Facts

David Oranen, a 45-year-old chiropractor, sued his mother, Diane Bruckman over an alleged real estate investment purchase of a four-story office building located on Front Street in San Diego. The property was purchased in February 1994 under BruckmanÆs name. The complaint alleged that Oranen gave Bruckman $275,000, representing half of the purchase price, in exchange for her oral agreement that she would manage the building, keeping the rents, and that they would share in the profits equally when the building eventually was sold. Once the property was acquired, Bruckman executed and delivered a grant deed to Oranen giving him a 50% undivided interest. In March 1999, Oranen transferred his interest to Wan Inc., a Nevada corporation in which he was the sole shareholder. In June 2000, Oranen executed a quit claim deed on behalf of Wan that conveyed WanÆs interest to Bruckman. Shortly thereafter, Bruckman recorded the Wan transfer, giving her what appeared to be record title. In March 2004, Bruckman sold the building to co-defendant Reza Mashayekhi for $2,925,000. The complaint against Bruckman and Mashayekhi alleged causes of action for fraud, money had and received, conversion, quiet title, an accounting, and equitable relief.

PLAINTIFF CONTENTIONS:
Oranen contended that on the day he executed the quitclaim from Wan to Bruckman, that Bruckman gave Oranen a grant deed conveying a 50 percent interest to Oranen, thereby making their ownership interests the same as they always had been. He further contended that the deed was not recorded at BruckmanÆs request and that it was later lost, misplaced or stolen. Oranen claimed he knew nothing of the sale to Mashayekhi and that Bruckman gave him no part of the sale proceeds. Oranen presented evidence that documents pertaining to Bruckman's divorce to William McClain contained representations that Oranen had a 50 percent ownership interest in the building. McClain's deposition testimony supported Oranen's version of events. To show Bruckman's lack of maternal affection, Oranen introduced evidence that Bruckman placed Oranen in an orphanage when he was seven years old while she lived and studied in Europe.

DEFENDANTS CONTENTIONS:
Bruckman contended that any money that Oranen gave her in 1994 was a loan that she repaid shortly thereafter. Bruckman challenged OranenÆs failure to have any documentation to support his alleged cash contribution to the purchase price or to support his assertion that he was entitled to a 50 percent interest. Bruckman claimed she did not participate in the second transfer in June of 2000 and that the reason Oranen quit-claimed Wan's interest to Bruckman was that he never really had any ownership interest in the building. Bruckman introduced evidence that Oranen's chiropractor license was revoked in 1998 due to insurance fraud, that he had outstanding issues with the Internal Revenue Service, and that he had a brief history of drug abuse.

Settlement Discussions

A settlement offer of $25,000 was made pursuant to Code of Civil Procedure Section 998.

Damages

Oranen sought $1,462,500, representing half of the proceeds from the sale in 2004. Oranen additionally sought $100,000 for a different loan he contended he gave to Bruckman but that was never repaid. Oranen also sought punitive damages based upon fraud.

Result

The jury found that Oranen contributed 50% to the purchase price of the building in 1994 and that it was not a loan. Oranen was awarded $1,462,500, representing half of the sale proceeds, minus an offset of $6,000 to dismiss a claim against Mashayekhi. He also was awarded $200,000 in punitive damages, resulting in a total award of $1,756,500.

Other Information

A motion for a new trial was denied and OranenÆs motion for prejudgement interest and costs was granted. An appeal is pending.

Deliberation

five hours

Poll

12-0 (liability), 12-0 (damages)

Length

five days