News Details
Lawrence D. Esten Wins Dramatic Real Estate Defense Verdict in Orange County
The firm's client, a large Orange County real estate brokerage firm, was sued for misrepresentation, breach of fiduciary duty, breach of contract, and negligence originating from plaintiff's decision to cancel the sale offer of a debt-laden property. Lawrence D. Esten, a partner in the firm's Irvine office, acted as lead defense counsel at trial.
The plaintiff had inherited a home which he intended to sell for more than $1M in 2012. Plaintiff did not disclose to the agent, and allegedly was not aware, that there was an active $250,000 home equity line of credit which would have to be repaid from sale proceeds upon purchase of the property, in addition to repayment of an $820,000 mortgage. Plaintiff decided to cancel the sale at the eleventh hour, despite the fact that the house was in escrow and about to close. The would-be home buyers sued the vacillating home owner and settled out-of-court. The cold-footed seller alleged that he never opened mail pertaining to the home equity line of credit. The seller blamed his agent for the debacle, despite the fact that the agent had inquired directly regarding the home equity line, only to be reassured by the client that it had "never been touched." The seller, as plaintiff, asked the jury for $300,000 in compensatory damages, as well as punitive damages. Plaintiff's attorney's last pretrial demand a few weeks before trial was $250,000.
On October 21, 2015, after an eight day trial which began October 5, the Orange County jury returned a verdict in favor of the firm's client, which denied all of plaintiff's claims. In addition, Mr. Esten pursued a cross-complaint for the commission and obtained a jury award of $28,000 on behalf of his client.