Facts

Defendant Brendon Butera began Butera Home Furnishings LLC in Davis, California. Three years later, he closed business and entered into an agreement with plaintiff Kimberly D. Johnson. The agreement was to start a home furnishings store, "Butera Living," in San Diego. The plaintiff and defendant were to each invest $50,000 capital to start the business. The plaintiff invested $50,000 into Butera Home Furnishings LLC, in return for 50 percent ownership. The defendant contributed $36,000 of additional capital and retained 50 percent ownership. The parties entered into an oral operating agreement as well. The company submitted a State of Information to the Secretary of State listing members as defendant and plaintiff. Butera Home Furnishings LLC began doing business as Butera Living and the business flourished.

The plaintiff alleged that a few months later, the defendant began acting strangely and their relationship began to fall apart. The defendant then began to deny plaintiff access to the financial information and the company's books. The defendant told plaintiff that the business was in financial trouble and that plaintiff needed to contribute more money. However, the defendant refused to allow plaintiff to see the company's financial records.

The parties sought to negotiate the sale of their interest with assistance of their attorneys. After futile negotiations, defendant took over plaintiff's interest in the business without informing plaintiff. The defendant changed the locks on the store without telling plaintiff, and plaintiff gained access through an employee. The defendant made all employees leave when he found out plaintiff was at the store and began threatening the plaintiff, demanding that she leave the store or he would call the police. The plaintiff invited the defendant to call the police who arrived shortly thereafter. The defendant falsely reported that plaintiff was a former disgruntled employee and police forced her to leave. Around that same time, the defendant also withdrew all funds from Butera Home Furnishings bank account.

DEFENDANT'S CONTENTIONS:
The defendant filed a cross complaint against plaintiff seeking rescission and restitution for plaintiff's failure to execute the necessary documents to become a member of Butera Ventures LLC. Additionally, defendant sought to recover damages for fraud and conversion, alleging theft of inventory.

Result

Judgment for plaintiff of $388,159 plus prejudgment interest in the amount of $62,105.