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Contracts
Breach of Contract
Fraud

Helen Crosson, Michael Crosson, et al. v. Premier Van Lines Inc., et al.

Published: Dec. 14, 2004 | Result Date: Sep. 13, 2004 | Filing Date: Jan. 1, 1900 |

Case number: 03CC07241 Verdict –  $2,924,500

Judge

David T. McEachen

Court

Orange Superior


Attorneys

Plaintiff

Daniel J. Kessler
(Burkhalter, Kessler, Clement & George LLP)

M. Michelle Rohani


Defendant

Michael B. Smith

Kim Schumann
(Schumann Rosenberg)


Experts

Plaintiff

Robert I. Levy
(technical)

Anne W. Silver
(technical)

Defendant

Jeffrey A. Goldstein
(technical)

A. Frank Hicks
(technical)

Facts

In the Spring of 2002, the plaintiffs began preparations to move their family of five from their Yorba Linda home to Riverside. After selling their home, they were required to be out of the house by June 30, 2002. Just one week before the move date, the moving company that had previously scheduled to conduct the move cancelled. The plaintiff Helen Crosson contacted Premier Van Lines Inc. and was assured that Premier could handle the packing, moving, storing and delivery of the plaintiffs' property. Premier faxed the plaintiffs a written estimate for the job in the amount of $4,263. The next day, the Premier sales representative visited the plaintiffs' home, during which time Helen Crosson contended that she inspected the property to be packed and moved. In addition to the furnishings, the plaintiffs had extensive collections of art, sports memorabilia and collectible dolls. The plaintiffs alleged that Premier repeatedly assured the plaintiffs that all of their property would be covered for full replacement in the event of any loss or damage. The move was scheduled for three days, packing on Friday and Saturday, and loading and moving the property on Sunday. On Friday, the first day scheduled for packing, nobody from Premier showed up. After the plaintiffs contacted Premier, they were assured that the packing and moving could be done in two days. On Saturday, packers arrived at the plaintiffs' home but left after only a few hours with very little packing accomplished. On Sunday, the Premier packers and movers arrived. However, before any work began, they presented the plaintiffs with a contract. The contract was not for the agreed $4,263 but for an amount approximately over $9,700. Gary Grubb, the Premier president and owner allegedly told Michael Crosson that either the plaintiffs pay the demanded amount or else Premier will leave and the plaintiffs will be "screwed." The plaintiffs compromised with the defendants to pay $5,000. Helen Crosson signed a new contract and the move continued. Ultimately, Premier completed the move late on Monday night, a full day after the agreed completion date. The plaintiffs' property was taken to the Premier facility in Monrovia where it was to be stored while the Crossons found their new home. Some of the plaintiff's property was put in storage, while the bulk of the Crossons property was left on the trailer parked in a remote location on the Premier lot. In the months following the move, Premier demanded additional money, as much as $9,700 from the plaintiffs for previously undisclosed charges such as warehouse handling and increased hourly rates. The plaintiffs refused to pay anything more than the agreed $400 per month for storage. Four months after the move, a Premier neighbor noticed that the trailer doors were open and informed the defendants. Upon investigation, the defendants learned that the trailer with the Crossons' property had been opened and a substantial amount of the property had been stolen. Despite knowledge of the theft, and even reporting it to the police, the defendants never made any attempts to contact the Crossons. Five months after the defendants discovered the loss, Helen Crosson, fully unaware of the theft, called Premier to arrange for the delivery of the property. Grubb told her to come to the Premier facility to discuss outstanding balances prior to the delivery being scheduled. He did not mention the loss and specifically instructed her not to bring her husband. Helen Crosson met with Grubb on April 22, 2002 at the Premier offices. Grubb detailed allegedly outstanding charges of $8,150 that he was demanding to be paid. The demanded amount even included storage charges for the five months after the loss was discovered. * * *

Settlement Discussions

The plaintiffs served on each defendant a C.C.P. Section 998 demand of $999,999. The defendants offered, on behalf of both defendants, a total of $150,000 (C.C.P. Section 998).

Result

The plaintiffs were awarded $2,924,500 ($524,000 economic damages; $150,000 non-economic damages; $675,000 punitive damages against Grubb; $1,575,000 punitive damages against Premier). Punitive damages against Premier was reduced to $150,000 after judgment notwithstanding the verdict. (Net total verdict of $1,449,500).

Other Information

* * * (CONTINUATION OF FACTS) The plaintiffs alleged that after he finished going over his demand, Grubb finally told Helen Crosson that a substantial amount of their property had been stolen. The plaintiffs further alleged that despite the fact that the plaintiffs were obviously devastated, Grubb would not allow them to see what was left of their property and continued to demand to be paid more money. The defendants denied this. The plaintiffs paid an additional $1,800 to Premier on April 4, 2002. The plaintiffs would not, however, commit to paying more. Grubb, in turn, refused to deliver the property. The plaintiffs offered evidence that they repeatedly pleaded with Grubb just to look at what was left but Grubb refused. In late April 2003, the parties met to discuss the loss. It was at this meeting that the plaintiffs saw the moving agreement for the first time. The agreement previously signed by Helen Crosson now had on it the alleged initials and signature of Michael Crosson. Premier and Grubb contended that one of the initial markings waived the Crossons' full replacement coverage and opted instead for the minimal coverage of 60 cents per pound. The Crossons indicated that the document was forged. It was not until a full five months later, pursuant to a court-ordered injunction, that Premier delivered what was left to the Crossons. When the remains of the property was delivered, much of its was damaged. The Crossons sued Grubb and Premier for unfair business practices, fraud, breach of contract, negligence, warehouseman claims and intentional infliction of emotional distress.

Deliberation

11 hours (Phase 1); 1.25 hours (Phase II)

Length

14 days


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