Martin Jaeger v. Marathon Cartage; Bill Boyer, et al., and related cross-action
Published: Aug. 5, 1995 | Result Date: Jul. 5, 1995 | Filing Date: Jan. 1, 1900 |Case number: LC026318 – $550,000
Judge
Court
L.A. Superior Van Nuys
Attorneys
Plaintiff
Defendant
Michael L. Challgren
(The Challgren Law Firm)
Ian I. Herzog
(Herzog, Yuhas, Ehrlich & Ardell, APC)
Experts
Plaintiff
Michael J. Belcher
(technical)
Lillie Berry
(technical)
Andrew J. Waxler
(Kaufman, Dolowich & Voluck LLP)
(technical)
Jay B. Williams
(technical)
Defendant
Robert L. Kehr
(technical)
Randy Crockett
(technical)
William L. Schanz
(technical)
F. Warren Lovell
(technical)
Facts
The underlying case involved a fatal vehicular accident between an automobile and a tractor/trailer rig which occurred in January of 1989. Defendant Cross- complainant Marathon Cartage's truck driver was making a left hand turn, just prior to sunrise, when an automobile driver struck the tractor/trailer and was killed. The decedent's driver's license restricted him from driving at night and autopsy revealed .08 micrograms of cocaine in his bloodstream. Defendant/Cross-complainant's truck driver was cited by the CHP as the cause of the accident (unsafe left turn and failing to yield the right-of-way). The Defendants/Cross-complainants were insured by Savoy Reinsurance Company -- who appointed Attorney Michael Sundstedt to defend against the claims made by the decedent's heirs. The decedent's heirs were represented by Attorney Tom Beck. Mr. Sundstedt and Mr. Beck entered into a settlement agreement for $150,000 and, in the event of nonpayment of the insurance proceeds, the Defendants Cross-complainants would be personally liable. Prior to the settlement, Attorney Sundstedt had threatened to withdraw his representation because payment of his attorneys' fees were delinquent. Defendant Cross-complainant, Bill Boyer (the president and sole shareholder of Marathon Cartage, Inc.), contacted his personal attorney, Plaintiff Cross-defendant, Martin Jaeger, a Professional Law Corporation, to seek his assistance in getting Attorney Sundstedt paid so that Sundstedt would continue his representation in the underlying case. Attorney Jaeger was successful in getting Mr. Sundstedt paid and, thereafter, Mr. Sundstedt entered into the aforementioned settlement agreement -- without the knowledge or consent of Bill Boyer. Subsequent to the settlement and Savoy Reinsurance Company's failure to pay the settlement proceeds, a Judgment was entered against the Defendants Cross-complainants. When Attorney Sundstedt refused to make the appropriate Motion to Set Aside the Judgment, Attorney Jaeger was, once again, contacted by Mr. Boyer. Thereafter, Mr. Jaeger, specially appearing, filed a Motion to Set Aside the Judgment -- which was denied. The Court found that Mr. Sundstedt's conduct in entering into the Settlement without the knowledge or consent of Bill Boyer was not inadvertent but, rather, either grossly negligent or a deliberate act.
Settlement Discussions
Plaintiff demanded approximately $20,000 -- no offer by Defendants. Cross-complainants demanded $500,000 -- Cross-defendant offered $150,000 reduced to $75,000 during trial.
Damages
Plaintiff: claimed attorney's fees owing of approximately $20,000. Defendants Cross-complainants: claimed the Judgment of $150,000 plus interest of approximately $58,750 and "lost business opportunity" in the amount of approximately $3,250,000.
Other Information
This case was filed in September of 1992; two years and ten months prior to this result. Nonsuit was granted as to the Cross-complainants' causes of action for fraud, abuse of process, breach of contract, and negligent infliction of emotional distress. The Cross-complainants hereafter voluntarily dismissed their causes of action for intentional infliction of emotional distress and breach of fiduciary duty -- as well as two companion lawsuits filed in Orange County Superior Court and Santa Monica Superior Court in their entirety in exchange for a stipulation to allow less than a 12-member jury panel so as to avoid possibility of mistrial.
Deliberation
1.5 days
Poll
10-2 complaint, 10-2 cross-complaint, 9-3 damages
Length
19 days
For reprint rights or to order a copy of your photo:
Email
jeremy@reprintpros.com
for prices.
Direct dial: 949-702-5390