California Pacific Medical Center v. Copy-Mor, Inc.
Published: Feb. 25, 1995 | Result Date: Nov. 15, 1994 | Filing Date: Jan. 1, 1900 |Case number: C921740CW – $683,000
Judge
Court
USDC Northern
Attorneys
Plaintiff
Defendant
Experts
Plaintiff
Gerry Keeler
(technical)
Defendant
G. Stephen Jizmagian
(technical)
Facts
Plaintiff California Pacific Medical Center entered into a 5-year requirements contract with Defendant Copy-Mor, Inc. The contract commenced January 1, 1991, and was to run until December 31, 1995. Copy-Mor, Inc., produces forms for use at various companies and institutions including hospitals such as California Pacific Medical Center. The contract called for a price reduction in forms to average 5 percent less than what California Pacific Medical Center paid its previous vendor. In the event that this 5 percent goal was not achieved, California Pacific Medical Center was entitled to a $50,000 rebate. The contract also called for various service requirements to be performed by Copy-Mor, Inc., specifically forms consolidation and inventory control. These service requirements were to be met by Copy-Mor, Inc., through an on-site representative at California Pacific Medical Center. On May 13, 1992, California Pacific Medical Center terminated the contract and sued Copy-Mor, Inc., for breach of contract and fraud.
Settlement Discussions
Plaintiff contends that it offered to dismiss the complaint and pay Copy-Mor, Inc., $180,000 on its cross- complaint, but that Copy-Mor, Inc., demanded $1,500,000 on its cross-complaint.
Damages
California Pacific Medical Center asked the jury to award $283,000 in compensatory damages for overcharges and $350,000 in punitive damages for fraud. On their cross-complaint, Copy-Mor, Inc., sought compensatory damages in the amount of approximately $484,000 for unpaid invoices (California Pacific Medical Center did not dispute the existence of these invoices, but claimed that they should be reduced 25 percent based on its expert analysis that Copy-Mor, Inc., overcharged the hospital for forms.) Copy-Mor, Inc., further claimed entitlement to future lost profits estimated at $465,000 per year for 3 1/2 years, for a total of $1,627,500.
Result
The jury found that Copy-Mor, Inc., breached its contract with California Pacific Medical Center and committed fraud. The jury further found that Defendants Phillip and Leonard Steinberg committed fraud. The jury also found that California Medical Center did not breach its contract with Copy-Mor, Inc., when it terminated the agreement with Defendant Copy-Mor, Inc., before the expiration of the contract's 5-year period. The jury finally found that Copy-Mor, Inc., overcharged for goods sold to California Pacific Medical Center and awarded Copy-Mor, Inc., only the reasonable value of the goods sold to California Pacific Medical Center (as opposed to the prices invoiced by Copy-Mor, Inc.).
Deliberation
1 day
Poll
8-0
Length
2 weeks
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