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Real Property
Negligence
Failure to Disclose

John Wigmore v. Pacific Materials Laboratory of Santa Barbara

Published: Feb. 8, 2001 | Result Date: Jan. 10, 2001 | Filing Date: Jan. 1, 1900 |

Case number: 1002147 Verdict –  $0

Judge

James W. Brown

Court

Santa Barbara Superior


Attorneys

Plaintiff

Edwin M. Moore


Defendant

John A. Simpson


Experts

Plaintiff

Robert M. Pride
(technical)

Defendant

Mark D. Hetherington
(technical)

David Samppala
(technical)

Facts

The defendants prepared a foundation exploration report for a vacant parcel of land. Two years later, the plaintiff
purchased the land and allegedly relied on the defendantÆs report in making his decision. The plaintiff wanted
to build on the parcel, but later decided not to. During the process of selling the home, the defendants were
asked to update their foundation exploration report for the potential new purchaser.
The defendants advised the prospective purchaser of additional information about the property and the potential
purchaser backed out. The plaintiff then sold the land at a loss of $210,000 and claimed that the defendants
should have disclosed the information in the original report.

Settlement Discussions

The plaintiff demanded $800,000 at mediation; reduced to $550,000 during trial. The defendant offered $50,000.

Damages

The plaintiff sought the difference in value between what he paid for the property and how much he sold it for; all expenditures during his eight years of ownership including attorneys fees for a specific performance action he filed to get title and losses from the avocados farming on the property and prejudgment interest.

Other Information

The plaintiff has indicated he is contemplating a motion for new trial. The case was plead as one for professional negligence against the defendant geotechnical engineer. The plaintiff alleged that a foundation exploration report prepared for a previous owner did not fully describe the soil and geology. The plaintiff alleged he purchased the vacant land in reliance on the report. The case went to the jury on a theory of negligent misrepresentation. The jury found that the representations in the report were neither false nor misleading. <E>Robert Pride, geotechnical engineer for plaintiff, testified that the standard of care required more complete disclosures. Mark Hetherington, geotechnical engineer for defendants, testified that defendants conduct was consistent with the standard of care for geotechnical engineers practicing in Santa Barbara at the period of time in question.</E>

Deliberation

two hours

Poll

12-0 (as to defendant Ron Pike), 10-2 (as to defendant Pacific Materials)

Length

six days


#106775

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