CFGI, LLC v. Common C Holdings LP

CourtSuperior Court of Delaware
DecidedOctober 30, 2025
DocketN23C-03-032 MAA CCLD
StatusPublished

This text of CFGI, LLC v. Common C Holdings LP (CFGI, LLC v. Common C Holdings LP) is published on Counsel Stack Legal Research, covering Superior Court of Delaware primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
CFGI, LLC v. Common C Holdings LP, (Del. Ct. App. 2025).

Opinion

IN THE SUPERIOR COURT OF THE STATE OF DELAWARE

CFGI, LLC, ) ) Plaintiff, ) ) v. ) C.A. No. N23C-03-032 MAA CCLD ) COMMON C HOLDINGS LP ) (d/b/a COMMON CITIZEN) and ) COMMON C GP LLC, ) ) Defendants. )

Submitted: August 25, 2025 Decided: October 30, 2025

POST-TRIAL MEMORANDUM OPINION

Alexandra M. Cumings, Esquire, of MORRIS, NICHOLS, ARSHT & TUNNELL LLP, Wilmington, Delaware, and Kevin P. Polansky, Esquire (Argued), of NELSON MULLINS RILEY & SCARBOROUGH LLP, Attorneys for Plaintiff.

R. Grant Dick IV, Esquire (Argued), and Dean R. Roland, Esquire, of COOCH AND TAYLOR P.A., Wilmington, Delaware, Attorneys for Defendants.

Adams, J.

0 INTRODUCTION

This post-trial opinion concerns a dispute between an accounting-consulting

firm, CFGI, LLC (“CFGI”) and Common C Holdings LP (“Common LP”) and

Common C GP LLC (“Common GP,” with Common LP, “Common”). CFGI alleges

Common wrongfully failed to pay invoices for work done pursuant to a consulting

agreement (the “Agreement”). The Court previously granted summary judgment in

favor of CFGI regarding Common’s breach of the Agreement. Trial, therefore,

focused on two remaining issues: (1) the validity of CFGI’s invoices and (2) which

common entities are responsible for damages arising out of the breach.

For the reasons discussed herein, the Court largely rejects Common’s

arguments regarding the unpaid invoices and enters judgment in the amount of

$2,160,033.50 in favor of CFGI. The Court, however, finds only Common LP is

liable for breach of the Agreement.

1 BACKGROUND1

A. The Parties

CFGI is a Delaware limited liability company headquartered in Boston,

Massachusetts.2 CFGI is a “financial consulting and accounting advisory firm,” not

a certified public accountant (“CPA”) firm.3

Common LP is a Delaware limited partnership.4 Common GP is a Michigan

limited liability company.5 Common is involved in the cannabis industry.6

B. Key witnesses

Judy-Ann Thompson (“J. Thompson”) is a partner at CFGI.7 J. Thompson

worked as the managing director for the Common project (the “Project”).8 Benjamin

Martin was a CFGI employee and testified as CFGI’s Rule 30(b)(6) witness.9 Martin

did not testify at trial, but the Parties lodged his deposition.10 Miles Liscum was a

1 These facts were stipulated to by the Parties or found by a preponderance of the evidence at trial held on February 13 and 14, 2025. See Docket Item [“D.I.”] 121 [“Pretrial Stip.”]; D.I. 125. The Court gives the evidence the weight and credibility it deserves. Citations to the trial and post-trial argument transcripts are in the form “X Tr. #,” with “X” representing the day of trial. D.Is. 128– 29, 139. The joint trial exhibits are cited as “JX #.” The lodged depositions are cited as “Last Name Dep.” 2 Pretrial Stip. at 8. 3 D.I. 32 [“CFGI Opening Br.”] at 3; Feb. 14 Tr. 167:3–6 4 Pretrial Stip. at 8. 5 Id. 6 Feb. 14 Tr. 7:16–8:3. 7 Feb. 13 Tr. 14:11. 8 Id. at 12:5–7. 9 Martin Dep. 8:15–18 (JX 126). 10 D.I. 124. The Court notes that Common relies heavily on the deposition testimony of Martin in its post-trial briefing. Although helpful to the Court, it is difficult for the Court to truly judge the

2 CFGI employee working on the Project.11 Liscum did not testify at trial and his

deposition is not in the trial record.

