Facts

Henry Nicholas, an engineer, entrepreneur and philanthropist who co-founded wireless technology company Broadcom Corp., agreed to loan $21 million to homebuilder and residential developer James Baldwin in June 2010. Only $15.5 million was actually distributed.

As collateral for the loan, Baldwin used his luxury yacht, the Triton, and his Newport Beach home. When Baldwin failed to deliver collateral for the second portion of the loan -- namely the mortgage on nine ocean front lots near Cabo San Lucas in Baja California, Mexico -- Nicholas refused to fund the remainder of the loan. Baldwin sued Nicholas for failure to fund the remainder of the loan and for usury -- meaning the loan terms were not ethical. Baldwin sought in excess of $20 million for damages for the failure to fund. During the litigation, Nicholas had the Triton arrested by the U.S. Marshall's Office to secure his collateral.

Result

The court awarded Nicholas $27.8 million. After 12 days of testimony, the Court found that Nicholas was within his rights to not fund the remainder of the loan and to collect the collateral.