Wells Fargo Bank, N.A. v. Douglas P. Brignole, et al.
Published: Jan. 24, 1998 | Result Date: Oct. 3, 1997 | Filing Date: Jan. 1, 1900 |Case number: GC015342 Bench Verdict – $0
Judge
Court
L.A. Superior Pasadena
Attorneys
Plaintiff
Defendant
Wayne S. Kreger
(Law Offices of Wayne S. Kreger PA)
Facts
On Oct. 30, 1984, defendant Douglas P. Brignole, formed a limited partnership called Brignole Fitness Ltd. Brignole was the general partner of the California limited partnership. On July 17, 1992, Brignole formed a California corporation named Brignole Health Fitness Corporation (BHFC). On April 23, 1993, Brignole, in order to secure a $75,000 personal loan from plaintiff Wells Fargo Bank, executed a UCC-1 Financing Statement in favor of plaintiff Wells Fargo Bank allegedly securing "all inventory, accounts contract rights, equipment, and general intangibles." Defendant alleged this UCC-1 Financing Statement was executed by Brignole as an individual, not under either his corporation or his limited partnership. However, plaintiff claimed the loan proceeds were used by the partnership. On Oct. 28, BHFC as tenant, and defendant Sydney Young as owner and lessor, executed a lease for the property located at 900 South Arroyo Parkway. BHFC took possession on Nov. 1. Before execution, plaintiff claimed Brignole disclosed to Young the prior Wells Fargo UCC-1 as a partnership debt. Plaintiff further claimed defendant Young's security agreement acknowledged the prior security interest held by plaintiff in the equipment. On Nov. 19, defendant Young recorded a UCC-1 Financing Statement, securing all inventory and equipment of BHFC, Brignole Fitness Ltd. and Douglas Brignole as an individual. On March 22, 1995, due to BHFC's failure to pay rent, BHFC was evicted by Young. On May 1, 1995, the premises was leased to defendant Bodies in Motion who remains on the premises. Brignole prepared a list for Wells Fargo itemizing property and equipment that he claimed to have left at the premises at the time of the eviction. Defendant Bodies in Motion disputed all of the items on that list as having been owned by Brignole. On Aug. 24, 1995, subsequent to Brignole's filing for Chapter 7 Bankruptcy protection, the bankruptcy court entered an Order of Discharge, discharging all of the debts of Brignole. Brignole claimed he was never served with the lawsuit and testified on behalf of Wells Fargo at trial. Wells Fargo sought from all defendants all of the equipment that Brignole, BHFC and the limited partnership allegedly left at the facility as well as compensation for loss of use. Defendant Bodies in Motion filed a cross-complaint against Young and Wells Fargo based on indemnity, declaratory relief and contribution theories of recovery.
Settlement Discussions
A few days prior to trial, Bodies in Motion offered to give plaintiff some of the equipment items that were in dispute or a lump sum payment of $5,000. Wells Fargo rejected the offer and wanted all of the equipment that was set forth in a list prepaid by Brignole. Just prior to trial, Bodies in Motion offered to waive costs in exchange for a dismissal. Wells Fargo did not respond to the offer. Defendant Sydney Young made no offer.
Damages
Plaintiff sought from defendants possession of the equipment that Brignole allegedly left at the facility, or alternatively, compensation for loss of use.
Other Information
The verdict was reached approximately two years and two months after the case was filed. Plaintiff obtained $74,000 default judgment against Brignole.
Length
three days (bench trial)
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