Facts

Plaintiff Jack Azad offered to purchase defendants' residential property in Beverly Hills for $3.8 million all-cash through a 10-day escrow. Prior to listing, the City of Beverly Hills had issued a Notice of Substandard Building against the property, which made it a misdemeanor to enter the property. The property was marketed as a tear-down being sold as-is for its land value.

Plaintiff filed suit, seeking specific performance.

Defendants counterclaimed that it was plaintiff who breached the parties' contract by failing to deposit $3.8 million in cash into escrow within 10 days.

PLAINTIFF'S CONTENTIONS: Plaintiff wanted to purchase the property and argued that defendants breached the parties' contract by preventing him from properly investigating the property.

DEFENDANTS' CONTENTIONS: Plaintiff's offer was accepted, but plaintiff failed to deposit $3.8 million in cash into escrow and escrow did not timely close. Defendants canceled the parties' contract.

Defendants argued that they did not breach the parties' contract. When plaintiff asked to investigate the property, the property was made available to him. He viewed the interior and exterior of the property with his own eyes and never complained that the investigation was inadequate.

Result

The arbitrator issued an award in favor of defendants. The arbitrator concluded that defendants did not breach the parties' contract and plaintiff did. The arbitrator awarded $114,000 in liquidated damages to counter-plaintiffs, plus $419,065 in attorney fees and costs. The court, in confirming the arbitrator's award, awarded another $31,764 in prejudgment interest and $5,460 in post-arbitration attorney fees.

Length

four-day arbitration