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CONFIDENTIAL

Aug. 17, 1996

Real Property
Wrongful Eviction
Commercial Lease

Confidential

Settlement –  $150,000

Judge

Philip D. Sharp

Harry R. McCue

Ronald S. Prager

Court

San Diego Superior


Attorneys

Plaintiff

Paul A. Vesco Jr.

Rory R. Wicks


Defendant

Steven B. Duke

John F. Ramey
(Abir Cohen Treyzon Salo LLP)

Michael J. Wijas

Mary L. Waltari

Byron G. Mousmoules


Experts

Plaintiff

Denis F. Darko
(medical)

Hugh W. Curfman Jr.
(technical)

Defendant

Manuel Gonzalez
(technical)

Carl Lloyd Sheeler
(technical)

Facts

The plaintiff tenant was a 52-year-old business owner and a tenant of the defendant landlord's commercial property. The plaintiff sold, leased and repaired Toshiba copy machines. The plaintiff claimed that in August 1994, the defendant landlord introduced him to the defendant agent as a possible investor in the plaintiff's business. Over Labor Day weekend, 1994, the defendant agent allegedly locked the plaintiff out of the offices. On the Tuesday following the holiday weekend, the defendant agent allegedly called the plaintiff tenant's customers, informed them that there was "new management" of the business, that customers would have to enter into new service contracts, and that all bills would have to be paid. The police gave possession of the premises back to the plaintiff tenant on Thursday, Sept. 8, 1994. Over the following weekend, the defendant landlord allegedly removed all of the plaintiff tenant's business equipment and inventory including customer checks which had been mailed to the plaintiff tenant. The plaintiffs, the tenant and the manager, brought this action against the defendants, the landlord and the agent, based on wrongful eviction, business conversion and assault and battery theories of recovery. The defendant landlord brought a cross-complaint against the commercial broker based on breach of rental contract, breach of assignment agreement, negligence and indemnity theories of recovery.

Settlement Discussions

The plaintiffs made an initial settlement demand of $60,000. The defendants offered to return the equipment. Two months before trial, the plaintiffs made a settlement demand of $125,000 and the defendants offered to settle for $25,000. One week before trial, the plaintiffs made a settlement demand of $150,000. The defendants offered $75,000. The day before trial, the plaintiffs made a settlement demand of $150,000 and the return of the equipment.

Specials in Evidence

$2,295 $_______ $_______ $_______

Damages

The plaintiffs sought $280,000 in damages.

Injuries

The plaintiff tenant alleged he suffered depression and psychosis and became suicidal as a result of the incident. The plaintiff manager alleged he suffered lower back problems as a result of the incident.

Other Information

The settlement award was reached approximately one year and one month after the case was filed.SETTLEMENT CONFERENCE: A settlement conference was held on May 14, 1996, before Judge Philip Sharp. It did not resolve the matter. MEDIATION: A mediation was held on April 11, 1996, before Judge Harry McCue, retired. It did not resolve the matter.


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