This is the property of the Daily Journal Corporation and fully protected by copyright. It is made available only to Daily Journal subscribers for personal or collaborative purposes and may not be distributed, reproduced, modified, stored or transferred without written permission. Please click "Reprint" to order presentation-ready copies to distribute to clients or use in commercial marketing materials or for permission to post on a website. and copyright (showing year of publication) at the bottom.

Contracts
Breach of Contract
Fraud

CDH Industries v. Hydro Systems

Published: Nov. 12, 2002 | Result Date: Oct. 10, 2002 | Filing Date: Jan. 1, 1900 |

Case number: CIV200091 Verdict –  $150,000

Judge

Henry J. Walsh

Court

Ventura Superior


Attorneys

Plaintiff

Todd E. Lavin


Defendant

Howard S. Blumenthal


Experts

Plaintiff

Michael Kobel
(technical)

Defendant

Jeffrey A. Simmons
(technical)

Facts

The plaintiff, CDH Industries, was a distributor of hot tubs. The defendant, Hydro Systems, was a
manufacturer of hot tubs. There was a prior dispute between the parties which was resolved by a
settlement on March 18, 1998. A draft written settlement agreement was signed by both parties
which was to be memorialized in a subsequent and formal settlement agreement. This second
agreement was never prepared. The essential terms of the draft settlement were payment by
Hydro to CDH of $75,000 in cash and delivery by Hydro to CDH of 150 hot tubs at the rate of
fifteen per month. From the start there were disagreements regarding performance. The cash
payment was five days late. Some of the deliveries were late.

Damages

The plaintiff claimed special damages in the form of increased inspection and delivery costs in the amount of $22,800; $341,250 on the loss of profit on the sale of 150 tubs and an additional $210,000 (total, $574,150) in operating profits for a period of eighteen months.

Other Information

The plaintiff expects to be awarded attorney fees.

Deliberation

10 hours

Poll

12-0 (breach of contract)

Length

10 days


#104893

For reprint rights or to order a copy of your photo:

Email jeremy@reprintpros.com for prices.
Direct dial: 949-702-5390