ArentFox Schiff Wins Over $30 Million Trial Verdict for Potamkin Automotive Group in High Stakes Corporate Governance and Business Misconduct Dispute

On July 10, Judge Richard Platkin of the Albany Supreme Court, Commercial Division, issued the court’s decision, finding that Darwish committed “repeated acts of intentional misconduct,” and “not only concealed his wrongdoing, but affirmatively deceived the tribunal and his principals about it to create the opportunity for additional misconduct.” As a result, the court awarded ArentFox Schiff’s clients compensatory damages totaling $21,750,530, distribution set-off of $560,962, and punitive damages of $7,693,256, for a grand total of $30,004,748. In addition, the court awarded 9% prejudgment statutory interest on over $5 million of the compensatory damages.

In addition to the trial verdict, through a pre-trial Motion for Summary Judgment, ArentFox Schiff secured control of the companies at issue, enabling the sale of the dealerships for a combined value of roughly $40 million. The Summary Judgment Decision was affirmed by the Appellate Division of the New York Supreme Court. In total, ArentFox Schiff secured a $70 million victory.

The dispute stems from a 2022 transaction in which Potamkin Automotive Group affiliate 2427 Investments, Inc. provided $62 million in funding to support Darwish Auto Group’s acquisition of 10 automotive dealerships and related real estate in upstate New York. Under the parties’ agreement, Potamkin-related entities were entitled to governance oversight, board control, and equity in the dealership group.

Potamkin filed the action in August 2022. The long-fought litigation involved extensive pre-trial injunction practice, appellate proceedings, and summary judgment rulings before culminating in a three-week bench trial in October and December 2025. 

“This result reflects Potamkin Automotive’s persistence in asserting its contractual and governance rights and the strength of the evidence developed throughout the case,” said Aaron Jacoby, chair of ArentFox Schiff’s Automotive Group. “The court’s well-reasoned decision recognizes the magnitude of the harm caused by Walid Darwish’s egregious malfeasance.”

The ArentFox Schiff trial team was led by Automotive Group Chair Aaron Jacoby and included Mike McMahan, Michael Cryan, and Daisy Sexton, with paralegal support from Margaret Salvatore.