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CONFIDENTIAL

Aug. 12, 1995

Breach of Contract
Trademark Infringement
Cross-Complaint

Confidential

Settlement –  $500,000

Judge

William C. Beverly Jr.

Court

L.A. Superior Torrance


Attorneys

Plaintiff

Raymond H. Goettsch


Defendant

Ralph R. LePera


Experts

Plaintiff

Steven P. Kahn
(technical)

Mark R. Newton
(technical)

Defendant

Joseph J. Launie
(technical)

James L. Plummer
(technical)

Facts

This case involves Plaintiff individual, Plaintiff's air-freight-transport franchise (the Cross-defendant) and Defendant air-freight-transport franchisor. On or about July 12, 1988, Plaintiff individual franchisee and Cross-defendant air-freight-transport franchise entered into a contract with Defendant/Cross-complainant air-freight-transport franchisor. Under the terms of the contract, the franchisee was to be an independent contractor and provide exclusive service in Los Angeles and its vicinity for Defendant franchisor, a Delaware Corporation. The franchisor corporation agreed to administer all claims and maintain a carrier liability insurance policy protecting the franchisee. The franchisor was to pay a commission of 70 percent to the franchisee, of the gross net proceeds as computed on the outbound control profit and loss statements within 20 days of receipt. The franchisor agreed to make a final accounting and pay the franchisee; further more the franchisor agreed not to open another Los Angeles area office. On or about June 22, 1990, Defendant/Cross-complainant franchisor terminated the contract.

Settlement Discussions

Plaintiff contends that he and his company made a 998 demand of $399,999 and Defendant corporation made a 998 offer in the amount of $75,000.

Damages

Plaintiff individual and his franchise company claimed damages of $777,000 in lost sales. Defendant/Cross-complainant franchisor corporation claimed special damages of $50,000 on the Cross-complaint.


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