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Fotouhi Epps Hillger Gilroy, LLP

The Firm Announces the Addition of Daniel Dean as Senior Counsel

The Firm is pleased to announce the addition of Daniel Dean, a former partner with Taylor Gutierrez Marca LLP, as Senior Counsel.

Shahab E. Fotouhi named to the list of Northern California “Super Lawyers®” for 2008

For the second time in four years, Shahab E. Fotouhi has been named to the list of Northern California “Super Lawyers®” for 2008, as published in the August issue of San Francisco magazine and in the companion Northern California Super Lawyers. Super Lawyers is a list of the top five percent of attorneys in the area as chosen by their peers and through the independent research of Law & Politics, a Minneapolis-based trade publication.

Firm Secures $1.1 Million Judgment on behalf of Surety

Mark J. Divelbiss and Shahab E. Fotouhi recently obtained a $1.1 million judgment in favor of a surety and against its principal arising out of construction of a sewage plant in Northern California. The principal’s work on the plant was found to have been defective. The sewage plant owner obtained an award against the principal following a lengthy arbitration. The firm’s client paid the award based upon the performance bond issued to the principal. On behalf of the surety, and based upon the indemnity language in the bond, the firm filed suit against the principal seeking reimbursement of funds paid to satisfy the arbitration award. In response, the principal argued that although it had arbitrated the case against the owner of the sewage plant on his own accord, the firm’s client was required to have stepped in earlier and provided the principal with a defense in the arbitration proceeding and that the lack of such a defense resulted in the arbitration award. The Solano County Superior Court granted the firm’s Motion for Summary Judgment based upon the firm’s argument that the surety had no such obligation. The matter is on appeal.

Dismissal Obtained for Client in Insurance Coverage Dispute

In March 2008, attorneys Shahab E. Fotouhi and Wendy L. Hillger secured an outright dismissal in a case brought by the insured against its insurance company.

At issue was whether the firm's client, an insurance company, wrongfully failed to pay a claim. The insured, a truss manufacturer, incurred significant damages at a construction project. The insured paid the damages and made a claim to the insurer, who denied any duty to pay based upon the requirements of the insurance policy. The insured sued the firm's client for breach of contract and bad faith seeking recovery of the paid claims, punitive damages and attorney’s fees. During the firm's investigation, documents damaging to the insured's claim were uncovered, and the firm wrote a "meet and confer" letter seeking a dismissal. The insured thereafter agreed to drop its claim against the firm's client.

Firm Prevails on MSJ in Negligence Suit

In the Spring of 2008, Wendy Hillger brought and prevailed on a motion for summary judgment in a case arising from a home inspection. The lawsuit was filed by an aggrieved property owner who claimed that the firm's client, a general contractor, failed to use due care when he performed a pre-purchase property inspection. The asserted damages against the firm's client were in excess of $2.2 million. The motion was based upon the statute of limitations. The firm argued that the property owner was on "inquiry" notice; the property owner had information which should cause a reasonable person to inquire further concerning the claimed problems at the home. The property owner argued that he did in fact perform a proper investigation upon receiving the information, but nevertheless did not discover the inspector's negligence until 1 year later. The Kern County Superior Court judge agreed that the property owner did not file the lawsuit in a timely manner, and granted judgment in favor of the firm's client.

Real Estate Education Presentation Made by Wendy Hillger

In July 2007, Wendy Hillger presented a seminar to the real estate professionals at TRI/ Coldwell Banker. The sales agents were advised about the ever-changing legal landscape of buying, selling and owning residential property in San Francisco.

The Firm is committed to providing education and counseling services to its clients. If you are interested in having a seminar, please contact us.

