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.

CONFIDENTIAL

Aug. 14, 1999

Contracts
Breach of Contract
Corporate Transaction

Confidential

Settlement –  $14,750

Judge

Haley J. Fromholz

Court

L.A. Superior Central


Attorneys

Plaintiff

Carol McKelvy


Defendant

Lawrence Segal


Facts

In September 1996, the defendant, a film production company planning its 10-year anniversary party, entered into a written agreement with a catering company whereby the caterer would supply food for 1,500 people and drinks for 2,000 at a budgeted price. The plaintiff represented to the defendant that she was the "president" of the catering company. After the party, the caterer, through the plaintiff, sought additional money allegedly due under the written agreement for purported overtime services and additional food and alcohol provided at the party. The defendant and the caterer disagreed as to the nature, extent and associated cost of the additional charges, and whether they had been authorized by the defendant. When the defendant refused to pay the additional amount, the caterer sued the defendant, alleging that it was entitled to a "per person" fee (regardless of the amount of food and drinks provided), and that there were 4,000 people present at the party. The caterer also represented, in discovery responses, that it was the corporate entity providing the catering services. The defendant then learned that the caterer's corporate privileges were suspended for failure to pay franchise taxes. In September 1998, when the defendant threatened to file a motion for summary judgment based on the caterer's suspended corporate status, the caterer dismissed the action. Two months later, the plaintiff, an individual, brought this breach of contract action against the defendant film company, alleging the same claims as the catering company's suit, and claiming that she was doing business as the caterer under a fictitious business name.

Settlement Discussions

Before filing the complaint, the plaintiff made a settlement demand of $31,868, followed by a settlement demand of $96,000 during the litigation. At the commencement of the action, the defendant made a settlement offer of $12,500.

Damages

The plaintiff sought damages of $96,000 for the defendant's alleged breach of contract.

Other Information

The settlement was reached on the eve of the plaintiff's deposition, approximately eight months after the case was filed. A mediation was held on May 18, 1999, before Nancy Spero, resulting in no settlement.


#86770

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

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