 |
 |
to fill out a simple form to connect to Personal Injury Lawyers in your area.
|
|
|
|
|
Barella v. Exchange Bank11/3/2000
CERTIFIED FOR PUBLICATION
In this case we decide whether a plaintiff suing for defamation can be put at risk for payment of a defendant's costs pursuant to section 998 of the Code of Civil Procedure, if the defendant makes a reasonable settlement offer but attaches to it a condition of confidentiality. In other words, must a plaintiff seeking to vindicate his good name (and to recover damages for its tarnishment) reject a generous-but secret-settlement at his peril?
Consistent with the ancient proverb that "A GOOD name is rather to be chosen than great riches" (Proverbs 22:1), we hold that a confidentiality condition attached to a settlement offer in a defamation action is incapable of valuation and, accordingly, renders the offer invalid for purposes of the cost-shifting provisions of Code of Civil Procedure section 998 (hereafter, section 998).
Factual And Procedural History
The trial transcripts were not provided on appeal. Therefore, we have gleaned the following account from the papers submitted on defendant's unsuccessful motion for summary judgment and from the trial briefs.
Plaintiff John Barella is a real estate developer who has lived in Petaluma all his life and has conducted business in the community. In the fall of 1996 Barella purchased some property with three partners. He and his partners applied for a line of credit from defendant Exchange Bank (the Bank) to enable them to develop the land. During the Bank's review of the loan application, one Bank officer sent an internal e-mail message to the Bank's real estate loan administrator stating "Barella is a slime-ball (not by my personal experience, but by local reputation). He was the mastermind of the land deal in Cloverdale, which used the `funny money' Rosen secured. . . ."
When the loan was declined, the loan package (the loan application form together with tax returns and other financial information) was returned to one of Barella's partners, who in turn gave the documents directly to a mortgage loan broker to whom the partners had also applied. The packet included the e-mail memorandum. The mortgage loan broker read the Bank's memorandum and notified one of Barella's partners. Eventually, all the partners were given copies of the offending memorandum, and word of the document spread through the community.
The reference within the Bank's memorandum to "Rosen" was understood as a reference to Michael Rosen, who had been charged with criminal fraud arising from the financing of a development project in Cloverdale. Barella had actually been an investor in several previous real estate development projects undertaken by Rosen.
Barella sued the Bank for libel, alleging that those who read the memorandum understood it to mean that Barella himself was also guilty of fraud and conspiracy. In April 1999, while the Bank's motion for summary judgment or summary adjudication was pending, the Bank submitted a "C.C.P. ยง 998 Offer to Compromise" by which the Bank offered to pay Barella $25,000 in consideration for a dismissal with prejudice of his claims against the Bank and an "Agreement to strictly maintain the confidentiality of the settlement and the settlement amount." Barella did not accept this offer, and it expired.
Subsequently, at the settlement conference, Barella offered to settle the case for a payment of $350,000 to his charity of choice together with a letter of apology. Thereafter, the parties were able to agree upon the wording of a letter of apology, but the Bank insisted that confidentiality be maintained as to the existence and content of the letter. Settlement discussions later held on the eve of trial with the trial j
Page 1 2 3 4 5 6 California Personal Injury Attorneys
Personal Injury Lawyers
|
| |
to fill out a simple form to connect to Personal Injury Lawyers in your area.
|
|