Confidential
Settlement – $75,000Judge
Court
Santa Clara Superior
Attorneys
Plaintiff
Experts
Plaintiff
Evert J. Offereins
(technical)
Defendant
Dennis M. Young
(technical)
Facts
Plaintiff and defendants were partners in various business partnerships formed for the purpose of real estate development and property holdings. Throughout the course of partnership activities over several years, plaintiff became indebted to his partners, and at one point memorialized those debts by promissory notes to each respective partner. Later, the plaintiff resigned from any active role in the management of the partnership activities. After several years, the plaintiff's debt obligations to the partners were approaching maturity. When it appeared that collection would be imminent, the plaintiff sued his partners for dissolution of the partnership and an accounting, breach of contract (the partnership agreement), breach of fiduciary duties between partners, among other theories. The defendants cross-complained for interference with the partnership operations, breach of fiduciaty duties and breach of the partnership agreements.
Settlement Discussions
In a mediation held in December 1998 before retired Judge William Fernandez, the defendants offered to accept $80,000. The plaintiff offered approximately $60,000 collectively. In February 1999, defendant No. 2 settled independently with plaintiff for $52,500, plus assignment of certain contingent claims against unrelated third parties. Shortly before trial, defendant No. 1's settlement demand increased to $100,000. The plaintiff offered to pay $40,000. At the mandatory settlement conference five days before trial, the plaintiff agreed to pay defendant No. 1 $75,000 in settlement of plaintiff's personal obligations to defendant No. 1 arising from two of their prior partnerships.
Damages
The plaintiff claimed he had lost income and the use of the income, and was entitled to punitive damages for the breach of fiduciary duties, in various amounts not fully articulated but in excess of $175,000. The defendants sought to recover the sums owed to them by plaintiff, in the amounts of approximately $93,000 per defendant.
Other Information
The settlement was reached approximately two years and eight months after the case was filed.
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