Facts

Plaintiff Rosemary Chau claimed that her brother, Paul Chau and his girlfriend, Lana Lee duped her into giving them $400,000 for a construction project in Del Mar. She claimed that she was led to believe that an experienced contractor would be managing the project when, in fact, Paul Chau and Lana Lee were doing so. They ended up spending most of plaintiff's money on things that were unrelated to the project, including personal expenses and the remodeling of their own properties.

Defendants claimed that plaintiff was fully aware that the experienced contractor would not be involved in the project, and that she authorized all of the improper expenditures.

Settlement Discussions

Plaintiff demanded $399,999 per CCP 998. Defendants made no offer.

Result

$1,356,601 for plaintiff. The award included $367,028 in attorney fees. The court found for plaintiff on her claim for fraud and made a specific finding that fraud had been proven by clear and convincing evidence. The court further found that plaintiff was not liable on defendants' claim for breach of contract.

Other Information

FILING DATE: Nov. 6, 2006.