The Fish Tale Inc. v. James Chiu, Anna Chiu
Published: Jun. 21, 2001 | Result Date: Apr. 17, 2001 | Filing Date: Jan. 1, 1900 |Case number: 281092 Bench Decision – $0
Judge
Court
Riverside Superior
Attorneys
Plaintiff
Defendant
Experts
Plaintiff
Andrea McNichol
(technical)
Defendant
J.D. Perkiss
(technical)
Thomas E. Polakiewicz
(technical)
Facts
In 1987, Abdulla sold the Steak Ranch Restaurant in Temecula to the defendants. As part of the purchase price,
Abdulla took back a Note for $220,000, which he pledged to Western Community Bank as security for bank
loans to Abdulla and for collection. In an unrelated transaction, Abdulla purchased The Fish Tale Restaurant
and subsequently sold it Jose Ruiseco and, in March 1990, Abdulla, Ruiseco, The Fish Tale Restaurant and the
bank executed an Inter-Creditor Agreement where Abdulla pledged the Chui Note as security to a promissory
note in favor of The Fish Tale Restaurant. As a condition of the Inter-Creditor Agreement, Abdulla was to
deliver possession of the original Chui Note to the plaintiff. Chui was also to execute an Estoppel Certificate.
The defendants asserted that they had no knowledge of the Inter-Creditor Agreement and were never presented
with an Estoppel Certificate. The defendants operated the Steak House Restaurant and subsequently got into a
dispute with the landlord over percentage rent. The landlord filed an unlawful detainer action and obtained a
writ of possession in May 1990. That same month, Abdulla and defendants met at the defendantsÆ attorneys
office, Marshall Rich, and entered into an agreement where Abdulla would buy back the restaurant for $7,000
and cancel the unpaid balance on the Note. At the meeting, Abdulla produced what he alleged he thought was
the original Note and wrote "satisfied in full" across it, signed it and returned it to the defendants. A settlement
agreement was entered into at that time.
The Fish Tale Restaurant subsequently sued Ruiseco and Abdulla in August 1993 and obtained a $589,000
judgment in its favor. The court ordered Abdulla to deliver possession of the Chui Note to plaintiff. Ruiseco
subsequently filed for bankruptcy and The Resolution Trust Corporation seized the bank and liquidated it.
On May 15, 1996, the plaintiff filed a complaint to collect the unpaid balance on the Chui Note.
The Chuis cross-complained against Abdulla for breach of the May Settlement Agreement and against its
attorney, Marshall Rich, for malpractice. Both Abdulla and Rich filed for bankruptcy, disposing of the cross-
complaint.
Settlement Discussions
The plaintiff demanded $115,000 plus 50 percent of the claim against attorney Rich. The defendants offered $50,000 plus 50 percent of the claim against attorney Rich.
Damages
The plaintiff claimed $190,000 for the unpaid balance of the note, plus interest of $200,000.
Other Information
The plaintiff filed a Notice of Appeal on April 4, 2001.
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