Brenda Wilke v. James A. Zito, et al.
Published: Apr. 29, 1995 | Result Date: Mar. 23, 1995 | Filing Date: Jan. 1, 1900 |Case number: 674369 – $65,000
Judge
Court
San Diego Superior
Attorneys
Plaintiff
Defendant
Grant G. Teeple
(Teeple Hall LLP)
Experts
Plaintiff
T. Michael Reed
(technical)
Diane L. Karpman
(technical)
Defendant
Alan K. Brubaker
(Wingert, Grebing, Brubaker & Juskie LLP)
(technical)
Lowell R. Fuselier
(technical)
Steven R. Denton
(Judicate West )
(technical)
Facts
Plaintiff Brenda Wilke retained attorney James A. Zito and James M. Kinder to represent her for injuries and damages which she sustained in an automobile accident on August 17, 1990. Plaintiff was unaware that Defendant Kinder was not an attorney until she received a letter from Defendant Zito about one week after she hired his office. The letter directed Plaintiff to talk with Kinder. Plaintiff claimed that she believed that Kinder was her attorney because Kinder was responsible for handling her claim and because she never met or spoke with Zito. Plaintiff further claimed she was told that if she retained Kinder's office, he could get her a rental car from Defendant Rainbow Rent-A-Car at no cost because the insurance company would pay for the rental; that he also told her he would "speed process" her case; and that at one point, when Plaintiff attempted to return the rental car, Kinder convinced her that she was not responsible for the bill and that she would hurt her case by returning the car. When the underlying case settled over a year later, the rental bill was close to $14,000 (the rental company reduced the bill to $9,954) and Plaintiff paid this bill from her September 10, 1991, underlying settlement for $15,300 (Plaintiff received $1,000). The check stub from the insurance company indicated that $6,000 was paid for property damages while $9,300 was paid for bodily injury; Kinder allegedly never disclosed this to Plaintiff. Kinder's notes reflect that he directed $10,000 to be paid to the rental company and $5,300 to be assigned to the bodily injury portion of the claim. The check for the rental car was signed over to Kinder who then allegedly purchased a new Jeep. That Jeep is registered to Rainbow Rent-A-Car, but was only rented out once over the last 4 years. Kinder arranged for Plaintiff's car to be repaired at All-American Paint & Body. Plaintiff alleged that she never authorized the repairs and that the car was nevertheless repaired. Zito claimed that he assumed someone in his office authorized the repairs. The insurance company disputed liability and Plaintiff did not have the $3,500 to get her car out of the shop. In June of 1991, the repair shop attempted to lien sale the car, at which time Toyota Motor Credit stepped in and repossessed the car in order to protect its collateral. Plaintiff made her car payments until April of 1991 when Kinder allegedly told her that she would never get her car back and that she should, therefore, not bother making the payments. Plaintiff still owes Toyota Motor Credit approximately $2,700. Kinder and Zito began doing business together in April 1990 when Zito responded to an advertisement (Kinder had to have an attorney supervise him because he was no longer able to practice law). Kinder's company, Defendant James M. Kinder, Inc., received $18,000 per week while Zito received $1,300 per week plus use of a Mercedes owned by Rainbow Rent-A-Car at a charge of one dollar per year (as compared to the normal rate of $75 per day). James A. Zito settled out early for $40,000; Plaintiff proceeded to trial against the remaining Defendants.
Settlement Discussions
Plaintiff contends that she demanded $125,000 total from all Defendants and that the most Defendants offered was $50,000 combined.
Damages
Among other things, an undisclosed amount for emotional distress damages; $2,700 owed to Toyota Motor Credit; $2,000 to $3,000 Plaintiff should have netted from the underlying personal injury case; $1,000 down payment for car.
Result
The jury found James M. Kinder, James M. Kinder, Inc., Karen Gramly Kinder, and Rainbow Rent-A-Car liable for fraud. It found that James Kinder was the alter ego of Rainbow Rent-A-Car and James M. Kinder, Inc. It also found that Karen Kinder was the alter ego of Rainbow Rent-A-Car.
Other Information
This case was filed on March 4, 1994; one year before this result.
Deliberation
8 hours compensatory, 4 hours punitives
Poll
varied
Length
1 month
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