This is the property of the Daily Journal Corporation and fully protected by copyright. It is made available only to Daily Journal subscribers for personal or collaborative purposes and may not be distributed, reproduced, modified, stored or transferred without written permission. Please click "Reprint" to order presentation-ready copies to distribute to clients or use in commercial marketing materials or for permission to post on a website. and copyright (showing year of publication) at the bottom.

Business Law
Breach of Contract
Loan

Aradi Ltd.; Allied Investment and Development Inc.; CG (Texas) Inc., et al. v. Ernest T. Mansi and Raymond Null

Published: Nov. 8, 1997 | Result Date: Sep. 18, 1997 | Filing Date: Jan. 1, 1900 |

Case number: BC155189 –  $840,646

Judge

Michael M. Berger

Michael M. Berger

Court

L.A. Superior Central


Attorneys

Plaintiff

Maureen Brennan

Terry B. Bates
(Reed Smith LLP)

Terry B. Bates
(Reed Smith LLP)

Maureen Brennan


Defendant

Andrew R. Haut

Andrew R. Haut


Experts

Plaintiff

Bruce Hull
(technical)

Bruce Hull
(technical)

Defendant

Ernest Mansi
(technical)

Bruce Hamous
(technical)

Bruce Hamous
(technical)

Ernest Mansi
(technical)

Larry Waltz
(technical)

Larry Waltz
(technical)

Facts

On May 12, 1994, plaintiffs Aradi Ltd, Allied Investment & Development Inc, CG (Texas) Inc, and Dalia Ltd, entered into a written Loan Participation Agreement with defendants Ernest Mansi and Raymond Null. The agreement was designed to loan construction funds up to $900,000 to Santa Rosa Colony II, a residential property developer in Ventura County that had been suffering financial and other problems with a phase of a residential development in the Santa Rosa Valley. (One of the plaintiffs and a former defendant were partners in the development company. Defendant Mansi was the principle of one of the partners in the development company.) The Loan Participation Agreement required the plaintiffs to advance the entire amount drawn by the developer but obligated the defendants to purchase, on June 1, 1995, $450,000 of the principal balance of the loan plus accrued interest. The loan was secured by a Note and junior Deed of Trust on the real property to be developed. The Note went into default and the defendants refused to purchase their respective portion of the loan from the plaintiffs on the due date. The plaintiffs brought this action against the defendants based on a breach of contract theory of recovery.

Settlement Discussions

The plaintiffs made a C.C.P. º998 settlement demand for $300,000; that defendants abandon any interest in the underlying development and related partnerships; and that defendants dismiss with prejudice a recently filed lawsuit against one of the plaintiffs relating to the same project in which the defendants, through a wholly owned construction company, were seeking approximately $700,000 in damages as construction fees. The defendants had offered to abandon their related lawsuit and all interest in the development in return for payment by the plaintiffs to the defendants in the amount of $200,000.

Damages

The plaintiffs claimed $840,646.66 in principal and interest, plus attorney's fees and costs according to proof.

Other Information

The verdict was reached approximately ____ years and ________ months after the case was filed. A settlement conference/arbitration/mediation was held on ____/____/19___ before ____________ (name) of ______________ (affiliation) resulting in _________________. Please describe any significant legal/procedural issues which help explain the outcome. EXPERT TEST (If interesting) POST TRIAL MOTIONS _____________. COMMENTS (Judge/Arbitration/Mediator)

Length

three days


#79864

For reprint rights or to order a copy of your photo:

Email jeremy@reprintpros.com for prices.
Direct dial: 949-702-5390