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Schiavone Firm Ownership Suit Dismissed by Federal Judge

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A federal district court judge in Newark, N.J., dismissed a lawsuit brought by Ronald Schiavone, former co-owner of heavy contractor Schiavone Construction Co., Secaucus, N.J., claiming he was cheated by his former partner, Raymond J. Donovan, in proceeds gained from the firm’s December 2007 sale to ACS, a Spanish construction conglomerate. ACS paid $150 million for Schiavone. Judge Susan Wigenton ruled the case lacked jurisdiction because Donovan, also a former U.S. Labor Secretary in the Reagan administration, was a resident of Florida and not a New Jersey resident. An attorney for Schiavone says the case may be refiled in Florida, but Donovan’s attorney says it lacks merit.

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