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Confidential

Dec. 28, 1995

Torts
Real Estate Sale
Fraudulent Misrepresentation

Confidential

Published: Dec. 28, 1995 | Result Date: Nov. 14, 1995 |

Case number: 670822 –  $0

Judge

Arthur W. Jones

Court

San Diego Superior


Attorneys

Plaintiff

Matthew L. Kinley

Joseph A. Lumsdaine


Defendant

Jenette S. Chaban

William A. Smelko
(Procopio, Cary, Hargreaves & Savitch, LLP)

Mary Kathryn Kelley

William Sullivan

Richard R. Leuthold


Facts

In 1991, the plaintiff purchased a single-family residence on 5.45 coastal bluff acres (consisting of two lots in La Jolla) for $8,300,000 from the defendant sellers. The defendant sellers had resided at the residence for over twenty years. They listed the property for sale with the defendants real estate broker and agent. The defendants carried a note on the property which remained unpaid at the time of trial. Enforcement of the note was enjoined pending the outcome of the proceedings. The plaintiff wanted to tear down the existing home and replace it with a 28,000 sq. ft. home and 30-car subterranean garage. After fifteen months into the permitting process, the plaintiff was informed by the City Planning Department that the general area had archaeological significance because of the presence of cultural resources. During the permitting procedure, the City Planning Department required the plaintiff to have an archaeological survey of the property performed. The survey revealed several 8,000-year-old Native American skeletons. The plaintiff was required to remove and rebury the remains before proceeding with construction. The City Planning Department also required the plaintiff to position the new residence further from the edge of the cliffs overlooking the beach.

Settlement Discussions

Were deemed to be confidential.

Damages

$1,400,000 plus $800,000 (representing decrease in fair market at time of sale, $7,500,000, and after the discovery of the property's archaeological significance, $6,100,000).

Other Information

The verdict was reached approximately 2 years after the case was filed. The settlement was reached shortly thereafter.

Deliberation

4-5 hours

Poll

11-1

Length

11 days


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