Katherine Russel v. Plakmaster, et al.
Published: May 27, 1995 | Result Date: Apr. 17, 1995 | Filing Date: Jan. 1, 1900 |Case number: 674757 – $300,000
Judge
Court
San Diego Superior
Attorneys
Plaintiff
Defendant
Facts
In May of 1992, Defendant Ronald Fletcher helped arrange for Plaintiff Katherine Russel to obtain a $170,000 loan; with the proceeds, Plaintiff made a $100,000 loan to Defendant Plakmaster, Inc., which had been organized by Defendant Fletcher to research and develop new oral hygiene products. Plaintiff secured the $170,000 loan with a deed of trust on her commercial property; and Plakmaster allegedly agreed to make the interest payments. Three days after Plaintiff's loan to Plakmaster, Fletcher transferred approximately 61,000 of the loan money to his personal bank account and $8,000 to a different corporation, wholly owned by Fletcher. Plakmaster then fell behind on its obligation to make the payments on Plaintiff's $170,000 loan; and the lender prepared to foreclose on her property. Plaintiff was forced to file for bankruptcy in order to avert a foreclosure on her property.
Settlement Discussions
Offers and demands, exchanged prior to this result, were not disclosed.
Damages
Plaintiff claimed: $170,000 plus interest, contract damages; $320,000 to $750,000 loss of commercial property; and $12,000 attorney fees and bankruptcy costs. Plaintiff asked the jury to award $350,000 to $750,000. Defendant asked the jury for a defense verdict.
Other Information
The Court found that Fletcher was the alter ego of Plakmaster, Inc., and awarded Plaintiff an additional $214,000 for breach of contract damages which had previously been determined upon Plaintiff's motion for summary adjudication against Plakmaster, Inc.
Deliberation
5 hours
Poll
9-3 intentional and negligent misrepresentation; 10-2 concealment; 12-0 no punitive damages
Length
4.5 days
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