Firm Obtains Defense Verdict for Contractor in Trip and Fall Case

After a two week trial, Darren W. Epps obtained a defense verdict on June 21, 2007 in a trip and fall case venued in Fresno County Superior Court. Plaintiff, a 48 year old nurse, claimed to have suffered two fractured toes in her left foot and a torn meniscus in her right knee as a result of tripping and falling over a metal sleeve at Clovis High School. She was walking to a classroom to attend a meeting of the school golf team parents when she approached a walkway near the gym containing four metal sleeves approximately six inches in diameter which protruded three to four inches above the ground. The sleeves were intended to be used with removable bollards (metal poles) to control vehicular traffic through the area. The bollards had been removed from the sleeves and were not in place when the incident occurred. Plaintiff sued the firm’s client, a general contractor who was performing renovation construction at the gym near the site of the incident, and the Clovis Unified School District (CUSD). She claimed the firm’s client removed the bollards to gain access to the gym and failed to replace them as required by their contract and school policy, and that CUSD created a dangerous condition of public property by having the sleeves protrude above the ground instead of cutting them flush. At trial, plaintiff introduced expert testimony that the firm’s client negligently failed to replace the bollards at the end the work day and that the configuration of the bollard/sleeve system created a dangerous condition of public property. Plaintiff’s medical expert opined that she suffered a torn meniscus in her knee as a result of the incident which required surgical repair and that she would require complete knee replacement surgery in the future. The jury returned a defense verdict on behalf of the firm’s client, but held CUSD 75% responsible for the incident with 25% comparative fault attributed to plaintiff.

Shahab Fotouhi Named President of Board of Governors of USF Law School

In May 2007, Shahab Fotouhi was named the new President of the Board of Governors of USF Law School. Mr. Fotouhi has served on the board for the last five years.

Firm Obtains Dismissal and Sanctions Against Collection Agency

In May, 2007, Darren W. Epps brought a motion to dismiss a lawsuit brought by a collection agency against the firm’s client seeking payment of moneys allegedly owed. In addition to prevailing on the motion and obtaining a dismissal of the lawsuit, Mr. Epps also successfully obtained an award of sanctions against the collection agency for its conduct during litigation.

Firm Prevails on MSJ in Bad Faith/Legal Malpractice Suit

In the Spring of 2007, Michael J. Gilroy and Lynn Simons successfully brought and prevailed on a motion for summary judgment in a bad faith/legal malpractice case filed by a disgruntled insured against his insurance company and house counsel. The lawsuit alleged that the insurance company had been forced to settle the underlying matter after house counsel had botched the case exposing the insured to higher insurance premiums and other alleged consequential damages. The firm argued that there were no discernable or recoverable damages as a matter of law. The court granted the motion in its entirety terminating the case and awarding costs.

Favorable Settlement Reached in Insurance Coverage Dispute

In February 2007, attorneys Shahab E. Fotouhi and Wendy L. Hillger secured a settlement in the amount of $127,500 on behalf of an insurance company. The settlement represented one-half of costs the Firm’s client expended to defend a serious personal injury and property damage case.

At issue was the contested existence of an “Additional Insured” endorsement. The Firm’s client asserted that, because of an “Additional Insured” endorsement, the two insurers should defend and indemnify the insured on a pro rata basis. Throughout the underlying claim defense, defendant insurance company denied that the Firm’s client was entitled to any coverage. In the coverage litigation, defendant insurance company again denied that the Additional Insured endorsement was valid, asserting that the endorsement was not issued prior to the incident, and further denied that the endorsement language provided coverage for the client’s insured.

On the eve of Arbitration, the insurance company settled for the full value of the claim.

Firm Prevails In Negligent Security Case

In December 2006, attorneys Shahab E. Fotouhi, Wendy L. Hillger and Bryan L. Saalfeld prevailed on a negligent security case when the Court agreed that the firm’s client did not have a duty to prevent the incident in question. Plaintiff filed suit against a major retailer, claiming she was assaulted by an unidentified man while in the dressing room of the retailer’s San Diego store. She contended that the firm’s client did not have sufficient security stationed at the store. Based upon evidence presented to the Court, including information relative to the client’s security procedures and the unforeseeable nature of the incident, the San Diego Superior Court granted the firm’s Motion for Summary Judgment.

The Firm’s Commitment to Continuing Legal Education

Wendy L. Hillger has been invited to join the McFetridge chapter of the American Inns of Court. The purpose of the American Inn of Court is to inculcate and cultivate the best qualities of the great trial advocates: honesty, courage, industry, judgment, eloquence, wit and fellowship. To this end, members learn side-by-side with the most experienced judges and attorneys in their community. The chapter meetings are held in the courtroom of Federal Judge Thelton Henderson.

