Hon. Kathleen A. Kelly (Ret.)

• Several individuals negotiated setting up a cannabis cultivation, distribution, and sale business. Two of them, plaintiffs, alleged, however, that the other two, defendants, made fraudulent representations and omissions which induced plaintiffs into joining the venture, and ultimately failed to pay the investment capital required for their ownership interests. Defendants cross-complained, alleging that plaintiffs were the ones engaging in fraud and stealing the business from defendants. Following years of litigation and a mistrial, case settled at Mandatory Settlement Conference.
• School services company sued school district over non-payment of contract for services that the district did not use during the COVID-19 pandemic, despite the company maintaining readiness to provide services, at the district’s request. The district disputed the alleged request and accused the company of filing false claims. Settled at the end of trial, but before entry of jury verdict.
• Plaintiff café operators alleged that after entering into a lease agreement with defendant property owners, the defendants engaged in fraudulent acts and intentionally interfered with the plaintiffs’ business, all aimed at pressuring them into vacating the property or renegotiating their lease at a higher rate. Following arbitration and years of further litigation over the award, and a settlement through mediation, the plaintiffs alleged that the defendants repeatedly breached the settlement agreement, which they entered into in bad faith. Case resolved via further settlement following rulings from Judge Kelly.
• International investor plaintiff claimed that he was fraudulently induced to invest in defendant medical cannabis company by several individual defendants, and that instead of fulfilling the promises made to plaintiff, defendants transferred plaintiff’s investment capital to another company and concealed the fact that the company in which plaintiff invested thereafter had no assets and substantial debt. Defendants denied the claims. Jury verdict for plaintiff.
• Large nationwide services company plaintiff claimed that competitor defendant conspired with former employees of plaintiff to steal and use trade secrets, including customer, contract, and pricing information, to steal plaintiff’s clients. Defendants denied both theft and collusion. Settled at Mandatory Settlement Conference.

• Plaintiff law firm wired payments to defendant international clients in an amount allegedly greater than the clients were owed. After discovering the error, Plaintiff requested that clients return the overpaid amounts, which the clients initially agreed to do. Defendant clients later refused to return additional funds and advanced numerous arguments that they should not have to. Following protracted litigation, the case settled following multiple days of settlement conferences and a motion to enforce the settlement.
• Plaintiff home loan borrower filed suit against bank and loan servicer defendants, claiming that they violated the terms of their loan modification agreement and failed to allow her to participate in the federal home loan modification program for which she qualified. After agreeing to settle the case, defendants allegedly failed to follow through with their settlement agreement in good faith. Settled following closing arguments.
• Medical practitioner plaintiffs alleged that two former employees of their medical practice embezzled funds paid by patients and stole large amounts of medical products and inventory purchased by plaintiffs for the practice, then hid their theft and embezzlement by altering internal accounting records. Settled following rulings on motions in limine.

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• General contractor and electrical subcontractor on major downtown construction project asserted numerous breaches of contract claims against the other centering on, among other issues, alleged delays and failure to pay change orders. Following a court trial, with extensive documentary evidence, both sides were found to have breached specific aspects of the subcontract, leading to a net recovery for the general contractor following complex series of offsets.
• Plaintiff, a homeowner’s association of a large residential housing complex, sued the general contractor which completed a project to repair the complex’s water supply system. Plaintiff alleged that the system was defective and required an expensive complete replacement following negligent repairs and failed subsequent efforts to fix the poor work. The GC disputed liability and the extent of damages. Several subcontractor parties were added by cross-complaint, further complicating matters. All defendants denied damages claims. Settled at Mandatory Settlement Conference.
• Commercial property developer plaintiff sued painting contractor defendant for allegedly defective work including claims that the work failed to prevent water intrusion despite express awareness of the issue and warranties to the contrary. In addition to notable repair costs, plaintiff claimed the water intrusion also led to significant business interruption for the plaintiff and its commercial tenants. Defendant disputed the allegations and denied all liability. Settled following extensive decisions on pre-trial motions in limine.
• Homeowners association of a residential development claimed that the developer and general contractor who built the development failed to properly provide a working plumbing system, resulting in numerous systemwide failures and substantial resulting damage throughout the development. The developer and general contractor argued that many of the association’s causes of actions were legally improper, that others were barred, and that others were design-related claims, not properly brought against them. Settled at Mandatory Settlement Conference.
• Wide-ranging construction dispute between homeowner, architect, and contractor arising out of substantial renovation of large private residence. The parties made numerous claims against the others including over allegedly unpaid labor and materials, mechanic’s liens, construction defects, indemnity, contribution, and breaches of several contracts. Settled following jury selection.

