DL&C Cartune, Inc.; Dennis Lesavich; William Houlihan; Robert Furman v. Shanwar, Inc; Anwar Menerally and Precision Tune, Inc.
Published: May 24, 1997 | Result Date: Apr. 9, 1997 | Filing Date: Jan. 1, 1900 |Case number: 696233 – $71,240
Judge
Court
San Diego Superior
Attorneys
Plaintiff
Defendant
Experts
Plaintiff
Thomas Lambert
(technical)
James Van Blarium
(technical)
Facts
Plaintiff Dennis Lesavich, his company DL&C Cartune Inc., William Houlihan and Robert Furman, each purchased Precision Tune franchise after meeting with defendant Anwar Meherally, corporate principal for defendant Shanwar Inc. The plaintiffs claimed the defendants failed to disclose to Houlihan and Furman that their sites were approved by Precision Tune in violation of its internal site selection guidelines. Plaintiff Lesavich claimed that the defendants failed to disclose the financial condition and loss history of the store he purchased from defendant Shanwar. The plaintiffs operated their stores for a period of time. The businesses were not profitable. The plaintiffs each entered into an agreements with Meherally and Shanwar Inc. to take back the stores under certain conditions. These conditions were a matter of dispute between the parties. The plaintiffs claimed that as part of the store transfers, Meherally promised to make loan payments on the plaintiff's stores. The plaintiffs claimed defendant Meherally terminated the loan payments, and their lenders foreclosed against or sold the security. The plaintiffs brought this action against Meherally, Shanwar and Precision Tune Inc. based on violations of California franchise investment law, fraud, breach of contract, rescission an restitution, breach of the implied covenant of good faith and fair dealing, conversion, fraudulent inducement of agreement for transfer of possession and declaratory relief theories of recovery. The defendants bought a cross-complaint against the plaintiffs to collect on the loan made for the purchase of one store. The cross-complaint was dismissed prior to trial.
Settlement Discussions
Plaintiff DL&C Cartune Inc. and plaintiff Lesavich made a settlement demand of $125,000. Plaintiff Houlihan made a settlement demand of $225,000. Plaintiff Furman made a settlement demand of $250,000. The defendants made various structured settlement offers with cash of less than $50,000 and agreements for future payments.
Damages
Plaintiff DL&C Cartune Inc. and plaintiff Lesavich claimed $225,000 in damages. Plaintiff Houlihan claimed $350,000. Plaintiff Furman claimed $300,000.
Other Information
The jury found that defendant Shanwar Inc. defrauded plaintiff Houlihan in the purchase of his franchise. During trial, the defendants stipulated that Shanwar was Precision Tune's agent. POST TRIAL MOTIONS: Plaintiff's counsel indicated that the plaintiffs will file motions for new trial and for JNOV to request that judgment be entered against defendant Precision Tune, and for award of fraud damages.
Deliberation
4 days
Poll
varied
Length
10 days
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