New Settlement Case, 6-3-25

I help California lawyers get excellent results several ways:

• I serve as a mediator, arbitrator and referee with ADR Services, Inc. 
• I publish California Case Summaries™ to help California attorneys save time, know more, and win more cases by always knowing the new case law in their practice areas.
• In my Trial Alchemy™ podcast, I interview outstanding plaintiff and defense civil trial lawyers and civil trial judges who are ABOTA members to help lawyers to learn from civil jury trial experts. 

New CA Settlement Case

Which party bears the risk of loss when an imposter causes one party to a settlement to wire settlement proceeds to the imposter instead of the other settling party?

Last month, the California Court of Appeal decided this issue of first impression. Below is my one-paragraph summary of this new decision:

Thomas v. Corbyn Restaurant Development Corp. (2025) __ Cal.App.5th __, 2025 WL 1499055: The Court of Appeal decided the following issue of first impression in California: Which party bears the risk of loss when an imposter causes one party to a settlement to wire settlement proceeds to the imposter instead of the other settling party? The Court of Appeal affirmed the trial court’s order granting plaintiff’s motion to enforce the terms of a settlement under Code of Civil Procedure section 664.6 and requiring defendants to pay plaintiff $475,000. After the case settled, an unknown third party purporting to be plaintiff’s counsel sent “spoofed” emails to defendants’ counsel providing fraudulent wire instructions for the settlement proceeds. Defendants’ counsel wired the settlement proceeds to the fraudulent account and the third party absconded with the funds. Once the fraud was discovered, plaintiff asked for the settlement money, but defendants refused to pay. The trial court noted the lack of California authority on this topic and applied persuasive federal case law that uniformly shifts the risk of loss to the party in the best position to prevent the fraud. Looking at the totality of circumstances, the trial court granted the motion finding that defendants were in the best position to prevent the fraud and plaintiff bore no comparative fault. The Court of Appeal concluded that the authority on which the trial court relied was persuasive and the trial court properly applied it. (C.A. 4th, May 27, 2025.)

Mediation, Arbitration and Referee Services

I help attorneys and their clients throughout California as a mediator, arbitrator and referee at ADR Services, Inc. handling business, commercial, employment, insurance, probate, real property, and tort cases. As a civil trial lawyer since 1980 I've represented plaintiffs and defendants in these areas. I've been a member of the American Board of Trial Advocates (ABOTA) since 1995, I've tried over 100 civil cases including numerous civil jury trials, and I'm a past president of the San Diego County Bar Association and the San Diego Chapter of ABOTA. To schedule a new matter, please contact one of my case managers at ADR services, Inc.:
Haward Cho, [email protected], (213) 683-1600, or
Rachael Boughan, [email protected], (619) 233-1323

When you conduct a half-day or full-day private mediation or arbitration with me you'll get a free 5-month subscription (a $1,000 value) to my unique civil case summary publication California Case Summaries™.  

California Case Summaries™

Best regards,
Monty A. McIntyre, Esq.
Mediator, Arbitrator & Referee
Podcaster: Trial Alchemy™ Learn from Civil Jury Trial Experts.
Publisher: California Case Summaries™ Save Time. Know More. Win More.
ABOTA Member Since 1995
Past President: San Diego County Bar Assn.
Past President: SD ABOTA Chapter
Phone: (619) 990-4312. Email: [email protected]