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Breach of Fiduciary Duty
Breach of Contract
Intentional Infliction of Emotional Distress

Morris J. "Marty" Mandell and Marilyn Mandell v. Plaza Del Sol Homeowners Association; James Kempner; Owen McGuiness; Robert Pedersen, et al.

Published: Aug. 3, 1996 | Result Date: Jul. 3, 1996 | Filing Date: Jan. 1, 1900 |

Case number: 739513 –  $0

Judge

James J. Alfano

Court

Orange Superior


Attorneys

Plaintiff

Ralph R. Loyd


Facts

Plaza Del Sol is a planned development (governed by CCR's) of single family homes in Costa Mesa, Calif. (about one mile away from South Coast Plaza shopping center). Plaintiffs Morris and Marilyn Mandell lived next-door to the defendant neighbors, George and Sylvia Youssef. They were good friends until the fall of 1990. In the fall of 1990, the plaintiffs decided to remodel their home. They discovered that the boundary fence between their house and the Youssef home (erected by the original developer) was five feet too close at the Youssef house. When the plaintiffs told the defendant Youssefs of this fact, the Youssefs filed suit against the Mandells and defendant/cross-defendant Plaza Del Sol Homeowners Association. On April 30, 1992, the lawsuit brought by the Youssefs (assigned to Judge Thomas N. Thrasher) was apparently settled. The insurance carriers for the Mandells and Plaza Del Sol Homeowners' Association each agreed to pay $2,500 into a "settlement fund" to be held by the Association and used to pay for removal of the wooden boundary fence and the erection of a new slumpstone boundary wall two feet four inches closer to the Mandell house. The Youssefs were to record an easement in favor of the Mandells within fifteen days and the Mandells were to select the contractor (subject to the approval of the Youssefs). Several proposed easements offered by the Youssefs were not acceptable and the actual easement was not recorded until April 1993. Once the easement was recorded, the Mandell's plans and bids were submitted for approval by the association and the Youssefs. The plans included not only a new slumpstone boundary wall but also a new front slumpstone wall and wrought iron gate on the Mandell property. The homeowners' association eventually approved the plans, but informed the Mandells that the settlement fund would be used only to pay for the new boundary wall and that the Mandells would have to pay for the new front wall and wrought iron gate themselves. The Youssefs refused to approve any contractor proposed by the Mandells if the work was going to include a new front wall and wrought iron gate. The Mandells insisted the new front wall and gate were part of the original settlement. The homeowners' association attempted to mediate the dispute, without success. Over Labor Day weekend in September 1994 (more than two years after the original settlement was reached), the Youssefs had the wooden boundary fence torn down; and a new slumpstone wall erected, two and one-half feet closer to the Mandell house. On Dec. 6, 1994, the Mandells filed suit against the defendants, the Youssefs, the homeowners' association and James Kempner, Owen McGuiness and Robert Pedersen (Plaza Del Sol homeowners' serving as unpaid directors of the homeowners' association). The Mandells alleged breach of fiduciary duty against the homeowners' association and its directors, breach of contract (the original settlement agreement) against the homeowners' association and the Youssefs, breach of the implied covenant of good faith and fair dealing (arising out of the original settlement agreement) against the homeowners' association and the Youssefs, trespass (against the Youssefs), intentional infliction of emotional distress (against the Youssefs) Mandells also sought an injunction against the homeowners' association and the Youssefs. The Youssefs filed a cross-complaint against the homeowners' association, seeking payment of the amount they expended to remove the wooden boundary fence and to install the new slumpstone boundary wall. The Youssefs dismissed the cross-complaint for a waiver of costs just before jury selection (with Judge Alfano retaining jurisdiction over the $5,000 "settlement fund" by stipulation of all parties).

Settlement Discussions

The plaintiff Mandells made no firm demands as to the homeowners' association or its directors. The defendant homeowners' association offered to waive costs and attorneys' fees if dismissals were provided before jury selection commenced. The defendant Youssefs accepted the waiver of costs and attorney's fees from the homeowners' association, and dismissed their cross-complaint just prior to the commencement of jury selection.

Damages

The plaintiffs claimed $__________ in damages.

Injuries

The plaintiffs alleged that they suffered emotional distress as a result of the defendants' conduct.

Other Information

The judgment was entered approximately one year and eight months after the case was filed. The trial began as a jury trial. Following opening statement by counsel for the Mandells, the homeowners' association and its directors made motions for nonsuit which were granted as to all causes of action against them. The Youssefs also made a motion for nonsuit regarding the breach of implied convenant of good faith claim, which was also granted. With the homeowners' association and the directors dismissed, the Youssefs and Mandells both waived jury. In his tentative decision issued May 3, 1996 (on which judgment was entered July 3, 1996) Judge Alfano found in favor of the Youssefs and against the Mandells on all causes of action; awarded Youssefs $1,950.15 from the "settlement fund" to reimburse the cost of removal of the wooden fence, and erection of the slumpstone wall in September 1994; and divided the balance of the "settlement fund" between the Youssefs and Mandells ($1,524.93 each). The Youssefs have sought some $27,000 in attorney's fees; and $1,600 in costs from the Mandells. The homeowners' association has sought more than $50,000 in attorneys' fees and approximately $2,900 in costs against the Mandells.

Length

2 days


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