Sonoma County Land Company, Inc. v. Colonial Title Guaranty Company; Mike Salter; First American Title Insurance Company
Published: May 9, 1998 | Result Date: Feb. 25, 1959 | Filing Date: Jan. 1, 1900 |Case number: 206041 Verdict – $0
Judge
Court
Sonoma Superior
Attorneys
Plaintiff
Defendant
Facts
Plaintiff Sonoma County Land purchased a shopping center in Willits, the construction of which had not yet been completed. The seller was obliged to complete the construction of the center with funds held in escrow. The plaintiff alleged that at the close of escrow, Colonial and Salter released $105,000 more than authorized and failed to pay or advise the plaintiff of $386,000 contractor demand on escrow. The contractor sued the seller and the plaintiff and recovered a judgment in a Mendocino County action for more than $1 million. The plaintiff then sued defendants Colonial and Mike Salter as escrow holders and First American as title insurer, seeking to recover the monies paid to the contractor and litigation expenses for the failure of First American to defend the suit. The plaintiff brought this action against the defendants based on a breach of fiduciary duty theory of recovery.
Settlement Discussions
Per plaintiff, the defendants offered $200,000. Per defendants, the plaintiff demanded $2 million and the defendants offered $400,000.
Damages
The plaintiff claimed $2 million in damages.
Other Information
A settlement conference was held before Pro Tem Judges resulting in no settlement. Defendant Colonial's motion for attorney fees is pending in the sum of $56,775. On motion of defendants, the defense of unclean hands was tried to the court prior to the impaneling of a jury. After trial of 1+ days, the court ruled that the plaintiff was bound by the findings of the Mendocino County action and that the acts found in that action constituted unclean hands such that all of its claims against the defendants were barred. As a result, defendants were granted judgment. A motion is before the court as to whether the escrow contract between the plaintiff and Colonial contained an attorney fees clause and Colonial was the prevailing party. A motion for attorney fees in the sum of $56,775 is pending. A notice of appeal has been filed.
Poll
________ (#s pls.)
Length
1½ days
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