Greg Gale v. Bill Davis, Connie Davis
Published: Jul. 23, 2011 | Result Date: Mar. 15, 2011 | Filing Date: Jan. 1, 1900 |Case number: 26-47716 Bench Decision – Dismissal
Court
Napa Superior
Attorneys
Plaintiff
Richard J. Mooney
(RJM Litigation Group)
Defendant
Andrew P. Collier
(Pacific Law Partners LLP)
Facts
Defendants Bill and Connie Davis had invested in plaintiff Greg Gale's start-up. Defendants later sued Gale for fraud; that case settled, but Gale defaulted on some of his settlement obligations. Pursuant to the settlement terms, defendants had a judgment entered against Gale for the settlement balance. Gale later initiated this action for breach of contract and interference with economic relations.
Contentions
PLAINTIFF'S CONTENTIONS:
Gale contended that defendants contacted potential investors and wrecked numerous deals that would have provided Gale with the money to pay his judgment under the previous case; this interference constituted breach of the settlement agreement.
DEFENDANT'S CONTENTIONS:
Defendants contended that Gale's claims were barred by the statutes of limitations; the breach of contract claim was a disguised attempt to attack the previous judgment against Gale.
Result
Trial commenced with hearings on MILs, at which time the court encouraged plaintiff to amend the complaint to plead application of the "discovery rule" as a way around the statute of limitations. Defendants subsequently prevailed on a motion for judgment on the pleadings as to the contract cause of action in the First Amended Complaint successfully arguing that the breach of contract claim was really an attack on a previous judgment. Plaintiff filed a Second Amended Complaint focusing on the tort of interference with economic advantage. Defendants prevailed on a motion to strike the Second Amended Complaint, and the case was dismissed.
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