This is the property of the Daily Journal Corporation and fully protected by copyright. It is made available only to Daily Journal subscribers for personal or collaborative purposes and may not be distributed, reproduced, modified, stored or transferred without written permission. Please click "Reprint" to order presentation-ready copies to distribute to clients or use in commercial marketing materials or for permission to post on a website. and copyright (showing year of publication) at the bottom.

Contracts
Breach of Contract
Failure to Pay

John Markley v. William Lyon Co., et al.

Published: Jul. 8, 2000 | Result Date: Apr. 1, 2000 | Filing Date: Jan. 1, 1900 |

Case number: 706072 Verdict –  $54,414,000

Judge

Raymond J. Ikola

Court

Orange Superior


Attorneys

Plaintiff

Herbert Hafif

Heidi S. Lewis

Paul Hegness


Defendant

Donald L. Morrow
(JAMS ADR)


Experts

Plaintiff

Ronald Hendricks
(technical)

Facts

In 1999, a trial between Markley and Lyon produced a stipulated settlement that placed Markely in a limited
partnerships and required the general partner, Lyon, to pay $4.1 million in attorney fees. Later, disputes
between the parties over the terms and conditions to the agreement gave rise to a breach of contract litigation.
The plaintiff asserted that the defendant breached the contract.
The defendant argued that the plaintiff, Markley, breached the contract, there was a waiver by Markely and
there was a modification agreement by Markley.
The defendant further argued that any damages awarded should be $5 million or less.

Settlement Discussions

Plaintiff asked for his full 10 percent partnership interest to be restored in partnerships free of Lyon control, together with about $12 million in attorney fees, negotiable as to form of payment and amount. The defendant made no offer. There were suggestions of replacement in the partnership, but with unacceptable restrictions, and no firm offer on attorney fees.

Deliberation

1.5 days

Poll

10-2

Length

nine days


#85231

For reprint rights or to order a copy of your photo:

Email jeremy@reprintpros.com for prices.
Direct dial: 949-702-5390