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mistake as additional causes of action. In total, the amended
complaint raised 16 separate causes of action.
The defendants filed their answer and a cross-complaint on
December 23, 1997. The cross-complaint alleged breach of
contract, conversion, and breach of covenant of good faith and
fair dealing as causes of action against petitioner. Petitioner
filed a status conference report on January 2, 1998, stating that
the nature of the case was in contract and tort. Petitioner
filed a second status conference report on March 5, 1998, and
included a statement of the nature of the case as rescission or
reformation of written contracts, breach of covenant of good
faith and fair dealing, declaratory relief, quantum meruit,
slander per se, constructive trust, conspiracy, intentional
infliction of emotional stress, and injunctive relief.
Petitioner filed an answer to the defendants’ cross-complaint on
March 6, 1998.
Settlement of the Lawsuit
In March 1998, retired California State Superior Court Judge
Richard Gilbert conducted a mediation with the parties. In
attendance at the mediation were petitioner, petitioner’s counsel
Thomas Casazza, petitioner’s accountant Robert K. Stevenson
(Stevenson), the defendants, and their counsel Gregory Dyer
(Dyer). Judge Gilbert suggested during the mediation that
petitioner add a personal injury claim to the suit as a vehicle
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