Facts

On Oct. 16, 2005, plaintiff Loren Gardner entered into a written contract with defendants Labib Barance and Majid Labib Barance. Gardner agreed to lend defendants $50,000 plus a loan origination charge of $1,000 and an annual interest at 10 percent. A promissory note was executed to record the loan. Further, the agreement was secured with real property located at 4 College Terrace, San Francisco. The parties also agreed that Labib and Majid had 90 days or upon the transfer of the secured property to pay back the loan amount.

On Dec. 9, 2005, Gardner orally contracted with the Barances' and Edward Novak. Gardner stated he would loan them a total of $200,000, with an annual interest of 10 percent. Repayment of the loan was to occur on or before Jan. 31, 2006. Novak asserted that the loan was to be combined with the previous loan and secured by the land in San Francisco.

On June 2, 2006, plaintiff contracted with the Barances and Chris O'Dell, whereby plaintiff agreed to loan $70,000, with a $1,400 loan origination charge and an annual interest rate of 10 percent. Again, the San Francisco property was used to secure the loan.

On July 5, 2006, Gardner contracted with Labib and O'Dell whereby Gardner agreed to loan them $70,000, with a $1,500 loan origination and without interest. Repayment was to occur "as soon as the Park Street deal closes." Property located at 4040 MacDonald Avenue in Richmond, was used to secure the loan.

The funds loaned to defendants were applied towards the purchase of property located at 350 Treat Street in San Francisco, the address for defendants' new body shop. The money was to be invested in 4 College Terrace, Labib's residential property.

PLAINTIFF'S CONTENTIONS:
The plaintiff contended that the defendants did not repay the loans and alleged breach of contract, common counts, fraud, and conversion.

Damages

The plaintiff claimed damages for $390,000 in unpaid loans and $3,900 for loan origination fees.

Result

A settlement was reached amounting to $256,117, which included $4,617 for attorneys fees.

Other Information

FILING DATE: Oct. 24, 2006.