• Plaintiff general contractor filed suit against defendant owner of a large residence on which the contractor had been working for several years, alleging that the owner failed to pay for all labor and materials supplied pursuant to the construction contract between the parties. The owner then cross-complained against the contractor for failure to complete the work called for in the contract in a timely fashion, failure to complete some work, and for negligent construction. Settled after trial before final statement of decision issued.

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• Plaintiff purchased a new vehicle manufactured and distributed by defendant. During the warranty period, plaintiff allegedly discovered numerous defects in the vehicle, which plaintiff claimed defendant failed or declined to repair. Defendant declined to replace the vehicle. Defendant denied the allegations. Jury returned a defense verdict.
• Plaintiff home loan borrower filed suit against bank and loan servicer defendants, claiming that they violated the terms of their loan modification agreement and failed to allow her to participate in the federal home loan modification program for which she qualified. After agreeing to settle the case, defendants allegedly failed to follow through with their settlement agreement in good faith. Defendant settled following closing arguments.

• Plaintiff made a six-figure loan to two married relatives in exchange for a promissory note which provided terms for repayment and interest. The Defendant relatives failed to pay, other than small partial payments which did not cover the interest, much less the principal. Defendant husband argued that wife should not be held responsible for the loan. Judgment in favor of Plaintiff against both defendants following court trial.
• Creditor service on behalf of a chiropractic office filed suit against former chiropractic patient seeking damages following patient’s failure to pay for treatment. Former patient denied all claims. Following bench trial, judgment for plaintiff.
• Law firm filed collection action against former client who failed to pay his six-figure attorneys’ fees and costs bills. Defendant denied the allegations. Judgment for plaintiff following bench trial.
• Plaintiff purchaser of commercial debt filed suit against company which allegedly failed to pay open account with the staffing company from which plaintiff purchased the debt. Defendant denied the allegations. Judgment for defendant after bench trial.
• Credit card company plaintiff sued credit card customer defendant for account stated and money lent based on unpaid credit card debt. Defendant denied the allegations. Judgment entered for plaintiff after bench trial.

• Plaintiffs sued two individuals, as well as three companies which owned and operated a restaurant, for defamation. They alleged that, following a verbal altercation at the restaurant in which death threats were made against the two individual defendant parents and their young children, defendants asked restaurant employees for the identity of the individual who made the threats, and the employees incorrectly identified one of the plaintiffs as the perpetrator. The individual defendants then made several statements on social media accusing plaintiffs of making or being involved in the making of the death threats against them and their children. Defendants denied the allegations. Settled at Mandatory Settlement Conference.

• Appeal of a decision of the Labor Commissioner in favor of plaintiff event employee awarding waiting time penalties and liquidated damages against large corporate employer. The decision in favor of the plaintiff employee was upheld, but with a revised damages award.
• Plaintiff, a thirty-year employee of defendant hospitality company, sought substantial compensatory and punitive damages from his long-time employer defendant for failure to accommodate his disability after he sustained serious spinal injury (outside of work). Defendant argued numerous accommodations were made. Resulted in substantial jury verdict in favor of plaintiff.
• Plaintiff high-level employee at the local office of defendant major recruitment company sued the company over allegations of interference with his plans to expand the local office, spreading falsehoods about him, and ultimately placing him on administrative leave without cause, breaching his employment contract. Employer denied all allegations. Settled at Mandatory Settlement Conference.
• Former employees of defendant credit union filed suit alleging wrongful termination, age discrimination, and retaliation. Plaintiffs alleged that they were each terminated based on the pretext that they had each handled low-value transactions involving family members, which their supervisors claimed was a policy violation. Defendant disputed the allegations and denied pretext. Jury verdict for one plaintiff; defense verdict for another.
• PAGA class action brought against two shoe companies on behalf of employees and former employees claiming that the companies failed to pay overtime or final wages and failed to provide accurate wage statements, meal and rest periods, and sick leave. Defendants argued that the alleged violations did not occur on a class wide basis, that policies were in place to provide accurate wage statements, meal and rest periods, and sick leave, and there was insufficient evidence that all wages earned were not paid. Settled class wide at Mandatory Settlement Conference.

