Confidential
Settlement – $72,000Judge
Court
L.A. Superior Central
Attorneys
Plaintiff
Defendant
Robert W. Hodges
(McNamara,Ney,Beatty,Slattery,Borges & Ambacher LLP)
Facts
In March 1994, the plaintiff engaged the services of a temporary employee through the defendant employment agency. From March 1994 until December 19, the employee embezzled approximately $53,000 while serving as a temporary and later as a permanent employee at the plaintiff non-profit organization. The employee embezzled the funds by making personal charges on the plaintiff's credit card, which was maintained with the defendant bank. The employee paid the monthly bills on the credit card account using forged checks drawn on the plaintiff's checking account at the defendant bank. The plaintiff brought this action against the defendants, the employment agency and the bank, based on negligence, breach of contract, and UCC violation theories of recovery.
Settlement Discussions
The defendant bank made an initial offer of compromise for $7,465, which was raised to $20,000 in a subsequent C.C.P. º998 offer of compromise. The defendant employment agency made an offer of compromise for $11,000. The plaintiff made a counteroffer to the defendant bank for $30,000, which was raised to $42,294. The plaintiff made a counteroffer to the defendant employment agency for $41,000.
Damages
The plaintiff claimed $53,000 in damages. The plaintiff also claimed contractual attorney's fees against the defendant bank.
Other Information
The settlement was reached approximately eleven months after the case was filed. The settlement resolved discovery sanctions of $1,505 imposed on the defendant bank and enabled the bank to avoid complying with a court order to produce documents which it contended were confidential and contained trade secrets.
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