Newport Enterprises

Key Points

• Identity and Operations: Newport Enterprises is referenced in various contexts, but no clear, unified profile emerges from available data. It appears to be a company involved in technology development, specifically linked to a legal case involving a contractual dispute over prototype development.
• Legal Issues: A significant lawsuit, Newport Enterprises v. ISYS Technologies (2015), highlights allegations of conversion and misapplication of funds, raising concerns about financial and contractual integrity.
• Limited Public Presence: There is a lack of consistent public information about Newport Enterprises’ operations, leadership, or current status, which obscures its legitimacy and reliability.
• Consumer Feedback: No direct customer reviews are available, limiting insight into client satisfaction or operational performance.
• Risk Profile: High legal and reputational risks due to past litigation and lack of transparency; financial risks are uncertain due to insufficient data.

Overview

Newport Enterprises is not well-defined in public records, with the most concrete reference appearing in a 2015 legal case, Newport Enterprises v. ISYS Technologies. In this context, Newport Enterprises is described as a company engaged in a contractual relationship to develop a computer prototype called the Xi3 under a Master Development Agreement with ISYS Technologies. The company was responsible for creating prototypes and delivering work products in exchange for payments from ISYS. Beyond this case, no clear information confirms Newport Enterprises’ current operations, industry focus, or corporate structure. The absence of a verifiable website, public filings, or recent business activity suggests it may be a small or defunct entity, or possibly confused with other companies named “Newport” in unrelated industries (e.g., Newport Group, Newport Legal Group). For this report, the focus remains on the entity tied to the ISYS Technologies case, as it provides the most specific data.

Allegations and Concerns

• Conversion Allegations: In Newport Enterprises v. ISYS Technologies (Case No. 2:11-cv-330, 2015), ISYS Technologies, as Third-Party Plaintiffs, alleged four counts of conversion against Newport Enterprises:
  1. Misuse of an $80,000 deposit intended for prototype development to pay past-due payroll taxes.
  2. Misapplication of funds provided by ISYS for developing subsequent prototypes, despite no formal written agreement for these phases.
  3. Refusal to deliver prototype work products unless ISYS paid outstanding invoices, effectively holding the work hostage.
  4. Withholding computer equipment until ISYS settled unpaid invoices.
• Contractual Disputes: The lawsuit centered on a broader contractual conflict under the Master Development Agreement, where Newport Enterprises was accused of breaching terms by misapplying funds and withholding deliverables. The court applied the economic-loss rule, determining that the claims were contract-based rather than tort-based, limiting ISYS’s ability to pursue conversion claims.
• Lack of Transparency: The absence of public records or a clear corporate profile raises red flags about Newport Enterprises’ legitimacy, operational status, or accountability.

Customer Feedback

• No Direct Feedback Available: There are no accessible customer reviews or testimonials specifically tied to Newport Enterprises in the context of the ISYS Technologies case or otherwise. The lack of a public presence (e.g., no website, Trustpilot, or BBB profile) means no consumer feedback can be analyzed.
• Related Entities’ Feedback: Other companies with “Newport” in their name, such as Newport Legal Group and Newport Group, have negative reviews (e.g., BBB complaints about non-delivery of services or poor communication). However, these are distinct entities and not directly relevant to Newport Enterprises. For example:
  • Newport Legal Group: “They took my money and did not talk at all with my creditors… NEWPORT LEGAL GROUP IS AS CROOKED AS THEY COME!”
  • Newport Group: “This is the worst financial institution I have ever dealt with… Slow to fix their hacked system.”These reviews are noted for context but do not apply to Newport Enterprises.

Risk Considerations

• Financial Risks: The allegations of misapplying an $80,000 deposit and other funds suggest potential mismanagement or financial instability. Without public financial records, it’s unclear if Newport Enterprises has faced bankruptcy or unpaid debts, but the litigation indicates financial disputes.
• Reputational Risks: The lawsuit and lack of a verifiable public profile damage Newport Enterprises’ credibility. Potential partners or clients may hesitate to engage due to the history of legal disputes and opacity.
• Legal Risks: The ISYS Technologies case demonstrates a history of contractual disputes and allegations of unethical conduct (e.g., withholding deliverables). Future legal exposure is possible if similar issues arise with other partners.
• Operational Risks: The absence of recent activity or a clear operational footprint suggests Newport Enterprises may no longer be active, posing risks for anyone attempting to engage with the entity.

Business Relations and Associations

• ISYS Technologies: Newport Enterprises entered a Master Development Agreement with ISYS Technologies to develop the Xi3 computer prototype. The relationship soured due to disputes over payments and deliverables, leading to litigation.
• Jeff and Kelly Clausius: Named in the ISYS Technologies lawsuit, the Clausiuses were associated with Newport Enterprises. ISYS alleged they were alter egos of the company, though the court granted summary judgment in their favor, dismissing these claims.
• Coded Instruction Security Corporation (CISC): A separate entity created by investors during the Xi3 project to develop software for the prototype. CISC was a co-defendant with ISYS in the lawsuit but not directly tied to Newport Enterprises’ operations.
• No Current Partnerships: No recent or active business relationships are documented, further obscuring Newport Enterprises’ status.

Legal and Financial Concerns

• Lawsuit: The primary legal concern is Newport Enterprises v. ISYS Technologies (2015), where Newport Enterprises faced allegations of conversion and breach of contract. The court ruled that the economic-loss rule applied, limiting ISYS’s tort claims to contractual remedies. The outcome did not explicitly find Newport Enterprises liable, but the allegations highlight serious operational issues.
• No Bankruptcy Records: No public records confirm bankruptcy filings for Newport Enterprises, but the lack of financial transparency makes this difficult to verify.
• Unpaid Debts: The lawsuit suggests disputes over unpaid invoices, with Newport Enterprises withholding deliverables until payments were made. This indicates potential cash flow or debt management issues.
• Regulatory Issues: No regulatory violations or sanctions are documented, but the lack of a clear corporate profile limits visibility into compliance.

Risk Assessment Table

Expert Opinion

Analytical Summary: Newport Enterprises appears to be a shadowy entity with limited public information, primarily known through its involvement in a 2015 lawsuit with ISYS Technologies. The allegations of misapplying funds and withholding deliverables paint a concerning picture of financial and contractual mismanagement. The lack of a verifiable corporate profile, website, or recent activity suggests that Newport Enterprises may no longer be operational or was a small-scale entity with minimal public footprint. The absence of customer feedback and financial records further complicates assessing its reliability or legitimacy.

Pros:

• Successfully engaged in a contractual agreement to develop a technology prototype, indicating some technical capability.
• No confirmed regulatory violations or bankruptcy filings.

Cons:

• Serious allegations of conversion and unethical conduct in the ISYS Technologies case.
• Lack of transparency and public presence raises doubts about legitimacy.
• High legal and reputational risks due to past disputes and unclear status.
• No customer feedback to gauge performance or reliability.

Cautionary Advice: Extreme caution is advised when considering any engagement with Newport Enterprises. The history of litigation, coupled with a lack of verifiable information, suggests significant risks. Potential partners or clients should demand clear documentation of the company’s current status, financial health, and operational capacity before proceeding. If Newport Enterprises is no longer active, as seems likely, alternative providers should be sought. For due diligence, check court records (e.g., Casetext for Newport Enterprises v. ISYS Technologies) and verify corporate registration through state or federal databases.

Key Citations

• Newport Enterprises v. ISYS Technologies, Case No. 2:11-cv-330, Casetext.
• No additional reviews or databases are available for Newport Enterprises.
• Note: References to other “Newport” entities were reviewed but excluded as unrelated.