Confidential
Settlement – $114,077Judge
Court
L.A. Superior Pasadena
Attorneys
Plaintiff
Defendant
David Romley
(Law Offices of David Romley)
Facts
On December 1, 1994, the plaintiff, a medical corporation, contracted with the defendant, a collection agency, to collect its workers' compensation medical receivables. On December 1, 1994, the defendants, the principals and shareholders of the defendant collection agency, met the plaintiff to discuss the defendants' performance under the contract. Immediately after the meeting, the defendants sent the plaintiff a letter "confirming" that the plaintiff had terminated the parties' contract. The defendants claimed they were owed more than $100,000 as a penalty under the contract and refused to pay the plaintiff $81,829 owed for their prior collections. The plaintiff brought this action against the defendants based on breach of contract and conversion theories of recovery.
Settlement Discussions
The settlement discussions were not disclosed.
Damages
The plaintiff claimed $81,829 in economic loss through conversion, $7,250 in prejudgment interest, $25,000 in attorney's fees and $6,535 in cost.
Other Information
The award was reached approximately seven months after the case was filed. The petition to confirm the award and enter judgment was granted ten months after the case was filed. The defendants have appealed the judgment.
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