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Real Property
Broker Negligence
Single Family Dwelling

Charles E. Ash and Sally Brennan Ash v. Jon Douglas Company

Published: Sep. 24, 1994 | Result Date: May 27, 1994 | Filing Date: Jan. 1, 1900 |

Case number: WEC143072 –  $1,133,000

Judge

David D. Perez

Court

L.A. Superior Central West


Attorneys

Plaintiff

Allan E. Ceran
(Burke Williams & Sorensen LLP)

Kristin A. Regan


Defendant

J. Michael Crowe

Charles Brackins


Experts

Plaintiff

Norman C. Hulberg
(technical)

John J. Bihary Jr.
(technical)

Jerold M. Lamensdorf
(technical)

Defendant

Richard M. Rosenthal
(technical)

Facts

In February of 1989, Plaintiffs Charles E. Ash and Sally Brennan-Ash purchased the subject newly constructed single family residence and allowed the close of escrow. The purchase price was $2,330,000. Plaintiffs claimed they then discovered that the slab foundation was defective and that there were also other defects in the new house: cupping of wood flooring; cracks in the ceilings and walls; disputed property lines; et cetera. Prior to this trial, Plaintiffs settled with the seller/developer and subcontractors in the guaranteed amount of $600,000 ($450,000 additional money was possible based on a Mary Carter Agreement; subsequently $365,000 of the settlement was designated as costs and attorneys' fees); with the geological engineering Defendant for $20,000; and with the subdivision developer Defendant for $125,000. Plaintiffs proceeded to trial against the Defendant real estate broker Jon Douglas Company and two of its agents.

Settlement Discussions

Plaintiffs contend that they demanded $600,000 and Defendants offered $50,000. Defendants contend that Plaintiffs demanded $1,200,000.

Damages

Plaintiffs' estimate of the difference between what they paid for the property and what it was worth was $1,400,000.

Injuries

Emotional distress.

Other Information

Prejudgment interest of $411,246 was added to the verdict; and $359,987 in prior settlements was subtracted; for a net judgment of $1,183,349 plus costs.

Deliberation

9 days

Poll

10-2 on all but one question, 9-3

Length

4 weeks


#78127

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