Facts

In January 2007, plaintiff Evelyn Canonizado, purchased vacant land, located in Fremont, from defendants Niaz Tony Baig and Sameena Baig for $3.6 million. The Baigs held a $732,000 carry-back note. Plaintiff purchased the land with the expectation that she would be developing 12 townhomes. Plaintiff alleged she was told permits had been issued and construction would begin within 60 days of the close of escrow.

Subsequent to her purchase, plaintiff alleged that she discovered that the permits had not been issued and that construction would not begin in 60 days. Permits were never obtained and construction never commenced.

The property was subsequently lost in foreclosure because plaintiff failed to make payments on the construction loan.

Plaintiff filed suit for negligent misrepresentation, concealment, intentional misrepresentation, and breach of fiduciary duty. Naiz Baig cross-claimed for the carry-back note.

PLAINTIFF'S CONTENTIONS:
Plaintiff claimed that defendants Mohammed Rajput and Century 21 El Camino, her real estate agent, and the Baigs misrepresented the status of permits and plans for the 12-townhome development project and when construction was to begin.

DEFENDANT'S CONTENTIONS:
Rajput, Bruce Martin, and Century 21 argued that all statements made prior to the close of escrow regarding the status of the permits and plans, were made based on information obtained directly from Niaz Baig. Defendants further contended that plaintiff obtained her own contractor to review and advise plaintiff on the status of the permits and plans.

Defendants also contended that the cause of plaintiff's damages was her failure to pay on her loan and refusal to pay designated professionals and not because of any alleged misrepresentations.

Settlement Discussions

Plaintiff's last demand was $610,000. Rajput, Martin, and Century 21 El Camino's last offer was $30,000. Naiz Baig demanded $732,000.

Damages

Plaintiff sought to recover her $610,000 down payment. Naiz Baig demanded $732,000 from plaintiff on the carry-back note.

Result

Defense verdict in favor of Niaz and Sameena Baig, Bruce Martin, Mohammad Rajput and Century 21 El Camino on the negligent misrepresentation, concealment, intentional misrepresentation, and breach of fiduciary duty causes of action. The jury found that plaintiff's damages were the result of her failure to pay and move the development project forward, not as a result of any alleged misrepresentations. The Baigs also to recover damages against plaintiff based on the $732,000 carry-back note. Plaintiff is to recover damages against Sameena Baig on a $180,000 promissory note. Defendants are to recover costs against plaintiff.

Other Information

Motion by Niaz Baig for attorneys fees against plaintiff pursuant to contract is pending. The rescission cause of action was tried simultaneously; the court found for the seller.

Deliberation

1.5 days

Poll

10-2 (defense on intentional and negligent misrepresentation, concealment and breach of fiduciary duty)

Length

4.5 weeks