Favorable Settlement in Breach of Contract Case

In this action, a cross-complainant filed suit against our client, alleging fourteen causes of action, including, but not limited to breach of contract, fraud, misrepresentation, concealment, indemnity, and declaratory relief.  The cross-complainant also sought punitive damages against our client.  On behalf of our client, we demurred to the majority of the causes of action, and filed a separate lawsuit against the cross-complainant for breach of contract.  At the hearing of our demurrer to the operative cross-complaint, the Court dismissed twelve of the cross-complainants’ claims against our client without leave to amend.  Subsequently, we engaged in negotiations with the cross-complainant’s counsel, and argued that the evidence indicated that the cross-complainant had breached the contract at issue and owed our client damages pursuant to the liquidated damages clause.  The parties agreed to settle all actions under the condition that the cross-complainant pay our client the entire amount of damages owed under the liquidated damages clause of the contract.