• Plaintiff—a former employee of defendant public entity, who was also an immigrant from Afghanistan and devout Muslim—claimed that after he was transferred from one work location to another, he was subjected to numerous harassing comments on a daily basis based on his national origin, race, and religion. He further claimed retaliation. Defendant claimed plaintiff was released from his probationary period for unrelated reasons, including material misrepresentations on his application for employment. Settled at Mandatory Settlement Conference.
• Massage therapist plaintiff, who was a former employee of massage facility defendant, claimed that he was frequently subjected to explicit sexual advances and sexually harassing behavior by clients of defendant, which he repeatedly reported, and which defendant failed to address or prevent. When plaintiff informed defendant that he would be resigning, defendant gave plaintiff a final pay checks which bounced. Defendant denied the claims. Settled at Mandatory Settlement Conference.

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• Pet Custody Dispute: During the parties’ intermittent several year relationship, plaintiff gave defendant a dog as a birthday gift. After the relationship ended, plaintiff took possession of the dog and refused to return it or allow visits. Defendant asserted that the dog was hers, as the registration was in her name and she was the only one who took care of the dog. Plaintiff claimed the dog was his. Judgment for defendant.

• Out of state corporation plaintiff sought refund of transfer tax paid to municipality pursuant to local ordinances, arguing that the change in the ownership of the real property at issue was not a qualifying “transfer,” and was simply given to a subsidiary, so ultimate ownership remained the same. Plaintiff also alleged that the subsequent sale of fractional ownership shares, while contemplated in the same agreement as the alleged transfer, should be considered separate transactions. Municipal defendant argued that the subsequent sale of fractional ownership shares must be treated as part of a single transaction for tax purposes and that the ownership interests changing via the fractional share sales qualify the entire transaction as a transfer. Defense verdict following bench trial (later upheld on appeal).
• Following protracted litigation between the heirs of decedent, who claimed the decedent died as a result of medical malpractice, and a public entity which owned and controlled the medical facility at which the relevant care was provided, the case settled with assent from the entity’s representative and plaintiffs. Following the settlement and a long period where non-party heirs were found and their signatures sought and obtained, the governing body of the public entity still had not approved the settlement and no settlement funds had been paid. Plaintiff sought to enforce the settlement agreement. Settled at further Mandatory Settlement Conference.

• Elderly plaintiff living in assisted living community filed suit against insurance company defendant for bad faith termination of long-term care benefits, breach of the covenant of good faith and fair dealing, breach of fiduciary duty, and negligent misrepresentation. Defendant claimed plaintiff did not meet the contractual benefit eligibility requirements. Settled following extensive motions in limine.

• Plaintiff tenants filed suit alleging that defendant landlord wrongfully evicted them from their long-term residence. Plaintiff claimed that the owner move-in exception to the Rent Ordinance did not apply, as the defendant had an apartment elsewhere. Owner disputed all claims. Verdict for the defense.
• Plaintiff tenant allegedly suffered injuries when he fell down stairs owned by landlord defendants and sustained a broken ankle requiring surgery. Plaintiff claimed the stairs were too steep, too shallow, and lacked a handrail, all of which made them hazardous and all of which the landlords knew. Landlords disputed liability and damages. The jury returned a defense verdict.
• Group of plaintiff subtenants in a multiunit residential building sued master tenant defendant, alleging an illegal agreement with the property owner to evict plaintiffs from the property in exchange for forgiveness of master tenant’s back rent and termination of the master lease. Plaintiffs claimed tenancy and wrongful eviction. Defendant argued plaintiffs had no legal tenancy and must leave the premises. Settled at Mandatory Settlement Conference.
• Two consolidated commercial real estate disputes between corporate landlords and corporate tenants over alleged failure to pay additional charges above the base rent as set forth in the lease. Tenant defendant argued that landlords’ claims were time barred, and that any which were not time barred were offset by overpayments and breaches of the implied covenant of quiet enjoyment. Judgment for landlord plaintiffs following bench trial.
• Residential complex landlord allegedly ignored reports of bed bugs infesting several units and failed to notify residents, and failed to implement adequate remediation measures, leading to the infestation lasting several months and allegedly resulting in the loss of substantial personal property, including a valuable memorabilia collection. Tenants brought suit for these failures, along with instances of tenant harassment in violation of local rent ordinance and violations of state health and safety laws. Landlord disputed claims. Settled during judicial settlement conference.

