Facts

On Oct. 15, 2003, plaintiffs ABC-Learn Inc. and Debra Greenfield entered into a written lease agreement with defendant Elias Coronado for the premises at 134 North Malcay Avenue, San Fernando, California. The agreement included an option to purchase the property and required plaintiffs to tender their intent to exercise this option within the first three years of the lease. The plaintiffs notified Coronado of their intent to exercise the purchase option on Sept. 15, 2003. Subsequently, the plaintiffs opened an escrow to purchase the property. When Coronado failed to convey the property, the plaintiffs filed suit against him for specific performance.

Coronado filed a cross-complaint against the plaintiffs alleging breach of contract, breach of implied covenant of good faith and fair dealing, fraud, concealment and elder abuse and seeking declaratory relief and judicial determination of the parties' contractual rights and duties.

PLAINTIFFS' CONTENTIONS:
Plaintiffs claimed Coronado breached the contract by refusing to sell.

DEFENDANT'S CONTENTIONS:
Coronado contended that he had fully performed under the contract and that the plaintiffs had breached by allowing the use of inherently dangerous carcinogens on the property causing damage to the property and reducing its value. Coronado contended that the plaintiffs had made repairs as well as improvements that violated the terms of the lease, as well as failed to maintain and repair the property, were frequently late with rent payments, delayed rent payment through improper delivery, and improperly withheld rent. Coronado claimed that, being over 65 years old, plaintiffs had a duty to inform him of the true value of the property.

Result

On the plaintiffs' claim for specific performance, the court found specific performance was inappropriate because the plaintiffs' conduct indicated they had unclean hands. On Coronado's cross-complaint, the jury found for the plaintiffs on the charges for breach of contract, breach of implied covenant of good faith and fair dealing, fraud and concealment, and elder abuse. However, the jury awarded Coronado $10,000 in punitive damages. The judge rejected these damages no tort was found to have been committed on which to base the punitive damage award. Judgment was entered for Coronado for declaratory relief, and the court declared he was under no obligation to convey the property to the plaintiffs.

Other Information

FILING DATE: July 5, 2007.