Facts

On Aug. 15, 2005, plaintiff David Hamad entered into a written agreement titled "Promissory Installment Note-Interest Included and Secured" with defendant Mohammed Daud Mojadidi. Under the agreement, plaintiff was to provide a loan of $100,000 to defendant for the purchase of property in Newport Beach. The loan was to be repaid upon the sale of the property. Pursuant to the terms of the agreement, plaintiff paid the loan money, in full in the amount of $100,000, to defendant, so that defendant could purchase said real property. The property was later sold. Despite multiple demands by the plaintiff, defendant failed to repay the loan. Plaintiff then filed suit.

PLAINTIFF'S CONTENTIONS:
Plaintiff claimed the loan was a personal loan to defendant.

DEFENDANT'S CONTENTIONS:
Defendant claimed the loan was a partnership loan for the purchase of the Newport Beach property, on which defendant claimed he lost money and therefore no money was owed.

Settlement Discussions

The parties attempted to mediate the case without any success. The parties engaged in a mandatory settlement conference with no offers made by defendant. Plaintiff offered to settle the case for $60,000; this offer was rejected by defendant.

Result

The court granted judgment in favor of plaintiff and against defendant on the First Cause of Action in the Fourth Amended Complaint in the sum of $100,000 plus interest at 10 percent from July 16, 2008 to April 8, 2010. The court found that the testimony of defendant was replete with contradictions, inconsistencies, and inaccuracies such that the court rejected his testimony in its entirety. The court found that plaintiff had discharged his burden of proving by a preponderance of the evidence that the parties' intended to enter into a Loan Agreement pursuant to which plaintiff would be reimbursed by defendant upon the sale of the Newport property.

Other Information

FILING DATE: July 16, 2008.