Dousette

BACKGROUND

The complaint and first trial Plaintiffs filed this action on August 28, 2001, against defendants as well as Café Concepts, Inc. (Café Concepts), California Tortilla Fresh, Inc. (Tortilla Fresh), California Pride Foods, Inc., and Rick Armstrong (Armstrong). 2 Mary and Michael are married and James and Lynn are married. Armstrong provided tax services to James and Lynn and to the corporate defendants. The complaint alleged that in 1996, plaintiffs, defendants, and Armstrong began negotiations to own and run a number of franchise stores based on a “concept-style” food

1We use first names to prevent confusion because some of the parties have the same last name. By doing so, we mean no disrespect. 2 The trial proceeded against James and Lynn only because plaintiffs requested defaults against the corporate defendants in November 2001 and a dismissal without prejudice as to Armstrong in March 2004.

2 operation, which had been developed by James. The parties formed Tortilla Fresh in 1996 for this purpose pursuant to an agreement, which called for the opening of five corporate locations. Pursuant to the 1996 agreement, Mary was required to obtain financing and serve as…