Anchor Publications, Inc. and Scott Weikel v. Farmer Publications, Leisure World Laguna Hills et al.
Published: Jan. 3, 1998 | Result Date: Dec. 19, 1997 | Filing Date: Jan. 1, 1900 |Case number: 762231 – $1,143,000
Judge
Court
Orange Superior
Attorneys
Plaintiff
James M. Trush
(Trush Law Office)
Defendant
William R. Hart
(Hart King APC)
Experts
Plaintiff
Jaime Holmes
(technical)
John A. Stillman
(technical)
Andrew Ippoliti
(medical)
Thomas Swanson
(medical)
Defendant
Joseph Hazlett
(technical)
Facts
Since 1966, plaintiff Anchor Publications Inc. published a specialty telephone directory that was distributed for free at Leisure World Laguna Hills, a senior citizens community. Plaintiff Anchor claimed that in the early 1980s, as a result of an appellate court decision in Laguna Publishing Company v. Golden Rain Foundation of Laguna Hills (1982) 131 Cal.App.3d 816, 182 Cal.Rptr. 813, the corporate homeowners association which governs Leisure World imposed a "subscription only" delivery policy upon plaintiff. Thereafter, plaintiff Anchor alleged it compiled subscriptions from the residents of defendant Leisure for the delivery of its telephone directory. In the summer of 1995, two employees of plaintiff Anchor (independent contractors per defendant Leisure), Clare Twedt and Eric Tencamp, operating under the business name, Farmer Publications, approached Leisure to be considered as the "official" publisher of a Leisure World telephone directory in exchange for a monetary royalty to be paid to defendant Leisure. Defendant Leisure then began a formal bidding process, which plaintiff Anchor claimed was a result of defendant Farmer's efforts to be designated the official publisher. After both plaintiff Anchor and defendant Farmer submitted bids, defendant Leisure selected Farmer as the official publisher based on recommendations of two sub-committees and a unanimous vote of the board of directors. However, plaintiff Anchor claimed that Farmer's selection was based on disability discrimination against plaintiff's publisher, Scott Weikel, who suffered from debilitating Crohn's disease. Thereafter, plaintiff successfully obtained a preliminary injunction based in part on its claim that defendant Leisure granted defendant Farmer an exemption from the "subscription only" delivery policy. At trial, the plaintiffs proceeded on causes of action including conversion, theft of trade secrets, fraud (concealment), false advertising, unfair business practices and intentional and negligent interference with contractual relations and prospective business advantage, among other causes of action. At the close of plaintiff's evidence, retired superior court judge Ragnar Engebretsen, dismissed the Leisure defendants and dismissed plaintiff Weikel's disability discrimination claims. The matter proceeded to verdict against the Farmer defendants (including Twedt and Tencamp) on four remaining causes of action, including conversion, fraud by concealment, false advertising, and unfair business practices.
Settlement Discussions
The plaintiff made a settlement demand on the Leisure World defendants for $800,000. The Leisure World defendants made a C.C.P. º998 offer of compromise for $100 each (disputed by plaintiff) and a non-statutory offer prior to trial of $25,000.
Damages
Plaintiff Anchor claimed business damages of approximately $1.3 million. Plaintiff Weikel claimed approximately $325,000 in medical expenses and lost earnings plus pain and suffering.
Injuries
Plaintiff Weikel alleged damages for emotional distress, including pain and suffering, medical expenses and loss of earnings (dismissed by nonsuit).
Result
On the causes of action submitted to the jury against the Farmer defendants, the jury rendered unanimous verdicts in favor of plaintiff on all special verdict questions, including findings of fraud, oppression, and malice on the causes of action for conversion, fraud by concealment, and false advertising. Per defendant Leisure World, the punitive damages claim was dismissed. Defendants report the plaintiff must now choose only one of the four damage awards to be submitted to the trial court as the final judgment. Per defendant Farmer, plaintiff must submit a proper damage statement for approval by the judge with the elected remedy so indicated. Defendants Farmer, Twedt and Tencamp intend to move for JNOV and new trial following entry of judgment on the basis that no damages were proved by plaintiff. Plaintiff intends to appeal the dismissal of Weikel's discrimination claims and the granting of defendant Leisure's motion for nonsuit.
Other Information
The verdict was reached approximately one year and seven months after the case was filed. A settlement conference was held on Oct. 3, 1997, before a judge pro tem, resulting in no settlement.
Deliberation
two days
Poll
12-0
Length
Six weeks
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