Barnes v. Morales, et al
Dec 03, 2008OUTCOME: Judgment for plaintiffs for $347,885 + fees & cost
Represented buyers of commercial/residential property in fraud and breach of contract claims against seller and real estate agents. Plaintiffs paid $725,000 for the property. The seller overstated the ... rent collected from 2 residential tenants and failed to disclose that a metal canopy had been installed without the required permit. Plaintiffs settled with both the listing and selling agents for $30,000 after two mediations and before trial. The seller's highest pretrial offer was $50,000. During the three day bench trial, our appraiser testified that the property was worth $430,000 at the close of escrow. The seller's expert, a real estate broker, testified that the property was worth the price paid and the seller's $433 per month overstatement of the rental income did not affect the value. On December 3, 2008, the last day of trial, the judge ruled that the plaintiffs were entitled to breach of contract damages of $25,466 for the replacement cost of the metal canopy, to compensatory damages for fraud of $295,000 (the difference between the price paid and the value of the property at the time of the sale per plaintiffs' appraiser), to punitive damages of $56,419 and to attorney fees and costs. At a post trial motion, the judge awarded 100% of the fees and costs requested by the plaintiffs and commented that the fees were reasonable and the case was exceptionally well tried by plaintiffs' counsel. This case was tried in Los Angeles Superior Court before the Honorable John P. Shook. As a result of the appraisal and the judgment, the plaintiffs were successful in having the LA County Assessor reduce the assessed value of their property from $725,000 to $430,000, retroactive to the 2006 purchase date, resulting in a substantial savings in property taxes. The total recovery, including pretrial settlements, fees and costs (and excluding the property tax reduction) was $448,841
