Confidential
Published: Aug. 31, 2000 | Result Date: Apr. 22, 2000 |Case number: C468280 Bench Decision – $8,692,860
Judge
Court
L.A. Superior Central
Attorneys
Plaintiff
Facts
The plaintiff pharmaceutical company was formed in 1979 to enter a long-term written contract with defendant hospital. The plaintiff would provide all inpatient and outpatient medications at the hospital for 45 percent of inpatient receipts and 100 percent of outpatient receipts. The contract had an effective starting date of Sept. 28, 1978, an initial 5-year term and three option periods. The defendant breached the contract on Aug. 8, 1983. Following a bench trial, the hospital and its successor, Century Medicorp, were found liable for the breach. Damages of $1.5 million, plus pre-judgment interest, were awarded for the first option period, but denied for the final two option periods. In December 1997, the Court of Appeal directed further proceedings to award plaintiff lost profits for the final two option periods, and to adjust outpatient sales damages. A bench trial on those issues was conducted in December 1999.
Settlement Discussions
The plaintiffs made a demand of $4.5 million and defendants made an offer of $350,000.
Damages
The plaintiff claimed damages for $2,719,300 (second option period lost profits); $2,276,719 (third option period lost profits); $110,050 (adjustment to outpatient sales) and $2,132,887 (prejudgment interest)
Injuries
The plaintiff claimed the following injuries: 1) second option period lost profits of $2,719,300; 2) third option period lost profits of $2,007,079; 3) adjustment to outpatient sales damages of $110,050; 4) interest on prior awards of $1,030,177.
Other Information
Previously, the plaintiff recovered $1,365,000 in pre-breach damages; $166,500 on a promissory note made at the time the contract was entered into, and $185,000 in C.C.P. Section 128.5 sanctions due to major litigation abuse by the hospital in the course of the 1989 trial.
For reprint rights or to order a copy of your photo:
Email
jeremy@reprintpros.com
for prices.
Direct dial: 949-702-5390