Confidential
Settlement – $70,000Judge
Court
L.A. Superior Pasadena
Attorneys
Plaintiff
Robert F. Brennan
(Law Offices of Robert F. Brennan APC)
Defendant
Steven A. Simons
(Law Office of Steven A. Simons)
Experts
Plaintiff
Timothy C. Saurwein
(technical)
Defendant
Kenneth Zion
(technical)
Facts
On Sept. 16, 1995, the plaintiff signed a 36-month lease for a vehicle from the defendant. The plaintiff was informed by the defendant prior to the sale that the vehicle was a used vehicle, in excellent condition, and was still covered by the factory warranty. Shortly after purchasing the vehicle, the plaintiff noticed that her doors would not unlock, the sunroof and electric windows were not working properly, the air conditioner in the vehicle was not working, and the passenger mirror came loose and was unusable. Upon further investigation, the plaintiff learned that the vehicle had been involved in a collision prior to its sale. The plaintiff alleged that the repairs were poorly performed and the air conditioner compressor, which should have been replaced during repairs, was dented and would have to be replaced. An estimate to correct the collision damage to repair all of the problems and place the vehicle in a pre-accident condition was approximately $4,000. The damage to the vehicle included the right front bumper, hood, front bumper, front radiator core support, grille, headlumps, and turn signal lumps. The plaintiff brought this action against the defendant based on fraud, breach of warranty and the Consumer Legal Remedies Act.
Settlement Discussions
The plaintiff made a C.C.P. º998 settlement demand for $16,000, plus attorney fees (estimated at $20,000). The defendant made a C.C.P. º998 offer of compromise for $25,000.
Damages
The plaintiff claimed lease rescission damages, as well as incidental damages, in the sum of approximately $20,000. The plaintiff also made a claim for general and punitive damages.
Other Information
The settlement was reached following a 7-day trial. An arbitration was held before Jonathan B. Klinck, resulting in an award of $4,000. The plaintiff requested a trial de novo. The jury found for the defendant on the Consumer Legal Remedies Act and the breach of implied warranty causes of action, but found for plaintiff on the fraud cause of action, and determined that plaintiff was entitled to seek punitive damages by a vote of 9-3. The case settled before the punitive damages phase of the trial.
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