our own conduct in the eyes of the public. We look forward to returning the energy spent in this piece of litigation to our customers, employees, and products," stated TempWorks and ARA CEO, David Dourgarian. TempWorks and ARA were represented at trial by their general counsel, Mr. John H. Reid, and Mr. Daniel J. Cragg, a partner with Eckland & Blando LLP.
For more information about TempWorks Software, please visit www.tempworks.com.