Facts

Alan Strachan and Michael Smith planned a large residential and commercial development project called Courtside Village in Santa Rosa. The property owners, Joseph and Helen Bonfigli, sold their undeveloped rural property to Courtside Village LLC and granted it an option to purchase their remaining property. The Bonfiglis also granted Courtside a power of attorney allowing Courtside to obtain development approvals, and to obtain financing using the Bonfiglis' property as security.

After the option expired and the power of attorney terminated, defendants Smith and Strachan allegedly signed the Bonfiglis' names to grant deeds, combining requests to effect the lot line adjustment, which reduced the size of the Bonfiglis' property by 60 percent. Courtside subsequently filed for bankruptcy.

The elderly couple sued Strachan and Smith individually for compensatory and punitive damages for intentional misrepresentation, concealment, false promise, breach of fiduciary duty, trespass, and financial elder abuse.

Settlement Discussions

The lowest demand by plaintiffs was $2,650,000. Defendants made no offer.

Result

Verdict was rendered in favor of the plaintiffs. Smith and Strachan were held liable for $300,000 each for financial elder abuse. Another $48,000 was awarded by the jury for punitive damages against Strachan. Strachan was held liable for $535,000 in damages for fraud, which the court found to include the $300,000 award for financial elder abuse.