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Contracts
Breach of Fiduciary Duty
Fraud and Misrepresentation

Neng-Guin Chen aka Jenny Chen v. Mazlina Lai

Published: Mar. 28, 2009 | Result Date: Jan. 27, 2009 | Filing Date: Jan. 1, 1900 |

Case number: 200700080373CUNC Verdict –  $58,182

Court

San Diego Superior


Attorneys

Plaintiff

Patrick J. Stark


Defendant

Melvin D. Rich


Experts

Defendant

Roger L. Holtsclaw
(technical)

Facts

Defendants Mazlina Lai and Sothy Lai entered into written contracts to purchase (Purchase Contracts) three condominium units in Las Vegas, Nevada, which they intended to sell before construction completed in order to make a quick profit. After the Las Vegas market started to soften, the Lais engaged plaintiff Neng-Guin Chen, a licensed real estate broker in California and Nevada, to extricate them from the signed Purchase Contracts. Chen and the Lais entered into a written agreement (Agreement) in November 2006 (which was later amended into three separate agreements) to pay Chen for her help in canceling the Purchase Contracts. While Chen was attempting to get the Purchase Contracts canceled, she was in constant contact with the Lais, including over 100 emails. Chen engaged a Las Vegas attorney to assist in the cancellation and eventually the Purchase Contracts were canceled. According to the Agreement, Chen was to be paid by wire as soon as confirmation was received of the Purchase Contracts' cancellation but when confirmation was received, the Lais complained about Chen's fee. Chen subsequently received a letter from the Lais' attorney stating that Chen would not be paid due to her improper execution of various items.

Chen filed suit for breach of contract, misrepresentation, and fraud.

Contentions

PLAINTIFF'S CONTENTIONS:
Chen contended that she fully performed on the written contract between herself and the Lais. Chen argued that the Lais had no intention of ever paying her the full compensation owed on the contract and thereby, obtained her performance through fraud.

DEFENDANTS' CONTENTIONS:
The Lais alleged the existence of a long-standing friendship with Chen. Defendants argued that because of that alleged friendship, they were induced to sign the agreement. The Lais argued that Chen's deceit caused them to believe that she was their only option.

Damages

Chen sought damages in the amount of $51,877 plus 10% interest.

Result

The jury found for Chen in the amount of $58,182.

Deliberation

3/4 day

Poll

12-0

Length

eight days


#81943

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