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Contracts
Breach of Contract
Right Of First Refusal

Joseph M. Girard v. Chevron Corporation; Chevron U.S.A., Inc.

Published: May 30, 1998 | Result Date: Apr. 1, 1998 | Filing Date: Jan. 1, 1900 |

Case number: CIV169838 Bench Decision –  $400,000

Judge

William L. Peck

Court

Ventura Superior


Attorneys

Plaintiff

David W. Tredway


Defendant

John J. Flynn III


Experts

Plaintiff

Barbara C. Luna
(technical)

Defendant

Harry B. Holzhauer
(technical)

Facts

In 1995, plaintiff Joseph Girard received a Letter of Intent from In-N-Out Burger, a fast-food restaurant, for a long-term ground lease of the plaintiff's corner lot at a major intersection upon termination of the existing lease to defendant Chevron in 1998. Chevron exercised its right of first refusal to lease the property starting in 1998 on the terms of the In-N-Out Burger Letter of Intent. Chevron planned to jointly redevelop the site with McDonald's. When McDonald's backed out several months later, Chevron repudiated its exercise of its right of first refusal, based on the terms and conditions of the Letter of Intent. The plaintiff eventually leased the property to a tenant it considered to be less credit worthy, at a lower annual rent. The plaintiff brought this action against the defendants Chevron Corporation and Chevron U.S.A. Inc. based on a breach of contract, breach of the covenant of good faith and fair dealing, and interference with prospective economic advantage.

Settlement Discussions

The plaintiff made a settlement demand for $600,000. Per defendant, the plaintiff's last demand was $740,000. The defendants made a C.C.P. º998 offer of compromise for $100,000.

Damages

The plaintiff claimed a discounted present value of income on the lease under the economic terms of the In-N-Out Letter of Intent, less discounted present value of income on the lease actually entered into. (Per defendant, $1.2 million).

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 ____________ .

Length

seven days (bench trial)


#80028

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