Facts

Construction Loan Company Inc. ("CLC") acted as a licensed construction loan broker and lender in various California counties. In 1991, CLC secured investments from more than 30 separate investors who put up monies for CLC to issue loans to third-party borrowers for the construction of specific properties. The investor was to receive interest on the loan. CLC was to have made the loans to the individual borrowers and CLC was to have received a percentage of the loan fee in its capacity as agent in arranging a loan.

In September 2008, CLC ceased to pay any interest to any of the investors. In October 2009, after much correspondence and communications between the investors and CLC, it was decided that a group of investors would enter into an agreement with CLC whereby all properties would be pooled, liquidated, and the sums from liquidation would be distributed on a pro rata basis. A trust was created and the terms between the trust and CLC were put to paper. Despite numerous requests that CLC comply with the terms outlined above, it was contended that CLC continuously failed and refused to perform its obligations under the subject agreement, CLC disputed this.

Result

Pursuant to the terms of the agreement, arbitration proceedings were initiated on Dec. 29, 2011. On Oct. 25, 2012, an award was issued providing for damages of $15,137,898, plus attorney's fees of $70,000. CLC was also ordered to submit to an accounting to identify all trust property. The award was conformed to a judgment on Jan. 18, 2013.