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Attorneys
Breach of Fiduciary Duty
Breach of Contract

Glen Valley Homeowners Association v. Estate of Lee Barker, et al.

Published: Feb. 5, 2000 | Result Date: Oct. 22, 1999 | Filing Date: Jan. 1, 1900 |

Case number: BC171749 Verdict –  $0

Judge

Richard Fruin

Court

L.A. Superior Central


Attorneys

Plaintiff

Christopher E. Rolin


Defendant

Garth D. Goldberg


Experts

Plaintiff

Robert C. Baker
(Baker Keener & Nahra LLP) (technical)

Defendant

Jerry A. Ramsey
(technical)

Facts

In the underlying construction defect case, the attorney representing the plaintiff homeowners association, died the day the jury returned its verdict. There were pretrial settlement discussions. While the jury was deliberating, the plaintiff and the insurer for the remaining defendants entered into a high-low settlement agreement guaranteeing the plaintiff a total of at least $7.5 million with a cap of $9 million. The jury returned a verdict of $5.1 million. The same day, plaintiff's attorney died of cancer. In the present case, the plaintiff proceeded on a theory of lack of informed consent with respect to a settlement offer that had been made. The plaintiff contended that the homeowners association board should have been advised their attorney was ill with cancer. Had the board been notified its members would have voted to accept an earlier settlement offer of $8 million and they would have avoided incurring trial costs that were in excess of $80,000. The plaintiff also sought $48,000 it claimed it had been overcharged in fees and expenses incurred during the underlying case.

Settlement Discussions

The plaintiff demanded $2 million, reduced to $500,000 before trial. The defendant made no offer.

Damages

Loss of $500,000 in additional settlement money; $80,000 in expenses relating to the trial; $48,000 in expert fees and expenses.

Deliberation

1½ days

Poll

12-0

Length

7½ days


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