Confidential
Settlement – $100,000Judge
Court
L.A. Superior Central
Attorneys
Plaintiff
Defendant
Facts
In September 1993, defendant Corporation and its individual principal signed a five-year-commercial lease and guaranty with plaintiff Landlord. The corporate tenant/guarantor had the Landlord's approval to sublease the property but only with a continuation of the guaranty. The subtenant defaulted, and both the tenant and subtenant filed for bankruptcy. The plaintiff brought this action for unpaid rent against the individual guarantor based on a breach of contract theory of recovery. The plaintiff contended this was a straightforward commercial lease and guarantee and that defendant had no defenses. The plaintiff also contended it had a new tenant that resulted in some damage mitigation. The defendant contended the Landlord failed to mitigate its damages aggressively. The defendant futher contended plaintiff failed to timely notify the individual guarantor of the subtenant's default and that defendant was now financially unable to pay on the guarantee.
Settlement Discussions
Settlement discussions were not disclosed.
Damages
The plaintiff claimed $185,000 in damages.
Other Information
The settlement was reach approximately one year and five months after the case was filed. A mediation was held on Dec. 15, 1997, before Nancy Spero of Dispute Resolution, resulting in the reported settlement. Per plaintiff, its ability to mitigate its damages partially explained the outcome. Defense counsel has filed a motion to be relieved as counsel.
Length
two hours
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