James F. and Jeanne Meyer v. Coatings/Composites Inc., Albert J. Berger, Sauereisen Cements Company, Bertrand Dorfman, Phyllis Berger, et al.
Published: Nov. 5, 1994 | Result Date: Oct. 25, 1994 | Filing Date: Jan. 1, 1900 |Case number: BC072676 – $1,025,730
Judge
Court
L.A. Superior Central
Attorneys
Plaintiff
Francis T. Donohue III
(Voss, Cook & Thel LLP)
Defendant
Experts
Defendant
Maier N. Rosenberg
(technical)
Facts
On 1980, at the insistence of Plaintiff Jim Meyer's boss, Defendant Albert Berger, James and Jeanne Meyer took a mortgage out on their home to lend the money to Berger's company (Con/Chem) that was having a cash flow problem. The company made the monthly payments on the mortgage through 1987, when another crisis occurred that required Meyer to get a second mortgage to lend money to the company; making a total $80,000 that was lent to the company, which Con/Chem agreed in writing to repay. Also in 1987 Con/Chem transferred its assets to Coatings/Composites, a subsidiary corporation, in return for stock of Coatings and for Coatings' agreement to assume certain of Con/Chem's liabilities. Con/Chem was then placed in bankruptcy. For 5 years (from 1987 to 1992) Meyer was told that his loans to Con/Chem were among the debts assumed by Coatings and for over 5 years, Coatings made all payments on the loans, until November 1992. In December of 1992, Coatings sold its assets and then refused to pay the remaining balance on the loans.
Settlement Discussions
Plaintiffs contend their demand was $150,000 (inclusive of costs and fees) one month prior to trial and $185,000 at the start of trial; and Defendants offered $150,000 while the jury was deliberating.
Damages
$73,772 general damages; $277,500 emotional distress; $674,000 punitive damages.
Result
The jury found that the Defendants had fraudulently transferred money out of Coatings with the intent to delay, hinder, and defraud creditors such as the Meyers; that Coatings breached an agreement to repay the loan; and that Defendant intentionally inflicted emotional distress on Plaintiffs.
Deliberation
3 days
Poll
12-0
Length
11 days
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