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Business Law
Fraud and Negligent Misrepresentation

Jayant and Kanta Devani v. Ara and Shakeh Poladian

Published: Jun. 25, 1994 | Result Date: Jun. 9, 1994 | Filing Date: Jan. 1, 1900 |

Case number: BC013582 –  $169,684

Judge

Joseph R. Kalin

Court

L.A. Superior Central


Attorneys

Plaintiff

Leslie S. McAfee
(Law Offices of Leslie S. McAfee)


Defendant

Sherwin C. Edelberg


Experts

Plaintiff

Karl S. Reinecker
(technical)

Facts

On March 10, 1990, Plaintiffs Jayant Devani and Kanta Devani purchased Defendants' (Dr. Ara Poladian and Shakeh Poladian) stationery store for $126,000. Defendant Dr. Poladian was the sole signatory on the 10-year agreement. The business license and seller's permit were in his and his Defendant sister's, Shakeh, name and reflected a "general partnership." The IRS tax documents for the first 2 years (1987 and 1988) were in Defendant Dr. Poladian's name and business name only. The name was changed to reflect only the sister's name (and business name) at the time a decision was made to sell the business.

Settlement Discussions

Plaintiffs contend they made a 998 demand in the amount of $90,000 and Defendants offered $5,000.

Damages

$95,000 payment of nonexistent premium; $82,000 lost profit; $64,000 negative cash flow.

Deliberation

2 days

Poll

12-0

Length

11 days


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