DeVries American LLC v. Yellow Cab Cooperative Inc.
Published: Sep. 10, 2005 | Result Date: Jul. 15, 2005 | Filing Date: Jan. 1, 1900 |Case number: 317759 Bench Decision – $112,788
Judge
Court
San Francisco Superior
Attorneys
Plaintiff
Joseph M. Breall
(Breall & Breall LLP)
Defendant
Facts
Plaintiff DeVries American LLC was the third-party claims administrator for defendant Yellow Cab Cooperative
Inc. Each time the plaintiff closed a claim file, it billed defendant about $205. The plaintiff usually had
between 200 and 600 open files.
In May 2000, the parties discussed plans to end their relationship. The plaintiff demanded $250,000 to close all
open files. The defendant refused to pay, stating it was unhappy with the plaintiff's services, which it alleged
had undergone a precipitous decline. According to the plaintiff, the defendant orally agreed to pay it $125,000
if the plaintiff would continue to work on and close files until July 1, 2000 (about one month). Upon entering
into this agreement, the defendant would pay $50,000, and would pay the balance of $75,000 on July 1.
The plaintiff was also to provide a statistical summary of the defendant's losses over the preceding five years. The
defendant paid the initial $50,000, but refused to pay more.
Settlement Discussions
The plaintiff made a demand of $40,000 (C.C.P. Section 998); defendant's offer was $15,000.
Damages
The plaintiff demanded $75,000, the amount owed under the contract. In the alternative, it sought quantum meruit relief, claiming payment of $250,000 for all work completed since defendant's last payment, calculated in the manner used prior to the agreement.
Result
The trial judge found there was a valid oral contract between the parties and that plaintiff substantially performed under it. He awarded the plaintiff $75,000, the amount owed under the agreement, plus $37,787 in prejudgment interest. The judge denied the plaintiff's fraud claim and its claim for payment on all outstanding files, as the parties had reached a novation when they entered into the agreement.
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