Facts

In 2005, plaintiff Joel Klutch purchased a house in Oakland for $615,000, with a brokerage fee of $16,760. Klutch contended that he made the purchase based on the assurances of defendants Scott and Amy Kinney, for whom he had been working as a notary, that the price was fair.

After discovering that the price was allegedly inflated and that the Kinneys benefited from his purchase, Klutch filed suit against the Kinneys, HiddenBrooke Mortgage & Realty Inc, GLO Enterprise, Gregory Orr, and Wanda Kidd for fraud.

Kidd and Financial Title settled out of the case for $5,000.

PLAINTIFF'S CONTENTIONS:
Klutch claimed the actual value of the property was $455,000, with $160,000, the amount inflated, going to GLO. Had Klutch known of the actual value, he claimed he wouldn't have consummated the purchase. Klutch claimed Kidd, an employee of Financial Title Co., prepared closing statements to conceal the difference in price from him.

Klutch claimed Scott assured him his monthly payment would not increase, but if it did, Scott would supply Klutch with funds for the difference for one year. Klutch contended that he received $46,000 in assistance from Scott for nine or 10 months, but not for the entire 12-month period, as per an agreement.

DEFENDANT'S CONTENTIONS:
Orr and GLO denied and wrongdoing. The defense contended, and Klutch admitted in deposition, that Klutch had, in his role as a notary, been complicit in several previous fraudulent schemes with the Kinneys.

Damages

Klutch sought $114,000 in recovery, the actual purchase price of the property that was inflated less the advance he was given. He also sought punitive damages and costs.

Result

The court found that the Kinneys, Orr, GLO, and HiddenBrooke committed fraud and found them jointly and severally liable for $114,000 in compensatory damages, $70,836 in prejudgment interest, $1,186 in costs, and $500,000 in punitive damages. The total amount awarded was $686,022.