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Torts
Breach of Fiduciary Duty
Conspiracy

Cheryl Wroten v. Alice Winn, Stevan Winn

Published: Oct. 27, 2007 | Result Date: Jun. 28, 2007 | Filing Date: Jan. 1, 1900 |

Case number: BC323665 Verdict –  Defense

Court

L.A. Superior Central


Attorneys

Plaintiff

Fred D. Dorton Jr.


Defendant

Sherwin C. Edelberg

Claire N. Espina
(Espina Lawyers APLC)


Facts

According to defense counsel, Cheryl Wroten lived with Stevan Winn at a Los Angeles residence before he was convicted of a second felony. (Plaintiff's counsel disputes that Cheryl Wroten and Stevan Winn lived together at one of the properties). Defense counsel claims that before Stevan was imprisoned, he transferred substantial funds to Wroten. Wroten used these funds to acquire realty, all of which were heavily mortgaged.
Plaintiff's counsel claims that Cheryl used her own funds to acquire the properties through mortgages and estate funds she received after her birth mother's death. Stevan Winn contributed funds to the construction of houses on one of the properties.

According to defense counsel, Wroten could not meet the mortgage payments and sold the properties to Stevan's mother, Alice Winn. The alleged oral agreement between Wroten and Alice was that the properties would be transferred back to Wroten upon demand. Alice paid the mortgages and also transferred $130,000 to Wroten who claimed all of the above was only a device to avoid taxes.

According to plaintiff's counsel, Alice Winn received $130,000 from the sale of the properties, Cheryl Wroten received $120,000, but the money received by Cheryl Wroten was used toward Stevan Winn and Alice Winn's criminal attorneys fees and to finish the construction of one of the properties. Cheryl Wroten lost all of her properties, used the $120,000 she received from the sale of the properties to pay the defendants debts, and still had a tax issue with the IRS from the $130,000 received by Alice Winn.

Wroten sued Alice and Stevan for fraud and misrepresentations arising from the dispute over ownership of the

Contentions

PLAINTIFF'S CONTENTIONS:
The plaintiff contended defendants conspired to defraud her of property by promising to reconvey the property after Winn evaded creditors by transferring the property to his mother.

DEFENDANTS' CONTENTIONS:
The defendants denied the allegations.

Damages

$1.5 million real property value.

Result

Defense verdict.


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