Nippon Credit Bank, Ltd. v. 1333 North California Boulevard, et al.
Published: Feb. 4, 2003 | Result Date: Aug. 19, 2002 | Filing Date: Jan. 1, 1900 |Case number: 9602075 Verdict – $0
Judge
Court
Contra Costa Superior
Attorneys
Plaintiff
Catherine S. Meulemans
(AlvaradoSmith APC)
Defendant
Amanda Groves
(Winston & Strawn LLP)
Facts
In 1989, the plaintiff Nippon Credit Bank made a $73 million loan to the defendant, 1333 North California Boulevard, a California limited partnership, on two office buildings in Walnut Creek. The defendant Sunset Ridge was the general partner of 1333, and the defendant Sanford Diller was the president of Sunset Ridge. The 1333 North California Boulevard partnership made all loan and property tax payments for five years, until December 1944, when the partnership, under Sanford Diller's direction, determined not to pay the $358,000 property tax installment due on the 12th of that month. Nippon ultimately foreclosed on the property and took over the ownership. In 1998, a jury awarded $394,713.56, the full amount of the tax installment plus interest, to Nippon as compensatory damages for bad faith waste based on the defendant's intentional decision not to pay the December 1994 tax installment before foreclosure. The jury also awarded $8.33 million in punitive damages after finding that the failure to pay the taxes was done with malice because it was an intentional decision. The trial court remitted the punitive award to $1.6 million, which Nippon rejected. On appeal, the jury's findings of bad faith waste, compensatory damages and malice were upheld, as was the trial court's remittur of the punitive damages award. The case was remanded for retrial solely on the issue of punitive damages. (Nippon Credit Bank, Ltd. vs. 1333 North California Blvd., et al (2001) 86 Cal.App.4th 486.
Settlement Discussions
No final settlement proposals were exchanged prior to trial.
Other Information
The jury determined that no punitive damages should be awarded against any defendant. A motion for a new trial was denied on Dec. 30, 2002. The court awarded attorney fees and costs to the plaintiff based upon their status as prevailing party due to the original compensatory verdict.
Deliberation
1.25 hours
Poll
9-3
Length
six days
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