BusinessDen Features $3.6 Million Theft Verdict

What started as a shared dream of opening a sushi restaurant turned into a legal battle that ended with a $3.6 million jury verdict and a business in bankruptcy. 

The case was featured by BusinessDen, which interviewed Robinson & Henry Civil Litigation Partner, Kit Davlin. Davlin discusses the legal battle and how he helped secure the $3.6 million verdict that would expose conspiracy and fraud.

Davlin represented two former co-founders of Shoyu Sushi, Xuanzhi Bai and Junchen Dai. Shoyu Sushi seemed like a promising venture. The restaurant once thrived in Aurora and still has a location in Parker. 

In 2018, four friends joined forces to create the restaurant. They knew each other well and were excited to start something of their own. “They knew each other from other sushi restaurants, where they had worked together,” said Davlin. 

By August 2020, Shoyu Sushi opened its doors and quickly gained popularity. The four partners shared in the success, earning five-figure profits within months. Bai and Dai received $37,800 in the restaurant's first seven months. 

Everything seemed to be going smoothly—until it wasn't. In early 2021, there was a falling out. Bai and Dai noticed irregularities in the restaurant’s finances and suspected that Zuoquan Lin was withholding their share of the profits. 

“When they looked at the accounting, they discovered cash withdrawals,” said Davlin. “When they asked about the cash withdrawals, they were suddenly barred from the restaurant and told that they won’t ever get any money again.”

Feeling betrayed, our clients decided to fight back. They filed a lawsuit against Lin and Shoyu Sushi, claiming that Lin had stolen their 40% ownership stake in the company and stolen nearly $600,000 in funds that rightfully belonged to them.

The case went to trial in July 2023, with a jury deliberating over the evidence. In a unanimous decision, the jury sided with our clients, finding that Lin and Shoyu had engaged in fraud, civil conspiracy, and breaches of contract and fiduciary duty. 

The verdict awarded $1.8 million to each plaintiff, totaling $3.6 million. But the fight wasn’t over. Shoyu Sushi’s Aurora location closed its doors, and the business was declared bankrupt. Lin is appealing the jury’s verdict. 

Despite the bankruptcy filing, Davlin remains determined. “We are going to pursue them through bankruptcy,” he said. “There are claims here—fraud, civil theft, breach of fiduciary duty—that are generally not dischargeable.” 

Learn more about the jury verdict from Davlin in this episode of "From Our Perspective".