Firm Obtains Dismissal for Client in Large Commercial Construction Case

In the summer of 2006, Darren W. Epps obtained a voluntary dismissal on behalf of the firm’s client who performed rough grading work at a multi-million dollar commercial construction project in Arroyo Grande. Plaintiffs sought $7 million for water intrusion and other construction defect damages associated with alleged defects in the original planning and construction of the project. Mr. Epps convinced the property owners and general contractor to dismiss the firm’s client for a waiver of costs.

Firm Secures $1.76 Million Judgment on Behalf of Commercial Landlord in Dispute with Tenant

In June 2006, Shahab E. Fotouhi and Mark J. Divelbiss secured a judgment in the amount of $1.76 million on behalf of a major San Francisco commercial landlord in a dispute with its tenant. The tenant, a construction company, had breached its lease with the landlord claiming that it had performed construction activities for the landlord in exchange for waiver of rents. The firm’s client contended that the work performed by the tenant was merely an agreement to extend the payment date for past due rents. The Court awarded the firm’s client the entire lease value, past and future, including attorneys’ fees and costs, and pre-judgment interest.

Bryan L. P. Saalfeld Joins Firm

FOTOUHI • EPPS • HILLGER • GILROY LLP is pleased to announce that Bryan L. P. Saalfeld has joined  the firm as an associate.

Firm Obtains Defense Verdict in Electrical Shock Case

On April 18, 2006, and after a seven week trial, Shahab E. Fotouhi and Daniel P. Iannitelli obtained a defense verdict in a serious personal injury case in Butte County Superior Court. Plaintiff, a 34 year old low voltage electrician, claimed that he was electrocuted by 277 volts while performing work at a commercial site in Chico California. He claimed that the electrical wire to which he was exposed was negligently left unprotected by the firm’s client, the general electrician. Plaintiff claimed that the electrical shock traveled to his brain, resulting in serious cognitive deficit and rendering him fully disabled. At trial, plaintiff introduced the testimony of no less than four doctors, including two psychologists who opined that plaintiff was seriously injured as a result of the incident and disabled for life. The doctors uniformly testified that the electrical shock had traveled to plaintiff’s brain resulting in organic brain syndrome. Additionally, plaintiff introduced the testimony of fourteen other witnesses, who all claimed that plaintiff was a different man after the accident than before. Plaintiff’s life care planning expert testified that plaintiff would require full-time in home care given his condition and his injuries. His neuro-psychologist opined that plaintiff’s I.Q. went from 105 before the accident to 30 after the accident. His economist opined that plaintiff’s economic loss, including past and future medical expenses and past and future wage loss was $2.5 million. Plaintiff’s wife also put forth a claim for loss of consortium. During closing arguments, plaintiffs’ counsel asked the jury return a verdict in the amount of $15 million, which comprised of $2.5 million in economic damages and $12.5 million in non-economic and loss of consortium damages.

Prior to trial, plaintiff entered into settlements with the general contractor and another subcontractor. The firm’s client was the sole defendant at trial.

At trial, the firm's client contended that the accident was not due to any negligence on its part. Rather, the defense took the position that plaintiff’s accident was solely due to his own negligence. Additionally, the defense took the position that plaintiff is a malingerer, who exaggerates the symptoms of the injuries he allegedly sustained as a result of the accident. Defense surveillance video shown to the jury revealed plaintiff performing a number of activities he claimed he could not perform. The defense neuro-psychologist supported the contention that plaintiff was a malingerer; he testified that plaintiff presented with symptoms of anti-social personality disorder.

After deliberating for just three hours, the jury returned a defense verdict, finding that the firm’s client was not negligent.

Firm Prevails on Behalf of Primary Carrier in Dispute with Excess Carrier Over Defense Fees & Costs

On behalf of a primary carrier in a significant personal injury matter, Shahab E. Fotouhi obtained a defense verdict in a coverage dispute between the firm’s client and the excess carrier. The case was venued in San Francisco Superior Court. The firm’s client was sued by the excess carrier for reimbursement of defense fees and costs expended by the excess carrier in the defense of the mutual insured. The excess carrier claimed that although the firm’s client had tendered its policy limits, the primary carrier was required to reimburse the excess carrier expenses associated with the defense of the case by counsel selected by the excess carrier, without agreement from the firm’s client. The excess carrier sought more than $800,000 in fees and costs associated with the defense of the underlying case. Since the underlying matter had not yet resolved at the time of trial, the excess carrier also sought a declaration from the Court mandating the firm’s client to pay all expenses associated with the defense of the case by the excess carrier’s selected counsel.

