Confidential
Settlement – $40,000Judge
Court
L.A. Superior Central
Attorneys
Plaintiff
Defendant
Facts
On Feb. 5, 1991, the defendant trust, by and through the defendant trustee, entered into a promissory note ("the Note") with a thrift & loan in the principal amount of $175,000. To secure payment and performance of the Note, the defendant trustee executed an absolute and unconditional guaranty limited to the principal amount of $175,000. On Aug. 13, 1993, the Note was amended and modified to the principal sum of $77,000 with the consent of the guarantor. Thereafter, on Oct. 15, 1993, the State of California closed the thrift & loan and immediately appointed the Federal Deposit Insurance Corporation ("FDIC") as Receiver. The FDIC sold, transferred and assigned all rights, title and interest in the Note and security to plaintiff, a Delaware limited partnership. The plaintiff brought this action against the defendants for breach of contract and enforcement of personal guaranty. During the litigation, the obligation was transferred and assigned to a California Corporation, which proceeded with the litigation against the defendants.
Settlement Discussions
The plaintiff made an initial settlement demand for $60,000. The defendant made an offer of $5,000 (payable in increments)
Injuries
The plaintiff claimed damages in the principal sum of $73,928.79, plus accrued interest at the default rate, in the sum of $80,591.62 and late charges in the sum of $8,628.92.
Other Information
The settlement was reached approximately five months after the case was filed.
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