Sundance Spas Inc. v. Clark Manufacturing Inc., Roland Clark, Charles Johnson, Galvin Bartlett
Published: Aug. 17, 2004 | Result Date: Jan. 21, 2004 | Filing Date: Jan. 1, 1900 |Case number: RIC354528 Verdict – $6,902,050
Judge
Court
Riverside Superior
Attorneys
Plaintiff
Jonathan M. Wong
(Donahue Fitzgerald LLP)
Defendant
Robert B. Hubbell
(Morrison & Foerster LLP)
John M. Caron
(Worthington & Caron PC)
Experts
Plaintiff
Christian Tregellis
(technical)
Defendant
Steven C. Gabrielson
(technical)
J. Duross O'Bryan
(technical)
Facts
In 1998, Sundance Spas Inc., Chino, purchased the assets of Clark Manufacturing Inc., a spa manufacturer, for approximately $30 million. The asset purchase agreement indicated that Clark Manufacturing had to reimburse Sundance for any money paid on a valid warranty claim made by any customer who purchased a Clark spa. Sundance claimed that Clark failed to pay money owed for warranty claims under the asset purchase agreement. Sundance then sued Clark Manufacturing, Corona, and its owners/officers, Roland Clark, Charles Johnson and Galvin Bartlett, alleging breach of contract. The defendants filed a cross-complaint against Sundance and its parent company, Jacuzzi Inc., alleging breach of contract and fraud; Ernst & Young, alleging professional negligence and negligent misrepresentation; and their own accounting firm, Swenson Corp. and the investment advisory group, The Swenson Group, hired to advise them on the asset purchase agreement alleging professional negligence.
Settlement Discussions
The plaintiff demanded $2,200,000 on complaint and the defendants offered $1,900,000 on complaint.
Damages
Sundance originally claimed it was owed $9.5 million. Days before trial, it admitted it was not owed approximately $2 million of the amount it had been billing for five years and dropped its claim to $7,535,920 (less vendor credits of $158,159). claimed it was owed $7,535,920 for payments made on warranty claims on customers' spas. On the cross-complaint, the Clark defendants claimed damages of approximately $50 million for lost profits.
Result
$6,902,049
Other Information
On the cross-complaint, at the conclusion of the evidence, the court granted Ernst & Young's motion for directed verdict on all claims. The jury found for Sundance.
Deliberation
five days
Poll
12-0 (breach of contract), 10-2 (damages), 12-0 (breach of contract and fraud)
Length
four months
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