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CONFIDENTIAL

May 8, 1999

Insurance
Malicious Prosecution
Fraud

Confidential

Settlement –  $5,000

Judge

James L. Roeder

Court

Placer Superior


Attorneys

Plaintiff

Steven J. Hassing


Defendant

Steven H. Gurnee
(Gurnee, Mason & Forestiere LLP)


Facts

In March of 1995, the plaintiff, a 54-year-old retired paint salesman, alleged the defendants wrongfully and maliciously filed a cross-complaint against him for indemnity and fraud in an underlying action in which the defendants were sued for malicious prosecution by the same plaintiff's attorney. The plaintiff brought this action against the defendants based on a malicious prosecution theory of recovery.

Settlement Discussions

The plaintiff made a C.C.P. º998 settlement demand for $450,000 which was reduced to $250,000 on the first day of trial, $100,000 on the second day of trial and $30,000 on the third day of trial. The defendants offered $5,000, which was accepted on the evening of the third day.

Damages

Attorneys fees of $21,000 to defend the underlying action.

Injuries

The plaintiff suffered emotional distress.

Other Information

The settlement was reached approximately one year and eight months after the case was filed. An arbitration was held on Oct. 19, 1999, resulting in an award of _____________ to plaintiff. The court bifurcated the trial of the issue of probable cause to be tried to a judge with an advisory jury. The case settled following cross-examination of plaintiff's first witness who repeatedly admitted his untruthfulness and attested to plaintiff's lack of credibility.


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