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CONFIDENTIAL

Mar. 2, 1996

Breach of Fiduciary Duty
Residential Purchase
Property Rights

Confidential

Settlement –  $181,712

Court

Ventura Superior


Attorneys

Plaintiff

Richard M. Norman


Defendant

Raimund Freihube


Experts

Plaintiff

Richard S. Hambleton Jr.
(technical)

Facts

The plaintiff uncle and defendants niece and nephews co-owned acreage in Moorpark. The parties entered into a lease with a tenant which expired on October 31, 1989. The tenant was in default. The plaintiff alleged that, with the knowledge of defendants, he commenced and successfully prosecuted an unlawful detainer action against the tenant. Because of disagreements with the plaintiff (and over the plaintiff's objections), the defendants made a new five-year lease with the same tenant at below market rent, paying the prorata share to the plaintiff. The plaintiff also alleged that at the same time, the defendants gave the tenant the option to purchase the defendants' share of the property, which option was later exercised. The plaintiff further alleged that the tenant exclusively occupied the property, committing numerous zoning violations, resulting in criminal prosecution against all parties, including the plaintiff. The plaintiff brought this action against the defendants based on ouster, breach of fiduciary duties and contribution theories of recovery.

Settlement Discussions

The plaintiff made no settlement demand. The defendants offered nothing and demanded a dismissal of the complaint.

Damages

$31,712 in lost rent and expenses, $75,000 emotional distress and $75,000 in punitive damages claimed.

Injuries

The plaintiff alleged that he suffered emotional distress as a result of the incident.

Other Information

The arbitration award was reached approximately four years and nine months after the case filed. The arbitration was held before Hon. Jerome H. Bereuson, retired, of the Superior Court.

Length

4+ days


#78777

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