Facts

Plaintiff American Contractors Indemnity Company (ACIC) issued surety bonds to administrators of estates where California courts appointed them. Apollo Villapandowas appointed administrator of the Estate of Necitas M. Villapando and became ACIC's bond principal. The plaintiff alleged that the parties entered into an agreement to deposit all funds of the estate into an account which would demand signatures from Villapando and his attorney, defendant Mina N. Sirkin for withdrawals. This agreement made possible plaintiff's issuance of a $450,000 bond for Villapando.

PLAINTIFF'S CONTENTIONS:
The plaintiff claimed that defendant failed to open a joint account and thus breached the agreement. Also, plaintiff alleged that defendant falsely represented a desire to co-sign on the account thus committing negligence through her actions and omissions. Furthermore, as a result of defendant's breach, misrepresentations, or negligence plaintiff claimed to have lost $450,000 on the bond and required $66,144 in attorney fees.

The plaintiff further claimed that defendant asserted that the paying of the bond was dependent upon Villapando's accomplishment of the joint control agreement. The plaintiff claimed that defendant asserted that as a result of Villapando not acting in compliance with the agreement ACIC had no reason to pay on the bond.

DEFENDANT'S CONTENTIONS:
Sirkin denied that her actions or omissions were reasons for plaintiff's losses. The defendant then argued that that issuing of the bond and not whether liability accrued after issuance was the condition agreed upon.

Settlement Discussions

A demand of $525,000 was made and an offer of $10,000 was given.

Result

Plaintiff received $450,000 principal and obtained $8,633 in costs.

Other Information

FILING DATE: June 1, 2006.