After a five day Court trial, and numerous post-trial hearings, Judge Thomas Mellon of the San Francisco Superior Court ruled in favor of the firm’s client, finding that it had no obligation to reimburse the excess carrier the amounts incurred in defending the underlying case. The Court also rejected the request for declaratory judgment. The Court awarded the firm’s clients all costs incurred in defending the action.

Firm Secures Reversal of Adverse Verdict in Negligent Security Case

Shahab E. Fotouhi recently obtained reversal of an adverse verdict obtained in a negligent security case, Delgado v. Trax Bar & Grill, after review by both the California Supreme Court and the Fifth District Court of Appeal. The firm was retained in 2005 to handle the appeal of this matter, which was then pending before the Supreme Court. The underlying matter arose out of an incident in which plaintiff alleged that the firm’s client failed to provide sufficient security at its restaurant in Turlock, California. Plaintiff contended that defendant’s lack of security resulted in his attack by 10-15 men, causing him serious bodily injury. At trial, the jury returned a verdict for plaintiff in the amount of $81,000; representing his economic damages only. The hearing before the Supreme Court was handled by the firm and held in April 2005. After briefing and hearing, the Court of Appeal was directed by the Supreme Court to view the evidence using a less stringent test for foreseeability.

On March 20, 2006, the Fifth District Court of Appeal agreed with the firm’s position, that despite this lesser test of foreseeability, the verdict could still not be allowed to stand. Accordingly, the Court ordered a new trial be held in the matter, nullifying the original verdict.

Firm Provides Counseling to Small Property Owners

In the winter of 2006, Wendy L. Hillger will be speaking to owners of multi-unit residential properties. Ms. Hillger will share her expertise in construction law, such as what to know before hiring a contractor, managing the remodeling construction project, and resolving issues that may arise during the project. If you are interested in attending the seminar, please contact Ms. Hillger to be put on the mailing list.

Jury Trial Victory in Seven Figure P.I. Case

Michael J. Gilroy and Shahab E. Fotouhi recently tried and successfully defended a lengthy personal injury case in Sonoma County. The lawsuit stemmed from a construction site accident wherein the plaintiff allegedly tripped and fell over some wires and other construction materials placed there by the Firm’s client, a general contractor. Plaintiff was severely injured in the accident and was told he could never work again in the construction field. At trial, plaintiff was claiming a total of $3.4 million in economic damages, including past and future medical specials and wage loss. He was also claiming millions in non-economic damages (i.e., pain and suffering).

After a contentious three week trial on the issue of liability only, the jury came back with a verdict on the negligence issue as follows: 85% comparative negligence allocated to plaintiff; 10% allocated to plaintiff’s employer; 5% allocated to the Firm’s client. Due to the liability verdict, the case settled before the damages phase for an amount far less than the Firm’s pre-trial offer of settlement.

Daniel P. Iannitelli Elevated to Partner

FOTOUHI • EPPS • HILLGER • GILROY LLP is pleased to announce that Daniel P. Iannitelli has been elevated to Partner at the firm.

Fotouhi Epps Hillger Gilroy LLP Announce Re-Location of Northern California Office.

The Northern California Office of Fotouhi Epps Hillger Gilroy LLP has moved as of January 3, 2006. The new address is 160 Pine Street, Suite 710, San Francisco, California 94111. The new telephone number is: 415.362.9300; the new facsimile number is: 415.358.5521.

Shahab Fotouhi Presented Oral Argument Before California Supreme Court in Delgado v. Trax Bar & Grill

Shahab E. Fotouhi represented the defendant in a case of much interest to be decided by the California Supreme Court. Mr. Fotouhi’s client, Trax Bar & Grill, was unable to prevent an orchestrated criminal attack by a group of men upon Mr. Delgado. At issue is whether a tavern owner, who voluntarily provides security guards to monitor the tavern’s parking lot and control patron behavior, thereby assumes the duty to protect patrons from assault by others in the parking lot. The oral argument took place in Los Angeles on April 8, 2005. [Delgado v. Trax Bar & Grill, Supreme Court case no. S117287].

