Facts

On or about Nov. 21, 2002, defendant, Royal Circuit Solutions, Inc., A California corporation dba Royal Circuit (defendant) signed a written agreement with plaintiff's assignor, Artnet South, LLC (Artnet) wherein Artnet agreed to provide service to defendant's AOI Vision 206 equipment (Equipment) and defendant agreed to make monthly payments for said service.

Artnet then began servicing the Equipment. A laser, which was crucial to the Equipment, broke. Said laser was defendant's responsibility to replace. Thereafter, because defendant did not replace the laser part of the Equipment, defendant did not pay Artnet's monthly invoices for services per the written agreement.

When defendant refused to pay Artnet's invoices totaling $12,750 (after credits for payments), Artnet assigned its claims against defendant to plaintiff, Attorney Recovery Systems, Inc. (a collection agency) who filed the present lawsuit against defendant alleging breach of contract and common count causes of action for services rendered.

PLAINTIFF'S CONTENTIONS:
Plaintiff claimed that its assignor rendered services to defendant when requested and was ready, willing and able to fulfill its service obligations throughout the 18 month term of the contract. Plaintiff's assignor also contended that it supplied defendant with a power supply valued at approximately $20,000 at the beginning of the contract based on the assumption that defendant would fulfill its contractual obligations for all 18 months. Finally, plaintiff's assignor contended that defendant's failure to purchase a new laser is the sole reason why the contract was breached.

DEFENDANT'S CONTENTIONS:
Defendants claimed that the equipment ran only for a brief test run and was never fully operational to test circuit boards as defendant required, thereby rendering the subject machine useless to defendant. Defendant also contended that plaintiff's assignor used old and recycled parts on the equipment. Based thereon, defendant contended that nothing was due to plaintiff's assignor.

Settlement Discussions

Demand: $8,000. Offer: $4,750.

Result

$20,010.50 (including $19,250 in principal damages and $760.50 in costs).

Other Information

Plaintiff's motion to amend its complaint at the time of trial increasing the principal amount of damages sought from $12,750 to $19,250 was granted by the court.