State of California v. Sutta Company, et al.
Published: Jan. 27, 1996 | Result Date: Oct. 30, 1995 | Filing Date: Jan. 1, 1900 |Case number: 7399301 – $449,715
Court
Alameda Superior
Attorneys
Plaintiff
Defendant
Basil S. Shiber
(Miller Starr & Regalia)
Experts
Plaintiff
Arlen Mills
(technical)
William Pasich
(technical)
Defendant
Jax Kneppers
(technical)
Jeffrey Martin
(technical)
Alfredo A. Sadun M.D.
(technical)
Facts
The defendant, Sutta Company, was a tenant at 3211 and 3401 Wood Street, Oakland since 1989. Sutta Company operated a paper recycling plant at the Wood Street location. In late 1994/early 1995, Sutta Company relocated its paper recycling business to Third Street because the plaintiff, State of California, acquired the Wood Street property for the Cypress re-build. Due to use permit restrictions, Sutta Company's operating costs were higher at the Third Street location but Sutta's income was also higher. The State of California brought this action to acquire the property and to determine compensation for the taking. Payment to the property owners was made in a separate settlement before trial.
Settlement Discussions
Sutta Company demanded $850,000 from the State of California, which offered $375,000.
Damages
Sutta Company asked the jury to award it $1,500,000 (loss of goodwill). Sutta Company's expert testified that the loss of goodwill due to relocation from Wood Street to Third Street was a maximum of $1,500,000, primarily due to increased operating costs at the new location arising from use permit restrictions. The increase in income at the new location was due to an improved paper market and would have occurred at the old location). The State of California asked the jury to limit the award to $213,000 (The State of California's expert testified that Sutta's income was substantially higher at new location, the operation was substantially improved, and the loss of goodwill attributable to the condemnation was a maximum of $213,000).
Other Information
The verdict was reached approximately one year and two months, after the case was filed. A motion for a New Trial on the issue of the temporary goodwill claim is pending. Sutta Company's motion for litigation expenses is also pending. Statutory relocation and re-establishment payments are the subject of a separate administrative claim.
Deliberation
2+ days
Poll
10-2
Length
15 days
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