Weyerhaeuser Mortgage Company v. California Federal Bank; California Communities, Inc.; William L. Callendar; David J. Reed; George R. Meeker; et al.
Published: Jun. 24, 1995 | Result Date: Jun. 12, 1995 | Filing Date: Jan. 1, 1900 |Case number: 695599 – $31,514,000
Judge
Court
Orange Superior
Attorneys
Plaintiff
Larry A. Sackey
(Law Office of Larry A. Sackey)
Defendant
Experts
Plaintiff
Roger B. Vincent
(technical)
Defendant
George Allen Smith
(technical)
Sue Ann Dickey
(technical)
Facts
In October of 1989, Plaintiff Weyerhaeuser Mortgage Company made a $17,000,000 acquisition and development loan to Defendant California Communities, Inc., (CCI) for purposes of acquiring a residential housing development tract in Corona, Riverside County. A second loan in the amount of $7,000,000 was made by Weyerhaeuser to CCI in June, 1990 for purposes of constructing the first housing phase of the tract. During that same time, FIRREA was enacted and the real estate development market was beginning to decline. Both loans were contingent upon Weyerhaeuser's receipt of a "comfort letter" from Defendant California Federal Bank (CalFed), CCI's parent. CCI subsequently defaulted and Weyerhaeuser was the successful bidder at the June 25, 1992 trustee's sale of the Corona project.
Settlement Discussions
Plaintiff contends it demanded $12,000,000 and Defendants originally offered $500,000 with an indication of $6 million during trial which was rejected.
Damages
Plaintiff asked for $6,500,000 in compensatory damages and punitive damages "substantial enough to send the message, but not over 5 percent of the net worth which translated to $40,000,000.
Deliberation
8.5 hours
Poll
10-2 compensatory, 12-0 right to punitives, 9-3 amount
Length
3 weeks
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