Facts

The parties entered into a partnership agreement to buy and remodel a fashionable condominium complex in the Hollywood Hills as an investment. The defendants/cross-complaints made a considerable investment in the project and the plaintiff maintained operations. Ultimately, the funds were exhausted, and the project could not be finished. Thus, the parties were unable to sell the units for a profit and a lawsuit ensued.

PLAINTIFF/CROSS-DEFENDANT'S CONTENTIONS:
The plaintiffs claimed that the defendants were in breach of the agreement because they withdrew equity from many units absent the plaintiff's awareness or permission, tried to physically evict him from the premises, and failed to account to him for withdrawn equity or profits from sales. Further, the plaintiff requested an accounting of the project in its entirety.

DEFENDANTS/CROSS-COMPLAINANTS' CONTENTIONS:
The defendants/cross-complainants claimed that the plaintiff made off with the funds given to remodel the project, did not put in his fair share of funds into the project, did not reimburse the defendants for amounts they contributed to improve the property, did not split income received due to rentals, declined to utilize rental income to upgrade the property or pay costs, failed to properly manage the remodeling, failed to maintain appropriate records, declined to vacate units owned by the defendants, placed false mechanic's liens on the property, and failed to pay rent.

Result

The court awarded the defendants/cross-complainants $1,256,924 for plaintiff's failure to contribute funds to the property, misappropriation of funds, and failure to pay rent.

Other Information

FILING DATE: Aug. 27, 2008.