A.B.H. Investments Inc., Hassanali Dharani v. Narven Enterprises Inc., Behram Baxter
Published: Jun. 1, 2002 | Result Date: Mar. 13, 2002 | Filing Date: Jan. 1, 1900 |Case number: GIC739587 Bench Decision – $0
Judge
Court
San Diego Superior
Attorneys
Plaintiff
James C. Mitchell
(Gilleon Law Firm APC)
Defendant
Phillip C. Samouris
(Higgs, Fletcher & Mack LLP)
Experts
Plaintiff
David W. White
(technical)
Jeffrey B. Isaacs
(technical)
H.L. "Bill" Lipman
(technical)
Defendant
Suzanne Mellen
(technical)
Robert A. Rauch
(technical)
Margaret M. Mann
(technical)
Robert H. Wallace
(technical)
Facts
The plaintiffs and the defendants formed a partnership to acquire and renovate the Comfort Inn Hotel located in
downtown San Diego. Financial difficulties caused the partnership to file Chapter 11 bankruptcy in 1995. As
part of a court-approved reorganization plan, the hotel lenders significantly discounted their secured debt in
exchange for an infusion of new capital by the partners. The plaintiffs declined to contribute, so the defendants
contended that the plaintiffs had thereby lost their former partnership interests.
Several years later, the plaintiffs sued and contended that the defendants had essentially defrauded them of
their former partnership interests by allegedly misrepresenting the amount of new capital required, the source
of the defendantsÆ infusion of capital and the availability of money in another business venture between the
parties that the plaintiffs could have used for the Comfort Inn Hotel. The plaintiffsÆ suit was based on theories
of fraud, breach of fiduciary duty, breach of contract and breach of covenant of good faith and fair dealing.
The defendants ultimately obtained summary judgment on the basis that the bankruptcy
reorganization plan had extinguished the plaintiffsÆ claims and because any applicable statute of
limitations had run.
Damages
The plaintiffs claimed damages of $1.6 million as the value of their lost partnership interests, plus $700,000 lost income from the partnership and punitive damages.
Other Information
The summary judgment was entered approximately two years and three months after the case was filed. The plaintiffs have filed a motion to vacate the judgment on the grounds that the court granted a motion for reconsideration of an order denying summary judgment without jurisdiction. If the motion is denied, the plaintiffs will appeal.
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