So as a result, Little filed a second lawsuit against Pullman in 2008 for breach of contract and fraud, which prompted Pullman to again attempt to bring the matter into arbitration. Pullman pointed to the arbitration clause in the original agreement. Little pointed to the settlement agreement, which did not have an arbitration clause. The judge agreed with Little, and in 2011, a California appeals court affirmed that the settlement had ended the effectiveness of the original agreement’s arbitration provision.
But that didn’t end matters, because six weeks after the appellate ruling, Pullman sent a notice of rescission of the settlement agreement, citing failure of consideration and fraud in the inducement, and attempting to “tender” a return of the $42,500.
Pullman didn’t simply give Little the money. Instead, he made a check available for pickup at his company’s and attorney’s office. Pullman then filed a cross-complaint for breach of contract over pre-settlement residual money and sought to affirm the rescission of the settlement agreement. Pullman also claimed that Little had committed tax fraud, among other allegations.
And then again, for the third time, Pullman demanded arbitration, arguing his rescission of the settlement agreement reinstated the original agreement, along with its arbitration provision. Pullman also stated he tried to send Little a check for $42,500 but Little rejected it, informing his adversary that he didn’t see it as payment.