Confidential
Settlement – $4,100,000Judge
Court
Contra Costa Superior
Attorneys
Plaintiff
Defendant
Experts
Plaintiff
George Forni
(technical)
Thomas G. Kimbrell
(technical)
Defendant
Charles Addison Stewart III
(technical)
Facts
In 2000, the defendants sold a home in Orinda to the plaintiffs for $3.3 million. The property included a lake and
a partially completed guest house. The co-defendant Coldwell Banker was the real estate broker representing
the plaintiffs.
The plaintiffs alleged inadequate disclosure and fraud regarding problems with the lake, the illegality of the
guest house and construction-related defects.
The defendant sellers had unsuccessfully sued the previous owners in 1994 for the same
defects, but the arbitrator had determined there were no defects. The defendant sellers claimed
that they had disclosed the defects both orally and in writing and that they had been advised by
many real estate brokers, including the co-defendant Coldwell Banker, that they need not
disclose the prior lawsuit because of its findings of no defects. The plaintiffs sued claiming
breach of fiduciary duty.
Settlement Discussions
The plaintiffs initially demanded $4.3 million at the mediation; there was no offer at a presuit mediation.
Damages
The plaintiffs asserted that they had improved the property with approximately $200,000 in upgrades.
Result
After three days of mediation with Judge Richard L. Patsey of JAMS, the parties reached a $4.1 million settlement which included a "buy-back" package with the defendant seller paying $3.5 million, for title to the improved property, and with Coldwell Banker paying $600,000.
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