Jet Edge International awarded judgement against Phenix Jet International/ACP Jet Charters
On January 30, U.S. District Judge Jesus G. Bernal awarded Jet Edge International an $11.9 million verdict against a former employee for breach of contract and duty of loyalty. Following a seven-day trial, a jury found Paul J. Schembari liable for $4.6 million in compensatory damages and $7.3 million in punitive damages. Schembari is CEO of Guam-based Phenix Jet.
The action dates back to 2016. That year, Jet Edge entered into a joint-venture memorandum of understanding with Tokyo-based Sojitz Corporation. Jet Edge contended that it hired Schembari as an assistant director of operations at the behest of Sojitz per terms of the joint venture. The litigation contends that Sojitz used the memorandum and Schembari’s employment to “steal Jet Edge’s confidential information and customers.”
Sojitz established Phenix Jet International in 2017, with Schembari listed as its representative director. Several of Jet Edge’s Asia-based clients soon moved their business to Phenix Jet. Jet Edge’s $75 million case against Sojitz is still ongoing.