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Contracts
Breach of Contract
Fraud

Giordano v. Rosa

Published: Dec. 27, 1997 | Result Date: Dec. 9, 1997 | Filing Date: Jan. 1, 1900 |

Case number: LC029423 –  $200,570

Judge

Fred Rimerman

Court

L.A. Superior Van Nuys


Attorneys

Plaintiff

Thomas P. Bleau
(Bleau Fox APLC)


Defendant

John Michael Gerro


Experts

Plaintiff

Barbara Gottlieb
(technical)

Defendant

Bernard Golditch
(technical)

Facts

In May, 1993, plaintiff, Maria Giordano, and defendants, Tre Rosa Corporation and Joe Rosa, entered into a joint venture agreement to operate a deli out of defendant's market, doing business as The Beverly Glen Market Place, in the Beverly Glen Center in Bel Air, California. The parties agreed to provide food products and merchandise to the joint venture at cost and split 50/50 all of the profits generated by sales from the deli. Plaintiff also allowed defendants to advertise the deli using plaintiff's well known name, "Pasta Maria", in the food and restaurant business. Defendants agreed that in the event the joint venture was dissolved, plaintiff would retain the rights to all of her recipes and that defendants would discontinue selling plaintiff's pasta salads. From May 1993 to May 1994, defendants rang up all sales from the deli through the market's registers, despite plaintiff's repeated requests to install a separate register for the deli, and plaintiff became aware of numerous incidents where food items actually sold by the deli had been rung up as grocery items by defendants' cashiers. As a result, sales for the deli were being understated. Plaintiff also learned that certain expense items for the market were being improperly paid for by revenue from the joint venture. Although defendants' market was making a significant profit during the same time period, defendants advised plaintiff that the deli was losing money and refused to distribute any revenue to plaintiff. In May 1994, plaintiff walked out of the deli and dissolved the joint venture. Plaintiff brought a lawsuit against defendants in October 1994 alleging breach of contract, breach of the covenant of good faith and fair dealing, fraud and conversion and demanded an accounting. Defendants filed a cross-complaint against plaintiff for breach of contract, breach of the covenant of good faith and fair dealing, fraud, interference with prospective economic advantage and defamation.

Settlement Discussions

The plaintiff made a C.C.P. º998 settlement demand for $50,000. The defendant made no offer.

Other Information

The verdict reached approximately three years and two months after the case was filed.

Deliberation

3+ hours

Poll

12-0 (liability) 10-2 (damages)

Length

six days


#87208

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