Confidential
Settlement – $50,000Judge
Court
San Diego Superior
Attorneys
Plaintiff
Defendant
Facts
On or about April 20, 1992, the defendants made, executed and delivered a promissory note in the principal sum of $50,000 to Bank of San Diego. Defendants defaulted on the note and four months later, Bank of San Diego was declared insolvent by the Superintendent of Banks for the State of California. The Federal Deposit Insurance Corporation was appointed Receiver of Bank of San Diego. On June 26, 1996, the FDIC assigned all its rights, title and interest in the Promissory Note to plaintiff. The plaintiff a Massachusetts corporation, originally entered into a settlement agreement with the defendants in September of 1996 which the defendants immediately defaulted under. The plaintiff then brought this action against the defendants for breach of contract under the Note. The parties reached a settlement whereby defendants agreed to stipulate to judgment in the sum of $50,000 with interest at the legal rate of 10 percent per annum, with interest payable to plaintiff by defendants each month. The defendants also agreed to stipulate to a charging order with regard to a limited liability company member interest held by the defendants. The limited liability company owns real property in San Diego County which would be sold in the next twelve months to the City of San Diego. The sale of the real property was to generate sufficient funds to satisfy the judgment under the charging order. The plaintiff brought this action against the defendants based on breach of contract and common count.
Settlement Discussions
The defendants made an initial offer to settle for $18,500, then increased to $40,000 in the form of a stipulated judgment. The plaintiff made an initial settlement demand for $50,000 in one lump sum.
Damages
The plaintiff claimed damages in the principal sum of $45,643.54 and accrued interest of $7,234.77.
Other Information
The settlement was reached approximately three months after the case filed. In February 1999, the limited liability company submitted payment to the plaintiff in the sum of $50,000 under the charging order.
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