Facts

Defendant Albert Goldberg was a dual agent/broker in plaintiffs' purchase of a ranch property in Fillmore, which they intended to use for an organic hydroponic farming operation. Goldberg was aware that the water well, which historically supplied water to the property and which was located on a separate parcel, had been cut off when the ownership to the two parcels was separated in 2001. Goldberg represented the then-owner of the property and did not disclose these facts to plaintiffs.

After the purchase, plaintiffs discovered that the remaining water well on the property did not function and they were not able to conduct the intended business.

PLAINTIFFS' CONTENTIONS:
Plaintiffs contended that Goldberg was negligent, committed fraud, and breached his fiduciary duties by not disclosing the true condition of the water supply to the property.

DEFENDANT'S CONTENTIONS:
Goldberg claimed that he made adequate disclosures sufficient to put plaintiffs on notice that the well located on the property was not suitable for the property.

Settlement Discussions

At trial, plaintiffs demanded $150,000, raised to $400,000. Goldberg offered $105,000, lowered to $60,000.

Result

The jury awarded $300,000 in diminution in value, $21,000 for costs of repair, and $1,525,000 in lost profits.

Deliberation

two days

Poll

12-0 (liability), 9-3 (damages)

Length

four weeks