Facts

Pursuant to a contract, Plaintiff Joseph Klein and Defendant David Brown agreed that MJK Inc. and Universal Trim Wash & Dye LLC, their respective businesses, would merge to form Universal Trim Inc. Brown was designated as president of the new company. Brown went into debt and subsequently obtained a loan which Plaintiff Olga Klein guaranteed. Brown then defaulted on the loan. Because Olga Klein guaranteed the loan against her real property, she had to refinance her home in order to pay the loan. Brown then proceeded to take funds out of Universal Trim without informing or paying Joseph Klein amounts he was entitled to. Brown then locked Joseph Klein out of the business. He also reneged on a written agreement in which he agreed to repay Olga Klein. Later, Brown agreed again to repay Joseph Klein $5,000 per week until the debt owed to him was paid off, but again failed to follow through. Joseph and Olga Klein filed a lawsuit against Brown, alleging fraud and breach of contract.

DEFENDANT'S CONTENTIONS:
Despite evidence that he was Universal Trim's president, the defendant denied having any interest in the company. Further, the defendant also denied owing any money to either plaintiff even though written evidence to the contrary existed.

Settlement Discussions

The plaintiffs demanded $250,000 (C.C.P. 998) and the defendant made no offer.

Result

$1,560,000. Individually, Brown was found liable on all counts. Universal Trim Inc. and Universal Wash & Dye LLC were named as defendants but were cleared of any liability.

Poll

12-0

Length

six days