Murris Johnson III v. Congress Mortgage Company, et al.
Published: Apr. 6, 1996 | Result Date: Jan. 12, 1996 | Filing Date: Jan. 1, 1900 |Case number: 7263770 – $2,087,000
Judge
Court
Alameda Superior
Attorneys
Plaintiff
Defendant
Experts
Plaintiff
Scott Behiel
(technical)
Defendant
Robert Gaddis
(technical)
Facts
In January of 1991, the defendant, Congress Mortgage Company, solicited the plaintiff, Murris Johnson III, a 30-year-old handyman, to refinance his home even though the plaintiff had no income. The defendant told the plaintiff he needed a new loan because the existing lender was in FSCIC receivership. The defendant charged the plaintiff 14% interest and 15 points on the loan. The plaintiff used the loan money to pay the existing mortgage and buy another home from his widowed aunt. Within a month, the defendant also made the plaintiff a loan secured by that home. When the plaintiff was unable to make payments on either loan, two months later, the defendant made the plaintiff a third loan to cure the defaults. Within six months, the defendant initiated foreclosure on both of the properties. The plaintiff filed for bankruptcy but the defendant ultimately foreclosed on the properties in March of 1993. The plaintiff brought this action to set aside the foreclosures, void the notes and for damages under fraud and breach of fiduciary duty theories or recovery.
Settlement Discussions
The plaintiff made a $220,000 (title) and $100,000 (fees) settlement demand. The defendant made no offer.
Damages
The plaintiff claimed loss of home equity valued at $220,000 and emotional distress as a result of the defendant's action.
Other Information
The verdict was reached approximately two years and two months after the case was filed.
Deliberation
12 hours
Poll
12-0
Length
11 days
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