Meara v. Posternak
Published: Sep. 12, 1998 | Result Date: Mar. 25, 1998 | Filing Date: Jan. 1, 1900 |Case number: LC005588 Bench Decision – $1,397,150
Judge
Court
L.A. Superior Van Nuys
Attorneys
Plaintiff
Defendant
Experts
Defendant
Steven Franklin
(technical)
Facts
In 1982, plaintiff _______ Meara and defendant Roberto Posternak formed a corporation, defendant European Beverage Company. In 1986, defendant Posternak agreed to hold, as a trustee, the plaintiff's one-half ownership interest in defendant European Beverage. In 1990, the plaintiff requested an accounting as well as his share of the profits of European Beverage. Defendant Posternak refused to provide an accounting and contested the agreement to hold the plaintiff's ownership interest as a trustee. Thereafter, defendant Posternak and defendant Daniel Bobroff formed a second corporation, defendant Morfi. Defendant European Beverage then entered into a commission agreement with defendant Morfi in which defendant European Beverage agreed to pay defendant Morfi commissions on European Beverage's purchases of European wines. From 1991 to 1994, European Beverage paid Morfi over $1.4 million in purported commission. At time of trial, the financial records of European Beverage indicated that the company was insolvent. The plaintiff brought this action against the defendant based on breach of contract, conspiracy and constructive trust theories for recovery of the value of one-half of European Beverage.
Settlement Discussions
The plaintiff made a C.C.P. º998 settlement demand for $610,000. The defendant made a C.C.P. º998 offer of compromise for $20,000.
Damages
The plaintiff sought recovery of one-half of the total commissions paid to Morfi, together with pre-judgment interest from 1991.
Other Information
The verdict was reached approximately seven years and two months after the case was filed. A settlement conference/arbitration/mediation was held on ____/___/19__ before ___________ (name) of ___________ (affiliation) resulting in __________. PLEASE DESCRIBE ANY SIGNIFICANT LEGAL/PROCEDURAL ISSUES WHICH HELP EXPLAIN THE OUTCOME.
Length
six days (bench trial)
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