Laurel Canyon-Chelsea LLC, a Delaware limited liability company, Theodore Stein Jr., an individual v. Cathay Bank, a California corporation
Published: Jul. 14, 2012 | Result Date: May 24, 2012 | Filing Date: Jan. 1, 1900 |Case number: 72104Y0018311JMLE Arbitration – $1,508,910
Court
American Arbitration Association
Attorneys
Claimant
Patricia L. Glaser
(Glaser Weil Fink Howard Avchen & Shapiro LLP )
Respondent
Louis R. Miller III
(Miller Barondess LLP)
Daniel B. Miller
(Wilshire Law Firm PLC)
Facts
Respondent Cathay Bank provided a loan to petitioner Theodore Stein, extending the payment of the loan 12 times over a four-year period, but Stein nevertheless defaulted. Claimants brought an action, asserting claims for breach of a written contract, breach of an oral contract, fraudulent inducement, and breach of the covenant of good faith and fair dealing. Cathay Bank brought a counterclaim when Stein failed to make a payment on the loan and filed two motions for summary judgment as to Claimants' claims and Respondent's counterclaim.
Result
Respondent's motions were granted because Cathay Bank acted reasonably when it gave multiple extensions, and because evidence of Stein's oral contract was barred by the parol evidence rule and the statute of frauds. Stein's fraud claim was also barred because Stein, an experienced attorney, real estate developer, and real estate broker could not show justifiable reliance as a matter of law. Respondent was awarded a total of $1,508,908, including $703,664 in attorney's fees and costs.
Other Information
ARBITRATORS: Robert W. Brown, Lawrence G. Gotlieb, Edward J. Costello Jr.
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