Abe Oberg v. Coldwell Banker Residential Brokerage, Co., et al.
Published: Dec. 27, 1997 | Result Date: Oct. 31, 1997 | Filing Date: Jan. 1, 1900 |Case number: BC161898 – $1,147,400
Judge
Court
L.A. Superior Central
Attorneys
Plaintiff
Defendant
Experts
Plaintiff
Maurice Abrams
(technical)
Defendant
John Aust
(technical)
Facts
In early May 1996, plaintiff Abe Oberg was in default on the mortgage encumbering his Hollywood Hills rental property. Defendant Coldwell Banker, acting as plaintiff's broker through its sales agents defendants Gretchen Dockweiler and Mary Anne Singer, procured two tenants to rent plaintiff's property under a two-year lease. At the time the agents procured the tenants, they were aware that plaintiff was in default on the mortgage and was depending on them to procure tenants who would provide him with a steady income stream sufficient to service the mortgage and avoid impending foreclosure. Although plaintiff understood the agents to be his agents exclusively, the agents were also representing the prospective tenants, a fact they failed to disclose to plaintiff. The plaintiff alleged that during defendant's investigation of the credit history of the tenants, the defendant agents received credit reports indicating that the tenants were probably professional con artists. The defendant argued that the agents failed to disclose credit information to plaintiff. In late June 1996, one of the prospective tenants delivered to defendant Dockweiler at her office eight cashier's checks made payable to defendant Coldwell Banker, each for $500, as a security deposit. Defendant Dockweiler briefly left the tenant in her office with the lease file and the checks. That night, she discovered that either the tenant had left with the checks or she had lost them. Defendant Dockweiler informed the office manager of the disappearance of the checks. However, the plaintiff alleged that no one at defendant Coldwell informed plaintiff of the development. Rather, defendants Dockweiler and Singer informed plaintiff that they were in receipt of the checks and that they had sent the checks to defendant Coldwell's main office in San Diego for processing. Defendant Dockweiler later sent plaintiff a cashier's check, paid for from her own funds, but purportedly from defendant Coldwell's San Diego office, (disputed by defendant) representing his share of the security deposit. Soon after the disappearance of the cashier's checks, the plaintiff claimed the agents accepted, on plaintiff's behalf, but without his consent, two personal checks from the prospective tenants, representing first and last month rent and both drawn on an Atlanta, Ga. bank account on a third party who was a stranger to the transaction. The plaintiff claimed defendant took no steps to determine if the checks were good. One of the defendant agents wrote in plaintiff's name as a payee without disclosing that fact to plaintiff. The plaintiff further alleged that at the time, the checks were delivered, the agents, without plantiff's consent, had given the tenants keys to the property. In early July 1996, both personal checks were returned by the bank since they had been drawn on a closed account. Both tenants immediately defaulted upon their lease obligations but continued to reside at the subject property rent-free. Unable to service the mortgage, plaintiff finally lost the property through foreclosure in November 1996 after the trustees sales had been repeatedly postponed at the lender's request. The plaintiff sought compensatory and punitive damages against Coldwell Banker and the individual agents for breach of contract, fraudulent breach of fiduciary duty and professional negligence. The defendant tenants defaulted on the complaint.
Settlement Discussions
The plaintiff made no settlement demands. The defendants made a C.C.P. º998 offer of compromise for $10,000.
Other Information
The verdict was reached approximately 11 months after the case was filed. A settlement conference was held on Sept. 17, 1997, before attorney H. Douglas Galt of Long & Levitt, LLP resulting in no settlement offers from defendants. However, the plaintiff demanded $500,000. Defendant reports that post-trial motions and an appeal will be filed.
Deliberation
1+ days (compensatory), 30 minutes (punitives)
Poll
12-0 (all defendants)
Length
eight days
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