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Contracts
Accounting
Constructive Trust, Surety Claim

Patrick Flannery v. Andrea Murray, American Contractors Indemnity Company, and Does 1 through 100, inclusive

Published: Oct. 27, 2017 | Result Date: Sep. 6, 2017 | Filing Date: Dec. 31, 2014 |

Case number: PC056142 Bench Decision –  Defense

Judge

Stephen P. Pfahler

Court

Los Angeles County Superior Court


Attorneys

Plaintiff

Joseph Daneshrad
(Daneshrad Law Firm APC) for plaintiff/cross-defendant Patrick Flannery


Defendant

Philip Kaufler
(Law Offices of Philip Kaufler) for defendant/cross-complainant Andrea Murray and cross-defendant American Contractors


Facts

Plaintiff Patrick Flannery filed suit against defendant Andrea Murray in relation to a horse boarding business owned by Flannery and Murray.

Murray filed a cross-claim for losses related to the business.

Contentions

PLAINTIFF'S CONTENTIONS: Plaintiff claimed that Murray wrongfully ousted him from his own ranch for approximately four years by obtaining several domestic violence and civil restraining orders against him. The ranch had a horse boarding business and Flannery claimed that Murray had him ousted so she could abscond with four years of profits.

DEFENDANTS' CONTENTIONS: Defendant claimed the ranch was owned 50/50 by way of an earlier palimony judgment.

Murray's cross-claim was for an accounting contending that there were losses of $326,958 in the horse boarding business, and that as a 50/50 partner, that Flannery was responsible for 50 percent of those losses, which totaled $163,479.

Settlement Discussions

Plaintiff demanded 75 percent of the ranch in exchange for the dismissal of the action. Defendant offered to give plaintiff 62.5 percent (approximately $200,000) in exchange for the dismissal of the action, and plaintiff would give up his right to an appeal in the palimony case (worth $1.2 million dollars), and plaintiff would give up his right to claim damages for waste on the property worth $500,000.

Damages

Flannery's claim at trial was that Murray owed him profits and one-half the value of the business. His aggregate claim was for $1,650,000. Flannery further claimed that Murray breached her fiduciary duties and he sought imposition of a constructive trust and unjust enrichment.

Result

In the first phase of trial, the jury found in favor of Murray and ordered the ranch sold through partition. In the second phase of trial, the jury rendered a defense verdict on all claims. The jury also found in favor of Murray on her cross-claim for an accounting and awarded $163,479, subject to the trial court's own determination as to this equitable claim. In the third phase of trial, the court found in favor of defendants Murray and American Contractors on claims of imposition of a constructive trust and surety claim.


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