Facts

In 1999, plaintiff Jean Phleger and defendants John Lee Hudson and Shana Hudson, husband and wife, entered into a lease agreement for 2728 Green Street, located in San Francisco. Phleger sued for fraud and breach of contract for non-payment of rent monies paid during the tenancy and damage to a valuable Oriental rug. The Hudsons cross-complained and sought damages for rent overcharges, utility overcharges, unlawful retention of security deposit, failure to pay interest on security deposition, fraud, and negligent misrepresentation. Plaintiff then cross-complained alleging conversion of personal property and damages to real property.

PLAINTIFF'S CONTENTIONS:
Plaintiff contended that defendants defrauded her and failed to pay rent owed. She also claimed that defendants had promised to care for her personal possessions, including the Oriental rug, which defendants damaged or converted to their own use. She further claimed that defendants caused damage to the real property.

DEFENDANTS' CONTENTIONS:
Defendants contended that they were entitled to a cross-complaint or set off of $60,000 as a result of a wrongful increase in their rent due to Rent Control during their tenancy and also claimed entitlement by way of set off or cross-complaint the amount of their security deposit of $10,000.

Settlement Discussions

According to plaintiff's counsel: Defendants offered nothing to settle this matter. Plaintiff offered to settle the matter in exchange for defendants' agreement to pay her attorneys' fees.

Damages

Plaintiff claimed $69,372 for unpaid rent, $7,000 for unpaid invoices, $30,000 for damage to the Oriental rug, $50,000 for conversion of personal property, and $155,000 for damage to the real property. Plaintiffs also claimed $200,000 in punitive damages and sought accrued interest of $91,426 along with attorney's fees of $200,000 prior to trial. According to plaintiff's counsel: Defendants claimed an set off of $72,000 due to the alleged wrongful increase of rent and failure to return the security deposit. Defendants also claimed their attorneys' fees.

Result

The judge awarded plaintiff $20,882, along with pre-judgment interest, costs of $22,673 and attorney fees of $273,000. Plaintiff also prevailed on defendants' cross-complaint.

Other Information

FILING DATE: June 21, 2006.