Kayvan Setareh, an individual, as trustee of the Pacific Capital Trust and executor of the estate of Rabi and Jalalat Setareh v. Shahram Elyaszadeh, E & E Mortgage Bankers Corporation, and Does 1 to 100
Published: Sep. 22, 2017 | Result Date: Jul. 13, 2017 | Filing Date: Oct. 19, 2015 |Case number: BC598172 Verdict – $1,807,559
Judge
Court
Los Angeles County Superior Court
Attorneys
Plaintiff
Brandon S. Reif
(Reif Law Group PC)
Richard P. Tricker
(Winget, Spadafora & Schwartzberg LLP)
Rachel D. Dardashti
(Winget Spadafora Schwartzberg)
Sima R. Salek
(Law Office of Sima Salek)
Defendant
Kevin J. Leichter
(The Leichter Firm APC)
Facts
Plaintiff Kayvan Setareh’s late father, Rabi Setareh, was a hard moneylender. In 2001, Rabi met defendant Shahram Elyaszadeh, who was also a hard moneylender individually and through his company, E&E Mortgage Bankers Corporation. Elyaszadeh and E&E are both California licensed real estate brokers.
Contentions
PLAINTIFF'S CONTENTIONS: Elyaszadeh began borrowing money from Rabi. Elyaszadeh would then lend money to his own clients, who would pay a higher interest rate than Rabi charged him. Elyaszadeh profited based on the interest rate spread. In 2006, Elyaszadeh borrowed $600,000 from Rabi and signed a written promissory note. In 2007, Elyaszadeh borrowed an additional $500,000 under the same terms as the promissory note. Elyaszadeh eventually paid off the $600,000 but did not repay the $500,000 loan.
Elyaszadeh blamed his financial misfortune on the 2008 real estate market crash and the December 2008 involuntary bankruptcy of NAMCO Capital Group Inc. Elyaszadeh admitted he did not repay the $500,000 loan arguing that it was not a loan, it was time-barred under the statute of limitations, and it violated the statute of frauds because it was not in writing and signed by Elyaszdeh.
DEFENDANTS' CONTENTIONS: Defendants denied the allegations.
Settlement Discussions
Defendants offered $25,000
Damages
Unpaid commercial loan of $500,000 plus $1,307,559 in pre-judgment interest (16 percent annualized) and late fees.
Result
The court found that the 2007 transaction was a loan as evidenced by Rabi’s check, which stated “loan” in the memo line and was deposited into defendant's bank account. The court also found that Rabi and Elyaszadeh agreed that the $500,000 loan applied the same terms of the promissory note. Plaintiff obtained a judgment in the amount of $1,807,559. The judgment reflects an unpaid commercial loan of $500,000 plus $1,307,559 in pre-judgment interest (16 percent annualized) and late fees against defendant Shahram Elyaszadeh. Plaintiffs did not recover against defendant E&E Mortgage Bankers Corp.
Other Information
Plaintiff shall recover costs according to proof and may file a motion for attorney fees.
Length
5-plus days
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