City and County of San Francisco, People of the State of California v. Rehab Financial Corporation, Belinda Exon, Barbara Wood, Cheryl Isaacson, Gayle Bloomingdale, and Does 1 through 100
Published: Jun. 22, 2013 | Result Date: Dec. 4, 2012 | Filing Date: Jan. 1, 1900 |Case number: CIV506113 Settlement – $164,099
Court
San Mateo Superior
Attorneys
Plaintiff
Cheryl S. Adams
(Office of the San Francisco City Attorney)
Dennis J. Herrera
(San Francisco Public Utilities Commission)
Donald P. Margolis
(Office of the City Attorney)
Defendant
Facts
The City and County of San Francisco extended loans and awarded grants to homeowners and landlords of buildings of low-income tenants via certain programs. In doing so, San Francisco engaged the services of Rehab Financial Corporation to act as an escrow and loan servicing agent for the programs.
On March 30, 2010, San Francisco filed a lawsuit against Rehab Financial, and its officers, Gayle Bloomingdale and Barbara Wood.
Contentions
PLAINTIFF'S CONTENTIONS:
The City alleged that Rehab engaged in a scheme whereby its employees stole and threatened to steal at least $1 million in the City's funds by taking the funds from bank accounts defendants had control over. Specifically, San Francisco alleged causes of action for conversion, breach of fiduciary duty, and unfair competition.
DEFENDANT'S CONTENTIONS:
Defendants argued that the alleged damages suffered were caused by the acts and negligence of plaintiff or by third parties.
Result
Under the parties' settlement, the City will receive $164,099.
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