• Per plaintiff residential tenants, landlord defendants harassed and terrorized them during their tenancy, going so far as to enter the leased apartments without notice to intimidate plaintiffs and to transfer ownership in an attempt to avoid liability. Defendants denied the allegations. Jury verdict for plaintiffs including award of punitive damages (later upheld on appeal).
• Commercial landlord sought back rent and possession of the premises from commercial tenant. Tenant defendant claimed landlord plaintiff failed to timely repair the premises following a fire and that tenant was due an offset for rents paid during the repair period. Landlord disputed claims and damages. Verdict for plaintiff following bench trial.
• Residential tenant asserted habitability claims against landlord, including inadequate electrical and lighting systems, dangerous staircases and handrails, vermin in the walls, and clogged drainage pipes. Issues regarding notices of violations of municipal building codes. Landlord denied all claims. Settled following extensive rulings on motions in limine.
• Plaintiffs—a parent and minor children—filed suit against landlord and management company defendants, claiming that plaintiffs reported the presence of bed bugs in their residential unit to defendants multiple times, but defendants failed to institute effective or timely pest control measures, which led to plaintiffs contracting serious health problems. Defendants denied the allegations. Settled following motions in limine.
• Five consolidated cases each involving individual tenants’ claims against defendant residential real estate company landlord and contractors hired by the landlord. Plaintiffs claimed that the landlord purchased the property and then initiated substantial unnecessary construction on the property, which degraded the building’s structural integrity, left it unsafe to occupy, and led to the evictions of plaintiffs. Defendants denied that the building was unsafe or that the temporary evictions were unnecessary. Settled following extensive rulings on motions in limine.
• Music production company plaintiff alleged that it leased a commercial property from trustee landlord defendant to use as a music studio, but found that the property had substantial defects including asbestos, which defendant failed to remediate and which prevented the studio from opening for an extended period, causing plaintiff to lose business. Defendant argued that plaintiff knew substantial work would be needed to renovate the property when it signed the lease, and cross complained against plaintiff for failure to pay rent, property taxes, and insurance premiums, all required under the lease. Settled at Mandatory Settlement conference.

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• Plaintiff alleged that defendant was negligent per se when she ran a red light, collided with the side of plaintiff’s vehicle, and then fled, causing serious injuries including TBI and impacting plaintiff’s ability to work. Defendant disputed the extend of injuries. Jury verdict awarded, with lower damages than sought by plaintiff.
• Plaintiff tenant allegedly suffered injuries when he fell down stairs owned by landlord defendants and sustained a broken ankle requiring surgery. Plaintiff claimed the stairs were too steep, too shallow, and lacked a handrail, all of which made them hazardous and all of which the landlords knew. Landlords disputed liability and damages. The jury returned a defense verdict.
• Plaintiff sued major fitness company defendant, alleging that while working out at one of their facilities, a speed bag platform detached from the wall and struck plaintiff in the head, causing significant injuries. Defendant disputed extent of plaintiff’s claims. Settled at Mandatory Settlement Conference.
• Plaintiff driver was involved in three motor vehicle collisions in two years and sued several defendants including drivers, insurance companies, and a taxicab company. Her injuries were allegedly severe, including TBI, but there was a significant dispute over how much each collision contributed to her injuries. Following the settlements with other defendants, a substantial jury verdict for plaintiff was awarded against the one remaining defendant.
• Wrongful death case brought by relatives of decedent pedestrian against utility company after a truck owned by the utility collided with and killed the decedent. Settled at judicial settlement conference.

