Facts

The parents of cross-defendants Carmen Little-Herbert and Anna Simon purchased 565 Page Street, San Francisco ("subject property") in or around 1952. In 2010, cross-defendant Carmen Little-Herbert began managing the subject property as her parents were no longer able to do it themselves. In May 2013, plaintiff Loren Watts' cousin, Carolyn Mitchell, signed a written lease agreement and moved into Unit #2 at the subject property.

On or around Aug. 4, 2017, plaintiff Loren Watts moved into Unit #2 at 565 Page Street, San Francisco. At the time plaintiff moved into Unit #2, plaintiff's cousin, Carolyn Mitchell, was living in the apartment. At first, plaintiff planned to stay with Ms. Mitchell for only a few weeks. However, after a couple of weeks, plaintiff decided he wanted to stay in San Francisco so he continued living with Ms. Mitchell in Unit #2. Ms. Mitchell introduced plaintiffto cross-defendant Carmen Little-Herbert. At no time did cross-defendants Carmen Little-Herbert or Anna Simon tell plaintiff he was not allowed to live in Unit #2 or ask him to leave.

In 2018, Ms. Mitchell started talking about moving out of Unit #2 and moving to Texas. It was understood by plaintiff that he was allowed to continue living in Unit #2 at the subject property after Ms. Mitchell moved out. During one conversation plaintiff had with Ms. Mitchell, Ms. Mitchell told plaintiff to take care of his business by paying the rent and utilities for Unit #2. On or around July 19, 2018, Ms. Mitchell wrote a letter stating she would be vacating the apartment at the end of July 2018 as she was relocating. The letter also memorialized the conversation with plaintiff that he would assume full responsibility for the apartment, including the $1,200 per month rent. Ms. Mitchell moved out of the apartment at the end of July 2018. When Ms. Mitchell moved out of Unit #2, she left behind many personal items, including furniture and household items. It was understood by plaintiff that Ms. Mitchell left those items for him.

Plaintiff paid rent for August 2018, September 2018 and October 2018 to the Alma D. Jones Trust by getting a cashier's check in his name for $1,200 for each month. Cross-defendant Carmen Little-Herbert, as the trustee, accepted all three cashier's checks for rent, signed the back of the checks and deposited the cashier's checks. She then gave plaintiff receipts for the August and September 2018 rent; the September 2018 receipt referred to Plaintiff by name.

In or around August 2018, cross-defendant Carmen Little-Herbert and Anna Simon put the subject property for sale. To assist with the sale in 2018, real estate brokers and agents, cross-defendants Helm Real Estate, Marcus Miller and Ryan Bakalarski, were hired. Cross-defendants Marcus Miller and Ryan Bakalarski met plaintiff during tours of Unit #2 at the subject property.

In or around September 2018, defendants Ari Shpanya and 565 Page LLC were first given information about the subject property by their real estate broker, cross-defendant Alex Varum. On Oct. 1, 2018, Blok LLC, which defendant Ari Shpanya is and was the managing member of, made an offer of $3,825,000 to purchase the subject property. All contingencies on the purchase of the subject property were removed. On Oct. 2, 2018, cross-defendants Carmen Little-Herbert and Anna Simon accepted Blok LLC's offer to purchase the subject property. Escrow closed at the end of October 2018.

Plaintiff received a notice on his door in or around November 2018 stating he was to pay rent to 565 Page LLC and put the rent check in Unit #1's mailbox. Plaintiff paid rent in November 2018 and December 2018 with cashier's checks made out to 565 Page LLC and placed the checks in Unit #1's mailbox; the cashier's checks were in plaintiff's name. After delivering the cashier's checks to Unit #1's mailbox, defendants informed Ms. Mitchell that the rent checks from Plaintiff would not be accepted because they were in the name of a third party. The cashier's checks were returned to plaintiff. Plaintiff got cashier's checks in Ms. Mitchell's name which he then placed in Unit #1's mailbox. These checks were never returned to plaintiff.

On or around Dec. 31, 2018, plaintiff was gone, defendants had their agent, Hernando "Nando" Gonzalez, post a notice on the door of Unit #2; the notice stated there would be entry into Unit #2 on Jan. 1, 2019 to show the unit to "prospective or actual purchasers, mortgagees, tenants, workers, or contractors." Defendants then ordered Mr. Gonzalez to enter Unit #2 on January 1, 2019 to see if the unit was still occupied; Mr. Gonzalez took photographs showing plaintiff's belongings throughout the apartment which were sent to defendant Ari Shpanya. Defendants then ordered Mr. Gonzalez to change the locks on Unit #2 and the entry to the subject property.

Plaintiff returned on Jan. 2, 2019 to find the key to Unit #2 no longer worked. Plaintiff was unable to access his personal property as it was in the apartment with the locks changed. Plaintiff was never able to pick up his personal belongings and was never allowed to go back inside his home at the subject property. Due to defendants' actions, plaintiff slept on the streets until he was able to get a bed at the San Francisco Navigation Center in March 2019 where he stayed until May 2020 when he was moved to a hotel due to COVID-19 outbreaks in the shelter. In November 2020, Plaintiff was finally able to get an apartment.

Insurer

Specialty Insurance Advantage, Inc. (defendants 565 Page LLC and Ari Shpanya), Starr Surplus Lines Insurance Company (cross-defendants Helm Real Estate, Ryan Bakalarski and Marcus Miller), Accelerant Specialty Insurance Company (cross-defendant Alex Varum)

Result

The case settled for $4,250,000.