David Yostos is a founder of the Common entities.12 Joseph Jarvis is another

founder of Common.13 Jarvis did not testify at trial and the Parties did not lodge his

deposition. Fay DeVriese is the Chief Financial Officer for the Common entities

and served as Common’s Rule 30(b)(6) witness.14 Daniel Foley is Common’s former

Chief Financial Officer.15 Neither Foley nor DeVriese testified at trial, but the

Parties lodged their depositions.16

Michael Thompson (“M. Thompson”) was CFGI’s expert witness at trial,

testifying on “the adequacy and reasonableness of CFGI’s work and fees [for the

Project].”17 Jeffrey Willoughby was Common’s expert witness at trial, testifying on

whether CFGI breached its professional duties on the Project.18

credibility of such an important witness without Martin’s appearance at trial. When conflicting, the Court instead relies on the testimony of J. Thompson, who did appear at trial and who handled the Project leading to this dispute. 11 Feb. 13 Tr. 35:17–36:3. 12 Feb. 14 Tr. 7:11–13. 13 Id. at 9:18–20. 14 DeVriese Dep. 2:12–15, 8:8–15 (JX 104). 15 Foley Dep. 9:23–24 (JX 103). 16 D.I. 124. 17 Pretrial Stip. at 18. 18 Id. at 19–20. 3 C. Common hired CFGI.

In early 2022, Common sought outside help resolving issues in its accounting

department.19 Specifically, Common needed assistance reconciling its books and

preparing for an audit.20 Through Foley, Common’s then-CFO, Common contacted

CFGI for assistance on this Project.21 CFGI quoted the Project’s budget as roughly

$300k.22

CFGI and Common formed the Agreement on April 19, 2022, outlining the

Project and services CFGI would provide.23 Jarvis signed on behalf of “Common

Citizen.”24 The Agreement does not specify which specific Common entity is a party

to its terms, 25 leaving that question for the Court. Pursuant to the terms of the

Agreement, CFGI would provide monthly invoices for the services it provided.26

These invoices were due within 15 days of receipt by Common.27

D. Common expanded the scope of the Project.

Shortly after CFGI commenced the Project, CFGI and Foley realized the

problems at Common were greater than previously anticipated.28 CFGI and Foley,

19 Foley Dep. 13:20–15:16. 20 Id. at 13:20–15:16. 21 Id. at 16:4–16. 22 Martin Dep. 71:14–19. 23 JX 1 [“Agreement”] at 5. 24 Id. at 5; Pretrial Stip. at 9. 25 See generally Agreement. 26 Id. at 2; Pretrial Stip. at 9. 27 Agreement at 2; Pretrial Stip. at 9. 28 Foley Dep. 26:21–30:6. 4 Common’s CFO, recommended Common expand the scope of the Project.29

Common agreed to the expanded scope.30 Common pressed for an expedited pace,

desiring a speedy resolution of the Project.31 To meet this pacing demand, CFGI

increased its staff on the Project.32

On May 31, 2022, CFGI sent the first invoice for the Project, totaling

$492,804.45.33 Yostos testified that he was shocked by that bill.34 Instead of

ordering pencils down in light of the increased costs, Common requested an updated

budget from CFGI as they continued to complete the Project.35 CFGI provided an

updated overall budget for the Project in August 2022.36 Throughout the Project,

CFGI provided Common with weekly status updates.37

Under the expanded scope of the Project, CFGI worked on an accounts

payable project with Common’s accounts payable manager, inspected the proper

accounting categorization for branding costs, and worked on correcting the

implementation of an accounting software called Sage Intacct.38 Regarding this last

29 Feb. 14 Tr. 21:10–24:16; Foley Dep. 33:1–16. 30 Feb. 14 Tr. 71:15–16, 87:4–18, 91:20–21, 110:20–111:2. 31 Id. at 91:20–92:1 (Yostos: “And I’m not disputing that I asked for more work. We did . . . . And I wanted it done fast because that’s just who I am.”). 32 Feb. 13 Tr. 60:3–21. 33 JX 107. 34 Feb. 14 Tr. 28:14–17. 35 JX 18. 36 JX 137. 37 JX 207. 38 Feb. 13 Tr. 28:17–30:23. 5 task, Liscum produced a memo on August 15, 2022 detailing the problems with the

Sage Intacct implementation, criticizing both CFGI and Common’s handling of the

task.39

CFGI continued issuing invoices throughout the summer of 2022. 40 Despite

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Bluebook (online)
CFGI, LLC v. Common C Holdings LP, Counsel Stack Legal Research, https://law.counselstack.com/opinion/cfgi-llc-v-common-c-holdings-lp-delsuperct-2025.