Misaki Food Co., a California Corporation aka Golden Wok Sunnyvale, Tiffany Li, Kam Li v. Kao-Chen Inc., a California Corp. aka Golden Wok Restaurant
Published: Dec. 3, 2002 | Result Date: Dec. 6, 2001 | Filing Date: Jan. 1, 1900 |Case number: 78672 Verdict – $20,000
Judge
Court
Santa Clara Superior
Attorneys
Plaintiff
Defendant
Experts
Plaintiff
John P. Sutton
(technical)
Facts
The plaintiffs, Tiffany and Kam Li as individuals and as Misaki Food Co. acquired a restaurant from the
defendants. The purchase price was $165,000. The contract allowed for the use of the name, "Golden Wok,"
goodwill and a non-compete clause.
The plaintiffs alleged that the defendant breached the contract and sued for unfair competition, fraud and
rescission.
The defendants cross-complained for loss of business and invasion of its territories.
Damages
The plaintiffs sought to recover loss of business and asked that the entire original transaction for the sale of the restaurant Sunnyvale Golden Wok be rescinded, based on the plaintiffsÆ allegations of franchise law violations. The plaintiffs also claimed in excess of $250,000 in compensatory damages for unfair competition, breach of contract and fraud, plus punitive damages. The defendants cross-complained for loss of business due to the plaintiffÆs alleged invasion of their territories.
Other Information
The jury awarded the plaintiffs $20,000 but denied plaintiffsÆ request for rescission of the restaurant purchase contract. No liability was found on the cross-complaint. The plaintiffs were awarded $30,000 in attorneyÆs fees and costs.
Deliberation
four hours
Length
eight days
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