Diamond Claims & Investigation Services, Inc. - Page 30

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          tions in the pretrial order relating to their claims against FIG            
          for breaches of contract, indemnity, and fraudulent misrepresen-            
          tations.                                                                    
               In the pretrial order, the Diamonds, as well as DCI, were              
          identified as the plaintiffs in the Farmers lawsuit.21  In that             
          order, those plaintiffs raised claims against FIG for, inter                
          alia, breaches of contract and fraudulent misrepresentations and            
          sought damages from FIG with respect to those claims.22                     
               With respect to the plaintiffs' claims against FIG for                 
          breaches of contract, the pretrial order alleged, inter alia:               
          (1) That the plaintiffs were parties to, bound by, and entitled             
          to the benefits of the agreement at issue in the Farmers lawsuit;           
          (2) that DCI had started ETS during 1982 for the purpose of                 
          providing transcription services to FIG in connection with the              
          investigative work that it was performing for FIG; (3) that DCI             
          had thereafter transferred ownership of ETS to the Diamonds;                


          21  Respondent contends that ETS was not identified as a plain-             
          tiff in the Farmers lawsuit.  That ETS was not so identified does           
          not preclude our finding that the Diamonds were the plaintiffs in           
          the Farmers lawsuit in their capacity as the owners of ETS or               
          that they were awarded damages in that capacity.                            
          22  We note that, at an early stage in the Farmers lawsuit, the             
          plaintiffs apparently recognized that the initial complaint and             
          the amended complaint were deficient insofar as those complaints            
          indicated that the allegations in support of their claims of                
          breaches of contract and fraudulent misrepresentations and in               
          support of the damages sought on account of those claims were               
          made solely by DCI, and not by the Diamonds, and they corrected             
          those deficiencies in the second amended complaint and in the               
          pretrial order.                                                             




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