AFCO Development Co. Inc., Siena Villas LLC v. Kevin Bassinson, John McGee, Janice Shasha in her official capacity as Executor of the Estate of Jennifer Popkin, Keller Williams Realty, Susan Blau, Ben DiBenedetto
Published: Feb. 9, 2008 | Result Date: Oct. 19, 2007 | Filing Date: Jan. 1, 1900 |Case number: BC356808 Settlement – $800,000
Court
L.A. Superior Central
Attorneys
Plaintiff
Howard S Fredman
(Fredman Lieberman & Pearl LLP)
Defendant
Robert Peter Weiss
(Narvid Scott LLP)
Experts
Plaintiff
Daniel T. Gryczman
(technical)
David E. Moss
(technical)
David Gribin
(technical)
A. Scott Herd
(technical)
Facts
The plaintiffs in this lawsuit are two real estate development companies, AFCO Development Co. and Siena Villas. Their managers are Frank Afari and Zvi Shapiro. In August and September 2005, the plaintiffs purchased two adjacent pieces of property: 4437 and 4445 Vantage in Studio City. The sellers of the properties were defendants Kevin Bassinson and John McGee, and Janice Shasha, who were the Executrix for the Estate of Jennifer Popkin. The same real estate brokers, defendants Susan Blau and Ben Di Benedetto, and their brokerage company, defendant Keller Williams Realty, represented both the buyers and the sellers.
The plaintiffs responded to an online listing prepared by the brokers which represented that the properties were zoned R-3; this would allow multiple units to be developed on them. After the purchase was completed, the plaintiffs were informed by the City Planning Department that the properties were actually zoned R-1, which only allows single-family homes. The plaintiffs offered to return the properties to the sellers, but the sellers declined to take back the properties and return the money paid.
Contentions
PLAINTIFFS' CONTENTIONS:
The plaintiffs alleged that the defendant sellers and brokers negligently represented that the properties were zoned R-3, and that the defendant brokers failed to disclose conflicting information in their possession that the properties might be zoned R-1 and did not adequately investigate the zoning. The plaintiffs alleged that they never would have bought the properties if the defendant sellers and brokers had disclosed that there were issues with the zoning.
DEFENDANTS' CONTENTIONS:
The defendant brokers and sellers denied responsibility. The brokers alleged that they made a reasonable investigation of the zoning, that the erroneous R-3 representation resulted because the City Building and Safety Department provided wrong information, that they appropriately disclosed all pertinent information, and that it was the buyer's responsibility to investigate the properties' zoning.
The defendant sellers alleged that they also made a reasonable investigation of the zoning, that they, also were misinformed by the City Building and Safety Department, that they disclosed that there was inconsistent zoning information to the brokers, and that any disclosure issue is the brokers' responsibility.
Settlement Discussions
The case underwent three mediations. The plaintiffs demanded $800,000 to settle all claims, which was rejected. The sellers offered $150,000, later reduced; and the brokers offered $150,000.
Damages
Approximately $1,350,000 plus attorney fees.
Result
The case settled for $800,000.
Other Information
Unsuccessful mediation was held before Jeff Kichaven of JAMS three weeks before trial.
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