Confidential
Settlement – $370,000Court
Napa Superior
Attorneys
Plaintiff
Matthew Wertheim
(Matt Wertheim & Associates)
Defendant
Experts
Plaintiff
Michael G. Willoughby
(technical)
David E. Erickson
(technical)
Thomas Ashton
(technical)
Phil McGrew
(technical)
Defendant
Marc A. Cohen M.D.
(technical)
Facts
In 1997, the plaintiff Vallejo Community Service Center Inc. entered into a long-term lease for a large commercial space that was built out as a bingo hall to be sublet to fundraising charities. In September 1998, the City of Vallejo passed an ordinance limiting new bingo licenses to charitable services that had offices in Vallejo for the previous two years and spent 70 percent of their bingo profits within the city. The plaintiff sued the city alleging violation of equal protection under the 14th Amendment. After summary judgment in favor of the city, the Court of Appeal reversed, finding that one provision of the ordinance did violate equal protection. The plaintiff argued that the city ordinance effectively had put it out of business. The city argued that the unconstitutional aspect was not responsible, but that damages were due to poor management and marketing.
Settlement Discussions
The plaintiff demanded $399,000 (C.C.P. Section 998).
Damages
The plaintiff asserted that it spent nearly $400,000 in building out the space. It also sought $1 million in damages for lost profits from actual and projected subleases.
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