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Real Property
Fraud
Negligent Misrepresentation

Robert Allen, M.D. and Joann Allen v. Pete Rowlett and Lee Rowlett

Published: Mar. 26, 1998 | Result Date: Oct. 12, 1997 |

Case number: 392481 Verdict –  $0

Judge

Robert D. Foiles

Court

San Mateo Superior


Attorneys

Plaintiff

Joseph Scanlan


Defendant

J. Byron Fleck


Facts

In January 1994, plaintiffs Dr. Robert Allen, a neuropsychologist, and his wife, Joann Allen, purchased defendants Pete and Lee Rowlett's 43-year-old San Carlos home. At the time of purchase, the plaintiffs purchased the home "as is." In February 1995, the plaintiffs claim to have discovered that Pete Rowlett had performed certain work on the home for which he did not secure permits, and that there had been landslides about the property which were not disclosed to them at the time of sale. The plaintiffs brought this action against the defendants based on fraud, negligent misrepresentation, intentional infliction of emotional distress and negligent construction theories of recovery. Defendants Rowlett cross-complained against their agent and broker for buyers for indemnity and apportionment of fault.

Settlement Discussions

The plaintiffs did not make a settlement demand. The defendants made a C.C.P. º998 offer of compromise for $60,000 ($30,000 each plaintiff).

Damages

The plaintiffs claimed $1.34 million in damages and asked for $1 million in punitive damages.

Injuries

Plaintiff Robert Allen claimed to suffer a seizure and clinical depression as a result of the defendants' conduct. Plaintiffs also sought damages for diminution in value attributed to the alleged defects and undisclosed conditions.

Other Information

The verdict was reached approximately two years and four months after the case was filed. The plaintiffs filed a Chapter 7 bankruptcy on the eve of a post-trial hearing for the defendants' attorney fees and costs motion that was brought pursuant to the attorney fee provisions in the sales agreement. Under the same contract provision, the court awarded attorney fees and costs (approximately $55,000 each) to the brokers against the defendants, even though the jury made no findings in their special verdict form on the defendants' cross-complaint against the brokers. The defendants are pursuing a nondischargability claim against the plaintiffs in Bankruptcy Court. The defendants have filed a notice of appeal on the court's award of attorney fees to the cross- defendants. SETTLEMENT CONFERENCE: Numerous settlement conferences were held which did not resolve the matter.

Deliberation

3½ hours

Poll

12-0

Length

10-14 days (varied reports)


#126582

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