Pacific States Financial Corporation v. CSE Insurance Corporation
Published: Oct. 29, 1994 | Result Date: Oct. 6, 1994 | Filing Date: Jan. 1, 1900 |Case number: BC051722 – $2,449,000
Judge
Court
L.A. Superior Central
Attorneys
Plaintiff
Defendant
Experts
Plaintiff
Bennett S. Bibel
(technical)
Michael S. Adams
(technical)
Defendant
Fred Dopfel
(technical)
Facts
In 1990 a 7-year agent of Defendant CSE Insurance Company had a stroke, and as a result, he began borrowing from his trust account money due CSE, in an effort to keep his business afloat. In addition to borrowing approximately $100,000, he financed (in some cases without the knowledge of the insureds) insurance premiums using his home address in lieu of his business address. In September of 1991, Plaintiff Pacific States Financial Corporation informed Defendant CSE that it was "in trust" requesting a loan from them which they said they would consider, but they would have to audit its business. Defendants sent an attorney and two accountants to Defendant's business to audit the books; and upon completion of which they would not make the loan and ordered Plaintiff to sell its CSE book of business immediately. Plaintiff attempted to comply, was subsequently terminated, and on the same date was furnished an offer by Defendant CSE to purchase its book of business for one and one-half times the CSE gross commissions. The offer required written acceptance without negotiation. Plaintiff orally accepted through his attorney (which was later admitted) at which time Plaintiff turned over his complete book of business, including his files, to CSE who transferred them to another CSE agent for servicing. Several days later when Plaintiff's lawyer went to the Defendants' lawyer to finalize the documentation, he was told that the Plaintiff had misrepresented the extent of his CSE book of business and that the deal was off. This action followed and SCE Cross-complained for money due CSE under its agent's contract together with causes of action for fraud and breach of fiduciary duty.
Settlement Discussions
Plaintiff contends it demanded $750,000 and Defendants made no offer.
Damages
The nature and value of Plaintiff's claim for damages were not specified.
Result
The jury found that Plaintiff was entitled to prejudgment interest under Civil Code Section 3288 from December 23, 1991.
Other Information
Because of the misappropriation allegation, there is pending a motion to double the amount of compensatory damages awarded on that cause of action pursuant to Civil Code Section 3426.3 together with a request for an award of attorney's fees pursuant to Civil Code Section 3426.4.
Deliberation
Phase I - 3 days; Phase II - 1 hour and 45 minutes; Phase III - 1 hour
Poll
12-0
Length
3 weeks
For reprint rights or to order a copy of your photo:
Email
jeremy@reprintpros.com
for prices.
Direct dial: 949-702-5390