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CONFIDENTIAL

May 8, 1999

Real Property
Fraud
Commercial Lease

Confidential

Settlement –  $500,000

Judge

Victoria G. Chaney

Court

L.A. Superior Central


Attorneys

Plaintiff

Fred Rucker


Defendant

Marcus J. Bradley
(Bradley Grombacher LLP)

Gary A. Hamblet

Cynthia C. Mulvihill
( Law Office of Timothy J. O'Shea )


Facts

In November 1995, the plaintiff entered into a lease with defendant for commercial space for the construction of a new medical clinic. The lease space was a business park with CC&RS that contained a restriction against use of the space for medical purposes. After the plaintiff completed most of its construction, the tenants association brought an action to enjoin the use at the space by the plaintiff. An injunction was granted and the plaintiff brought this action to recover the costs which it insured in building the clinic. The plaintiff brought this action against the defendants based on professional negligence, breach of fiduciary duty and fraud.

Settlement Discussions

The plaintiff made a C.C.P. º998 settlement demand for $____________ . The defendants made a C.C.P. º998 offer of compromise for $________________ .

Damages

$480,000 (for tenants improvements) and $200,000 (for costs of equipment)

Other Information

A mediation? was held before the Hon. Lee Sorokin.


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