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Real Property
Negligence and Fraud
Failure to Disclose

Paul C. Carlson and Kerry A. Carlson v. Esther E. Riney and The Prudential California Realty, et al.

Published: May 20, 1995 | Result Date: Mar. 30, 1995 | Filing Date: Jan. 1, 1900 |

Case number: N59761 –  $0

Judge

Henry Wien

Court

San Diego Superior


Attorneys

Plaintiff

Stephen V. McCue


Defendant

Jane A. Rheinheimer
(Rheinheimer Smigliani APC)


Experts

Plaintiff

Paul Bogseth
(technical)

William Moser
(technical)

Tom Guy Jr.
(technical)

Thomas G. Benke
(technical)

Defendant

Douglas Jensen
(technical)

Edward D. Martinet II
(technical)

Eugene F. Cook
(technical)

William Simmons
(technical)

Facts

In August of 1992, Plaintiffs Paul and Kerry Carlson purchased a 1,600 square foot, single family residence in Carlsbad, California, for $218,000. It had been constructed in 1978 as part of the "Santa Fe Glens" development. Defendants Esther Riney and The Prudential California Realty were the real estate agent and broker, respectively, for the sellers of the property. After close of escrow, Plaintiffs discovered a pervasive site drainage problem which they claimed resulted in severe flooding of the yard, loss of use and enjoyment of the property, and moisture intrusion into the residence. Plaintiffs settled with Defendant sellers several weeks before trial for an assignment of rescission rights, and proceeded to trial on negligent misrepresentation and fraud theories against the sellers' agent and broker.

Settlement Discussions

Defendants contend that they made a 998 offer in the amount of $10,000 7 months prior to trial and that Plaintiffs' last demand prior to trial was $110,000.

Damages

Plaintiffs estimated the cost of repair at $50,000 and the fair market value of the property at $0 to negative. Defendants estimated the cost of repair at $7,400 and alleged that the stigma loss was 3 percent to 6 percent of the undamaged value of the home. At the liability phase of trial, Plaintiffs asked the jury to award the full purchase price of the property ($218,000). Defendants asked the jury to award nothing.

Other Information

This case was bifurcated as to Plaintiffs' punitive damages claim.

Deliberation

2 hours

Poll

12-0

Length

9 days


#78497

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