$4.2 Million Verdict in Plaintiff’s Employment Case

Shahab E. Fotouhi and Daniel P. Iannitelli obtained a jury verdict for an account executive who was wrongly terminated from her job and the victim of sexual harassment. Following a five week jury trial, the San Francisco jury awarded the Firm’s client $1.2 million dollars in compensatory damages. Following a second phase of the trial, the jury awarded plaintiff an additional $3.0 million in punitive damages for the defendants’ oppressive conduct. Read Verdict Search Article.

» news & events page 2 

The Firm Announces the Addition of Daniel Dean as Senior Counsel.

Shahab E. Fotouhi named to the list of Northern California “Super Lawyers®” for 2008.

Firm Secures $1.1 Million Judgment on behalf of Surety.

Dismissal Obtained for Client in Insurance Coverage Dispute.

Firm Prevails on MSJ in Negligence Suit.

Real Estate Education Presentation Made by Wendy Hillger.

Firm Obtains Defense Verdict for Contractor in Trip and Fall Case.

Shahab Fotouhi Named President of Board of Governors of USF Law School.

Firm Obtains Dismissal and Sanctions Against Collection Agency.

Firm Prevails on MSJ in Bad Faith/Legal Malpractice Suit.

Favorable Settlement Reached in Insurance Coverage Dispute.

Firm Prevails In Negligent Security Case.

The Firm’s Commitment to Continuing Legal Education.

Firm Obtains Dismissal for Client in Large Commercial Construction Case.

Firm Secures $1.76 Million Judgment on Behalf of Commercial Landlord in Dispute with Tenant.

Bryan L. P. Saalfeld Joins Firm.

Firm Obtains Defense Verdict in Electrical Shock Case.

Firm Prevails on Behalf of Primary Carrier in Dispute with Excess Carrier Over Defense Fees & Costs.

Firm Secures Reversal of Adverse Verdict in Negligent Security Case.

Firm Provides Counseling to Small Property Owners.

Jury Trial Victory in Seven Figure P.I. Case.

Daniel P. Iannitelli Elevated to Partner.

Fotouhi Epps Hillger Gilroy LLP Announce Re-Location of Northern California Office.

Shahab Fotouhi Presented Oral Argument Before California Supreme Court in Delgado v. Trax Bar & Grill

$4.2 Million Verdict in Plaintiff’s Employment Case.

Successful Binding Arbitration Award for Automobile Dealer in Wrongful Termination Case.

Dismissals Obtained in Product Liability Class Action Matter.

Court Trial Leads To Affirmative Outcome for Firm’s Client.

Fotouhi Epps Hillger Gilroy LLP Announce Opening of Pacific Northwest Office.

Successful Reversal of Fortune in Indemnity Claim.

Property Owner Extricated from Lawsuit Via Successful Motion for Summary Judgment.

Firm Obtained Release of Escrow Deposit in One Week.

Firm’s Client Pays Nothing In Serious Construction Injury Case.

Affirmative Six Figure Settlement After Successful Construction Defect Defense.

Four Days of Trial Convinces General Contractor To Settle with Roofer for Nuisance Value.

Firm Persuades Insurance Company to Drop Multi-Million Dollar Claim.

Nonsuit Granted in Favor Door and Window Supplier.

Successful Settlement Reached in $4.5 Million Claim Brought By Homeowners.

Roofer’s Pre-Arbitration Offer to Compromise is a Success.

Destructive Testing Results Lead To Nuisance Value Settlement.

Shahab E. Fotouhi is the 2005 Recipient of The John J. Meehan Alumni Fellow Program.

Generous Settlement for Homeowners in Case against General Contractor.

Corporate Shareholders Settle Claim for Nuisance Value

Wendy Hillger Completed Training to be an Arbitrator

Nonsuit Obtained for Property Owners Regarding 1200 Acre Fire.

Dismissal Obtained for Department Store Client.

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