Gavin

BACKGROUND

This case arises out of the purchase of a liquor store business in San Francisco, California (the Business). In July 2016, Sellers entered into a purchase agreement to sell the Business to Buyers for $130,000. At this time, Sellers were leasing the property at which the Business operated. Under the purchase agreement, Sellers would assign or transfer their lease to Buyers, but if the landlord declined to transfer the lease to Buyers by October 31, 2016, the agreement would be cancelled. Buyers made an initial payment of $60,000 towards the purchase price. Sellers financed the balance of the purchase price, which Buyers agreed to pay in monthly installments of $10,000. Sellers contend that Buyers stopped paying after making one payment. On July 10, 2018, Sellers, represented by Wynns, filed a civil action in San Francisco Superior Court against Buyers for breach of contract (the Prior Action). Sellers obtained a default judgment after Buyers failed to file a response in the Prior Action. Sellers then obtained an order of sale for a property owned by Buyers and an order for assignment of rents against Buyers. Sellers then commenced collection efforts. On September 4,…