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CONFIDENTIAL

Dec. 14, 1996

Business Law
Breach of Contract
Cross-Complaint

Confidential

Settlement –  $135,000

Judge

Judith D. McConnell

Court

San Diego Superior


Attorneys

Plaintiff

Michael J. Weaver


Defendant

Gregory A. Garbacz


Facts

The plaintiff/cross-defendant was a publisher of motivational and self-help goods and services. In March 1995, the cross-defendant entered into two contracts with the defendant/cross-complainant production company whereby the cross-complainant was to produce a five-day self-help seminar of 1995 in Phoenix, Ariz for the cross-defendant. A dispute arose after the cross-complainant attempted to recover in excess of $118,000 in expenses relating to the event, that the cross-defendant contended were not covered in the contracts. The plaintiff/cross-defendant filed a declaratory relief action to determine its obligation to pay the disputed sum. The cross-complainant production company claimed the plaintiff had requested the additional services and authorized the charges, had breached the contract and attempted to defraud the production company and was required to pay the entire bill. The cross-defendant argued that the contracts were fixed-price contracts. The plaintiff/cross-defendant brought this action against the defendant/cross-complainant for declaratory relief on the contract. The defendant/cross-complainant cross-complained against the publisher for breach of contract and fraud.

Settlement Discussions

The cross-complainant made a settlement demand for $170,000. The cross-defendant made an initial offer to compromise for $75,000.

Damages

The plaintiff/cross-defendant sought a declaration of the amount, if any, of the monies owed to the defendant/cross-complainant. The cross-complainant sought in excess of $118,000 (per the cross-complainant) or $350,000 (per the cross-defendant).

Other Information

The settlement was reached approximately one year and one month after the case was filed. SETTLEMENT CONFERENCE: A settlement conference was held before Judge Todd. It did not resolve the matter. The cross-complaint was settled and the complaint was dismissed.


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