• Successor in interest and heirs of decedent sought damages for wrongful death due to asbestos exposure, allegedly caused by decedent’s work as a sprinkler fitter. Defendants—companies which allegedly manufactured, distributed, and installed asbestos-containing products with which decedent came into contact—denied all allegations. Settled after motions in limine.
• Plaintiff public transportation passenger filed suit against defendant municipality claiming that she was injured when a bus door closed on her leg. Defendant denied liability. Defense verdict following jury finding that defendant was not negligent.
• Plaintiff alleged that he was exposed to asbestos-containing products via his father, who had been a plumber who regularly used asbestos-containing products, and who regularly drove plaintiff in his work vehicle, which was regularly covered in asbestos-containing dust. Defendants—manufacturers and sellers of asbestos-containing products—denied liability and disputed damages. Settled following Court rulings on motions in limine.
• Elderly plaintiff sustained injuries on a municipal bus when another passenger ran over her foot and ankle with his wheelchair after the driver failed to stop when asked. Defendant municipality denied it was liable for plaintiff’s injuries. Jury verdict in favor of defendant.
• Premises liability case where plaintiff hotel guest slipped on a wet floor, fell, and fractured her arm, which required at least two surgeries to repair. Hotel defendant denied liability. Settled following extensive rulings on motions in limine.
• Plaintiff, a visitor to a condominium complex controlled by defendant homeowner association, slipped on liquid in the entry way of the complex and sustained serious injuries, including severed tendons from glass bottles he had been carrying which shattered, requiring numerous surgeries. Jury verdict for plaintiff with comparative fault findings.
• Plaintiff parents of minor student brought dangerous condition of property claims against school district after bicyclist ran into minor student while he was in physical education class, causing multiple broken bones requiring multiple surgeries and hospital stays. Settled at Mandatory Settlement Conference.

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• Plaintiffs, close friends of the decedent, alleged that decedent asked them to relocate from England to San Francisco to care for decedent as his health declined. They claimed decedent made oral promises to provide for them. Decedent, who owned a high-value real estate portfolio, allegedly promised to give plaintiffs a substantial amount of money and one of his homes as compensation. Plaintiffs also alleged that the decedent later agreed to double the compensation. After the decedent's death, the plaintiffs filed a lawsuit for breach of oral contract against the executors of the estate. The executors disputed the claims and argued no liability as the alleged agreement was not in writing. Jury Verdict for plaintiffs.

• Real estate broker defendant allegedly failed to disclose to plaintiff client that the seller’s disclosures regarding the piece of property they were evaluating were materially incomplete. Defendant also had failed to verify the seller improvements described in the disclosures, but continued to recommend the transaction to plaintiff nevertheless. Defendant disputed the allegations. Settled at Mandatory Settlement Conference.
• Plaintiff client alleged inadequate legal representation and negligence on the part of out-of-state attorney defendant who formerly represented plaintiff in federal action. Defendant cross-complained for non-payment of fees and costs. Following settlement of complaint, action for fees and costs was tried to verdict for defendant/cross-complainant.
• Plaintiff, an accountant and former client of defendant attorney, claimed that defendant was retained to represent his interests as a creditor of a company in bankruptcy proceedings, but failed to file necessary documents, resulting in the bankruptcy court denying plaintiff’s claim. Defendant claimed plaintiff’s claims against the debtor were not meritorious and disputed damages. Settled at Mandatory Settlement Conference.
• Buyers of condominium unit claimed that their former real estate broker misrepresented and/or failed to notice that the disclosures sent by sellers were legally insufficient and incomplete, which resulted in the buyers needing to spend significant sums to repair undisclosed defects in the unit. Broker cross-complained for equitable indemnity against the sellers. Settled at Mandatory Settlement Conference.

• Partition action brought by one co-owner against the other for partition by sale of a residential property, including allegations of mismanagement and a request for an accounting. Settled at Mandatory Settlement Conference.
• Plaintiffs alleged that they paid for part of a residential property together with defendants, and also contributed personally to its improvement, but were not repaid or compensated when defendants fraudulently conveyed the property to a third-party. Settled at Mandatory Settlement Conference.
• Quiet title action brought by plaintiff occupant of residential property who claimed adverse possession of the former home of his aunt, who he lived with and assisted in the last few years of her life. Following her passing, plaintiff continued residing there for years and allegedly performed all necessary functions for adverse possession. Defense verdict as to adverse possession, but award of equitable lien to plaintiff.
• Quiet title and partition action by plaintiff co-owner against defendant co-owner of a residential unit in a larger condominium complex. Defendant cross-complained for breach of contract and specific performance, alleging that plaintiff had agreed to sell his interest in the unit, but reneged on the agreement. Settled at judicial mediation.