Martin Nemeth, Western Assurance Company v. Mike Cullen
Published: Apr. 16, 1994 | Result Date: Mar. 31, 1994 | Filing Date: Jan. 1, 1900 |Case number: 503773 – $2,812,490
Judge
Court
Sacramento Superior
Attorneys
Plaintiff
Defendant
Experts
Plaintiff
Joseph Zellmer
(technical)
Facts
Defendant Mike Cullen, a Sacramento attorney and former CA state assemblyman, was the business attorney for Plaintiff Western Assurance Company, Inc., for 8 years. Plaintiff Martin Nemeth and his wife developed a business recovering money in cases where clients overpaid Social Security taxes. Plaintiff Western typically would review the records of a client and recover any FICA money that was paid out unnecessarily. During the development of Western Assurance, Defendant Cullen allegedly advised Plaintiff Western not to require written contracts for the company's highest paid executives, instead suggesting that they be retained as consultants. By giving an Indiana executive a percentage of profits instead of having him on an employment contract, the Indiana law interpreted this executive as a partner. In an underlying suit, after a business dispute, an Indiana executive, J.D. Connor, sued Martin Nemeth, the founder of Western Assurance Company, Inc. Nemeth and Western lost the suit and the company ended up going into bankruptcy in 1991.
Settlement Discussions
Plaintiffs contend their demand was $18,000,000 and Defendant made no offers.
Damages
$2,800,000 lost profits.
Deliberation
2 days
Poll
9-3
Length
3 weeks
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