Facts

Plaintiff, Loanguy.com, was an online loan broker based on Los Angeles. In 2006, Loanguy received a loan application from Yan Properties Realty Inc. that contained what appeared to be fraudulent information. Loanguy sued Yan Properties and its principles, Donald Risner and Ara Hunanyan claiming they had submitted fraudulent information.

PLAINTIFF'S CONTENTIONS:
Plaintiff Loanguy contended that it could not resell the loan on the secondary market because the application contained fraudulent information. Since it could not resell the loan, it had to foreclose. Plaintiff argued that the fraudulent information on the application included the applicant's work history, income and deposit verification.

DEFENDANTS' CONTENTIONS:
The defense contended that none of the information on the loan application was fraudulent. The defendants contended that they had not done anything wrong.

Damages

The plaintiff sought general damages for defendant's alleged breach of contract and fraud.

Result

The parties settled for $52,500 prior to trial.