Capital Salvage, Bar-K v. Chicago Title Company
Published: Aug. 5, 2003 | Result Date: Apr. 11, 2003 | Filing Date: Jan. 1, 1900 |Case number: BC270235 Bench Decision – $0
Judge
Court
L.A. Superior Central
Attorneys
Plaintiff
Defendant
Robert L. Wallan
(Pillsbury, Winthrop, Shaw & Pittman LLP)
Experts
Plaintiff
Terry S. Kaplan
(technical)
Defendant
Collyer Church
(technical)
Alan Wayte
(technical)
Facts
The plaintiffs sued the defendant title company for breach of contract and escrow negligence. The plaintiffs had structured a real estate loan transaction in which Bar-K loaned money to a limited liability company (LLC) to acquire a commercial building subject to a simultaneous deed from the LLC to the plaintiff Capital Salvage. The LLC defaulted, leading to underlying litigation concerning the structure and authority of LLC to enter into the real estate transaction and the rights to the property. The underlying real estate litigation resulted in a settlement with the plaintiffs obtaining the property which they then sold at a substantial profit. As a part of an underlying settlement, the defendant made a contribution and received a release of all breach of contract claims against it, although an escrow negligence claim was preserved. Following the underlying settlement, the plaintiffs sued on both the released contract claim and in a theory of escrow negligence.
Settlement Discussions
The plaintiffs demanded $1.3 million at a mandatory settlement conference. The defendant offered $10,000.
Damages
The plaintiffs claimed damages of $1.5 million.
Other Information
The court awarded the defendant $375,000 in attorneys' fees on the defendant's post-trial motion.
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