Early Sullivan Obtains $4.85 Million Jury Verdict for Client in Wrongful Foreclosure Case

An Early Sullivan Wright Gizer & McRae trial team, comprised of Scott Gizer, Rebecca Claudat and Zachary Hansen obtained a $4.85 million jury verdict on behalf of their clients Cashera Plaza, LLC and Tony Khodadad regarding a wrongful foreclosure on vacant land in Hanford, CA.

Cashera Plaza had obtained a $1.13 million construction loan from Defendants to build a self-serve car wash and auto repair facility. The Defendants entrusted the construction funds to a fund control agent, but then secretly used those same funds for a gold refining venture without Plaintiffs’ knowledge or consent. When this gold venture failed, Defendants tried to hold Cashera Plaza responsible for the entire $1.13 million despite Cashera only receiving approximately $140,000, asserting that the fund control agent was under Cashera Plaza’s control and then trying to hide evidence of Defendants’ secret gold venture. Liability was found and the critical issue at trial became whether Plaintiffs could establish damages for lost profits since Plaintiffs’ car wash and auto repair facility was never built due to Defendants’ breaches and fraud.

The jury unanimously found that Plaintiffs had established lost profits with reasonable certainty and awarded Plaintiffs the entire amount of lost profits claimed as well as emotional distress damages for Defendants’ fraud.