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CONFIDENTIAL

Feb. 22, 1997

Business Law
Breach of Contract
Failure to Pay

Confidential

Settlement –  $1,012,300

Judge

Valerie L. Baker

Court

L.A. Superior Central


Attorneys

Plaintiff

Stephen R. Onstot


Defendant

James L. Spitser


Facts

In 1987, the defendant city and the city airport officials adopted a program to help finance sound insulation projects to mitigate noise from the nearby city airport. In 1992, the program was amended to eliminate the avigation easement requirement under the program. The plaintiff, a neighboring city, applied for funding for $1.7 million to match federal grants for soundproofing residences. In 1995, the defendants reinstated the avigation easement requirement, with which the plaintiff allegedly would not comply. The defendants claimed they did not pay the plaintiff because of noncompliance. The plaintiff brought this action against the defendant city and executive director of the airport based on breach of contract and fraud theories of recovery.

Settlement Discussions

Per the defendants, the plaintiff made a settlement demand for $1.24 million. The defendants made a C.C.P. º998 offer of compromise for $1,012,298.

Damages

The plaintiff claimed that $1.7 million was due under the terms of the contract. The defendants claimed that the plaintiff's out-of-pocket expenses to qualify for the program were determined to be $1,012,298.

Other Information

The settlement was reached approximately one year and seven months after the case was filed.


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