Facts

In October 2005, plaintiff Sek Keng Tan, 60 years of age, was president of Hillsdale Car Wash. Tan decided he wanted to sell his car wash business and sought the assistance of defendant broker David Lee. Tan's lease provided that the landlord of the property could terminate the lease if tenant sold its business. Tan was not the landlord but rather had a five-year lease with the option to renew and had leased the place for one year.

Lee asked Wendy Ng, an agent for EJL, a company doing business as Coldwell Banker Peninsula to assist with the sale. Lee found a buyer for the business. Tan's landlord then terminated the lease in November 2005 upon learning of the sale. In 2006, the landlord then sold Tan's business to the same buyer Lee had found for $800,000.

Tan sued Lee, Ng and EJL for negligence, breach of fiduciary duty and negligent interference with prospective economic advantage resulting in economic loss. Plaintiff dismissed the negligent interference claim at trial.

PLAINTIFF'S CONTENTIONS:
Tan sued Lee, Ng and EJL for negligence, breach of fiduciary duty and negligent interference with prospective economic advantage at the time of trial. Tan argued that Lee and Ng negligently handled the sale of his business by allowing the landlord to terminate his lease.

DEFENDANTS' CONTENTIONS:
A real estate broker testified for the defense that real estate agents and brokers have no duty to explain the legal ramifications of commercial leases to tenants. The defendants contended that Tan knew of the restrictive lease provision before he decided to sell the business.

Settlement Discussions

The plaintiffs demanded $1.3 million. The defendant offered $10,000, indicated $15,000.

Damages

Tan claimed that he lost the sale of his business worth $1.2 million. He also claimed attorney's fees of $103,257.54. The defendants contended that the fair market value of the lease, and not the buyer's price in offer was the appropriate measure of damages. They also claimed the lease had no value.

Result

The jury found Tan 60 percent at fault and Lee 40 percent at fault. The jury found that EJL's negligence was not a substantial factor in causing plaintiffs' harm. And, that Wendy Ng acted outside the scope of its authority with EJL. EJL was found not liable. The jury awarded $1,303,258 to Tan (gross); $521,303 (net).

Deliberation

1.5 days

Poll

10-2

Length

five days