Confidential
Settlement – $450,000Judge
Court
San Diego Superior
Attorneys
Plaintiff
Defendant
Experts
Plaintiff
Cary P. Mack
(technical)
Facts
The defendant was the manager of the plaintiff, a San Diego-based company that sold balloons and other party
products in North and South America manufactured by a Mexican latex product manufacturer. The defendant
hired his wife, the co-defendant, as the plaintiffÆs bookkeeper. He subsequently hired her brother as sales
representative.
Simultaneously, the three co-defendants established their own company to market and
sell products manufactured by another Mexican entity. They administered this competing
business using the plaintiffÆs office and warehouse space and using the plaintiffÆs funds to pay for
the corporate expenses of their new business.
Settlement Discussions
The defendants accepted C.C.P. Section 998 offers from each defendant to settle at $150,000 each. During the lawsuit, the defendant brother-in-law and the competing business filed for Chapter 7 bankruptcy.
Damages
The plaintiffÆs expert testified that the economic loss to the plaintiff was approximately $1.8 million in lost sales. Damages as a result of embezzlement were estimated to be between $50,000 to $100,000.
Other Information
Retired judge Thomas Murphy of JAMS was the discovery referee.
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