Kurtin

BACKGROUND

1. The 2005 Settlement Agreement Kurtin and Elieff had been equal partners in a series of real estate ventures in the 1990‟s, doing business under the rubric of SunCal Companies. In 2003, growing 2 disagreements between the two led Kurtin to sue Elieff to “separate” themselves. By that time SunCal Companies had already been “transformed” into “basically” Elieff‟s company. The litigation led to a mediation, which in turn led to a settlement agreement. The agreement, signed in August 2005, provided that Elieff was to buy out Kurtin for $48.8 million in four installment payments. As Kurtin and Elieff structured their partnership, each real estate project was its “own little company.” The settlement agreement provided that of the $48.8 million, both Elieff and the Joint Entities were jointly and severally responsible for the first installment of $21 million. However, only the Joint Entities were responsible for making the last three installments.

2. Default on the Payments Elieff made the $21 million first and only installment payment for which he could be held personally responsible. The Joint Entities made the $1.8 million second installment payment for which they alone…