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Marsh wins $19.5M judgment against Roche

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A Hamilton Superior Court judge has awarded Marsh Supermarkets Inc. a total of $19.5 million in damages in a soured sublease deal with Swiss pharmaceutical- and medical-equipment-maker Roche.

The final judgment, entered Monday by Judge William Hughes following a bench trial in early October, includes nearly $1.4 million in attorney's fees to be paid to Marsh’s Indianapolis-based law firm, Lewis Wagner LLP.

Marsh’s multimillion-dollar award stems from a breach of contract suit it filed in July 2008 to enforce a deal with Roche Diagnostics Corp. to sublease the local supermarket chain’s entire 148,000-square-foot-headquarters in Fishers.

The deal, worth more than $47 million over 18 years, would have been one of the largest of its kind in central Indiana.

Roche, which has its North American headquarters and 2,800 employees spread over several buildings along Interstate 69 near East 96th Street, announced the lease of Marsh’s headquarters in March 2008 but backed out in late May of that year.

The abrupt reversal was a shock to Marsh, which had vacated most of the building, and Roche employees already were moving in and conducting meetings in the auditorium, the lawsuit claimed.

But Roche said it had a right to terminate the deal because Marsh failed to deliver certain documents, including a so-called subtenant non-disturbance agreement—standard paperwork that protects sublease tenants in many of the same ways primary tenants are protected.

Roche spokeswoman Betsy Cox said the company plans to appeal the decision.

“Roche’s corporate policy is to conduct business in a fair and ethical manner and the company believes it was acting in accordance with the terms of the contract when it terminated the sublease,” she said in an e-mail.

Big changes were afoot at Roche the month it canceled the sublease deal. On May 5, 2008, the company said it would transfer 300 local jobs to Germany. Later that month, North American CEO Tiffany Olson resigned abruptly. Roche’s Asia-Pacific chief, Michael Tillmann, took over the local post about a week before the firm told Marsh it was pulling out of the deal.

Tillmann, who resigned as CEO in January 2010, wanted to terminate the agreement with Marsh to give the company more flexibility if he decided to move Roche out of Indianapolis, according to court documents.

In his decision, Hughes said Roche had no right to terminate the sublease and found that Marsh and Roche signed a “valid and enforceable” agreement on March 28, 2008.

A spokesman for Marsh said the company is pleased with the judge’s decision.

Marsh’s losses resulting from the termination through November 2026, the span of the original lease with Roche, totaled $47.1 million, the judge said.

He reduced damages to nearly $18.2 million because Marsh is using 20,000 square feet of space in the building, in addition to a sublease the grocer signed in June 2011 with First Advantage Background Services Corp. for 44,200 square feet.

Including attorney's fees, the judgment totals more than $19.5 million.

Marsh moved its headquarters from Yorktown after it built the four-story building in the Crosspoint commercial park in 1991. The company has since moved several employees to offices at its warehouses on Franklin Road in Indianapolis and in Yorktown.
 

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  • Excellent Court Decision
    The Management Team from Roche North America ran head-on into Senior Roche Management in Basel, Switzerland, nothing more. Unless my math is wrong, local Roche Management entered into a sublease contract that would extend to 2026, with no "out clauses" for downsizing. Contract Law is "black and white" and the fact that 30% of the Contract Value was awarded by the court, suggests that the contract between the parties was well structured, signed by both parties, and then vacated by Roche Senior Management in Basel. The next news story from Roche North America will be the termination of one or more managers involved in this mess.

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  1. The Fringe! Plus, the simple fact that there are so many local faves in such close proximity to each other.

  2. I remenber, watching the toll road, being built, through South Bend, when I was 10 years old. I believe, back then that it was estimated, that the toll road, would be paid for in 20 years and then it would be free. I am now 71, what happened? Since the power is in the people, by that, I mean that, we the people are in total control of everything. I, suggest that no one ever use the toll road again, let it go broke. We the people can control the price of everything, from groceries to gas, if we would just do it. If we don't pay the asking price, the sellers will lower the price and if we wait awhile, they will lower the price to what we accept as reasonable. I would like to know why a highway like interstate 94, is so well maintained, a much better highway, than the toll road, but has no tolls. I would also like to know why, a sitting governor, with a term limit, maximum of eight years, can lease, public property, for 75 years. Even though I have transponders in both of my trucks and will not be affected by the increase, I have been and will contine to avoid using the toll road. I make many trips from northern Indiana to Chicago, every year, and I prefer the better highway, I94!

  3. Coming from her background,she should be used to those kinds of advances! Menard probably figured it was ok to tuck a buck!

  4. I'm still waiting for the list of available, high quality apartments in the Village.

  5. This criminal masquerading as a lawyer obviously has serious issues. He’s been proven by his own testimony to be a pathological liar and probably has a personality disorder as he seems to be constructing a reality around himself. He places no value on truth, honesty or loyalty as evidenced by what he has done to his clients and his own family. And by the demands and lies he has made in court, it is evident he feels entitled to do and say whatever suits his purpose and everyone else is expected to nod obediently and believe him because he is, after all, Bill Super Lawyer; or BS lawyer for short. This millionaire wanna-be no longer owns anything of value; he squandered it and put everything he had into foreclosure. He has no money, house, car, boat or vacation home left to show for what he earned or what he stole. He’s just another loser without morals who will be doing time. I’m certain all of his courtroom shenanigans are antagonizing his poor victims. As Lamar said, his behavior and claims in court have been outrageous. The judge needs to be more than concerned; he needs to be judicial and end this nonsense.

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