Tylt Inc v Wireless Advocates LLC – 10 Million Allowed Claim Secured

$10 Million Allowed Claim Secured After Years of Complex Litigation and Bankruptcy Proceedings

Following more than five years of intensive and hard-fought litigation in Washington, Novian & Novian, LLP successfully obtained a $10,000,000 allowed claim against a national provider of wireless products that filed for bankruptcy during the pendency of the case. The matter involved a complex commercial dispute, significant discovery, expert testimony, and ultimately required strategic navigation of both civil litigation and bankruptcy proceedings to protect the client’s interests.

The Novian & Novian litigation team was led by Farhad Novian and Andrew Goodman (both appearing pro hac vice), who represented a wireless accessory company engaged in the sale of customized “member benefit kits” to Costco members in connection with the purchase of new smartphones. These kits were distributed pursuant to a multi-million-dollar vendor agreement that formed the foundation of the business relationship between the parties.

The Dispute

The litigation arose out of the breach of a multi-million-dollar vendor agreement, which had far-reaching downstream consequences for the client’s operations, revenue streams, and business relationships. As the dispute progressed, the case expanded well beyond a straightforward contract claim, involving complex factual issues, damages analysis, and expert opinions related to the impact of the alleged breach.

From the outset, Novian & Novian pursued the case with a long-term litigation strategy designed to fully develop the record and position the matter for trial. The team engaged in extensive fact discovery, including document-intensive production, third-party discovery, and numerous depositions. The attorneys also handled aggressive law-and-motion practice, addressing key legal issues that shaped the trajectory of the case.

Preparing the Case for Trial

As the litigation advanced, Novian & Novian continued to press forward through expert discovery, working closely with experts to develop and test damages theories and causation. The firm’s approach remained focused on building a trial-ready case, and by the time discovery closed, the matter was fully primed for trial in Washington state court.

Just as the case approached trial, the defendant filed for bankruptcy protection, significantly altering the procedural posture of the dispute and introducing a new set of legal and strategic challenges.

Bankruptcy Advocacy and Mediation

Rather than allowing the bankruptcy filing to derail the client’s claims, Novian & Novian swiftly asserted its client’s rights in the bankruptcy proceeding. The firm navigated the intersection of commercial litigation and bankruptcy law, presenting the claim to the bankruptcy trustee and advocating for its full recognition.

Through strategic advocacy and mediation, the Novian & Novian team ultimately convinced the bankruptcy trustee to allow a $10,000,000 claim, preserving substantial value for the client despite the defendant’s insolvency and the complexities inherent in bankruptcy proceedings.

The Result

The allowed claim represented a significant outcome in a case marked by years of litigation, procedural complexity, and high financial stakes. The matter reflects Novian & Novian’s ability to litigate complex commercial disputes through trial readiness and, when necessary, adapt seamlessly to bankruptcy proceedings to protect client interests.