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Business Law
Breach of Contract
Breach of Contract

Attorney Recovery Systems Inc., assignee of Management Recruiters International v. Datalode, Inc.

Published: Mar. 16, 2004 | Result Date: Feb. 10, 2004 | Filing Date: Jan. 1, 1900 |

Case number: CV021053 Verdict –  $15,000

Judge

Lynn O. Taylor

Court

Marin Superior


Attorneys

Plaintiff

Joseph P. Graziano

Kurt A. Miller


Defendant

Val D. Hornstein
(Hornstein Law)


Facts

In January 2001, the plaintiff's assignor (MRI) and the defendant entered into a $15,000 written retainer agreement whereby MRI was to use its best efforts to locate for the defendant a Director of Sales and Marketing. If a suitable Director was located by MRI and hired by the defendant, MRI was entitled to a 30 percent fee from the defendant of the Director's first year salary (less the $15,000 retainer fee). If a Director was not located, MRI could keep the $15,000 retainer fee. In February, 2001, (while the search by MRI for a Director was ongoing), the defendant approached MRI and asked MRI to locate a salesperson for the defendant. On or about February 27, 2001, the defendant hired a salesperson presented to the defendant by MRI. The fee for the said placement was $36,000. The defendant paid MRI $21,000 for the placement of the salesperson and told MRI to apply the previously paid $15,000 Director retainer towards the fee due for the salesperson. MRI refused to apply the $15,000 retainer paid for the Director search to the salesperson's bill. The defendant refused to pay any further money to MRI. MRI then assigned its claim for $15,000 against the defendant for the placement of the salesperson to the plaintiff, Attorney Recovery Systems, Inc. ("ARS"), a collection agency. ARS then sued the defendant alleging common count causes of action.

Settlement Discussions

None.

Damages

$15,000 remaining to be paid pursuant to the $36,000 invoice for placement of the salesperson.

Other Information

Two months after the defendant filed its Answer to the Complaint, the defendant filed a separate action against both Attorney Recovery Systems, Inc. and MRI in the same court. ARS then filed a motion to strike ARS from the Complaint in the case, which was granted. Thereafter, the defendant volunntarily dismissed MRI from the Complaint. A court ordered Arbitration hearing was held on December 10, 2002 resulting in an award to the defendant. ARS filed a trial de novo. ARS has filed a Memorandum of Costs totalling $7,305.76.


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