Confidential
Settlement – $250,000Judge
Court
L.A. Superior Pomona
Attorneys
Plaintiff
Defendant
Elaine K. Fresch
(Hawkins, Parnell & Young LLP)
Experts
Defendant
Richard W. Rauseo
(technical)
Beni Monaco
(technical)
Wayne Foss
(technical)
Facts
The subject of this lawsuit was a 32-unit apartment complex built in 1985 by Defendant. The Plaintiffs, an elderly retired couple, bought the complex in 1989 for retirement income. The purchase price was $2,700,000. At the time of escrow, Defendant failed to disclose that access to the garages was over Los Angeles County property; and the county demanded payment for the use of their land. Plaintiffs settled by paying the county $55,000 for the easement (negotiated by Defendant developer). In addition, Plaintiffs discovered that the central air system was defective and required the replacement of the plumbing throughout the entire structure.
Settlement Discussions
Plaintiffs contend they demanded $275,000 plus forgiveness of the deed of trust and Defendant initially offered $60-70,000 plus easement with the county and then offered $250,000. Defendant developer contends its offer was $250,000 including $55,000 easement payment to the county; and Plaintiffs demanded rescission of the purchase of $2,700,000 and all related amounts; Plaintiff alternatively demanded $700,000 for plumbing issues and resolution of the easement issue.
Damages
$375,000 (per Plaintiff), $2,700,000 (per Defendant developer)
Other Information
The value of the deed of trust at the time of forgiveness was $125,000.
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