Federal Financial Company v. Seastar, Inc., John Musial
Published: Dec. 13, 1997 | Result Date: Oct. 15, 1997 | Filing Date: Jan. 1, 1900 |Case number: 761250 – $5,981,080
Judge
Court
Orange Superior
Attorneys
Plaintiff
Defendant
Experts
Defendant
Lawrence Buster
(technical)
Emil Zuccaro
(technical)
Facts
On Jan. 6, 1989, Lincoln Savings made a construction loan of $8,550,000 to defendant Seastar Inc. The loan was secured by the property to be developed and guaranteed by defendants John Musial and Linda Musial. After Lincoln Savings was placed into conservatorship, the FSLIC and RTC administered the loan. Defendant Seastar completed the project, sold 23 homes, and developed four finished lots but failed to pay off the construction loan. The plaintiff Federal Financial Co. acquired the asset from the RTC and filed a judicial foreclosure action against defendant Seastar and the guarantors and brought claims for breach of contract and breach of guaranty.
Settlement Discussions
The plaintiff made a settlement demand for $40,000 plus the property. According to defendant, plaintiff made a settlement demand for reconveyance of the deed of trust and no damages. Per plaintiff, defendants made a C.C.P. º998 offer of compromise for $40,000.
Other Information
The verdict was reached approximately one year and seven months after the case was filed. The jury was advised only on the judicial foreclosure claim. The court awarded judgment to plaintiff on the judicial foreclosure claim for sale of the property. POST TRIAL MOTIONS: The court granted plaintiff's motion for judgment notwithstanding the verdict on the breach of guaranty claim against John and Linda Musial, and, per defendant, the breach of contract and common count claims against Seastar.
Deliberation
two hours
Poll
10-2 (defense for Seastar and the Musials on breach of contract and breach of guaranty claims); the court awarded plaintiff judgment on the judicial foreclosure claim against Seastar in the amount of $5.9 million. The court granted plaintiff's motion for JNOV and awarded plaintiff judgment against the Musials on the breach of guaranty claim for $5.9 million
Length
six days
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