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Contracts
Breach of Contract
Fraud

David Garcia v. Hal Brown, Pete Paniagua Termite, Oscar Gongora, Patti Sears (in pro per)

Published: Nov. 11, 2003 | Result Date: Dec. 6, 2002 | Filing Date: Jan. 1, 1900 |

Case number: GIC750910 Bench Decision –  $11,600

Judge

Sheridan E. Reed

Court

San Diego Superior


Attorneys

Plaintiff

John Joseph Gulino
(Gulino Law Office)


Defendant

Robert A. Alexander Jr.


Experts

Plaintiff

Ray Ruiz
(technical)

Larry Teves
(technical)

Gus Dimos
(technical)

Facts

The purchasers of two properties sued the seller and the real estate agent for breach of contract and fraud. The plaintiffs were David Garcia and Valerie Wallace, husband and wife. The defendants were Patti Sears, a real estate agent, Hal Brown, a retired former owner of private security companies and seller, Pete Paniagua Termite, the company that performed termite inspections, prepared pest infestation reports on both properties, and performed some remediation repairs, and Oscar Gongora, a contractor that performed some remediation repairs on Property "A." The plaintiffs intended to convert Property A back into a residence for themselves, Plaintiff Wallace intended to use Property "B" for commercial offices. Defendant Sears acted as a dual agent in the transaction, representing both the seller and buyers. The plaintiffs alleged that defendant Brown breached the purchase-sale contract by failing to provide complete termite damage remediation, failing to have repairs done in a workmanlike manner and pursuant to proper permits, failing to level floors, and failing to replace foundations and perform other repairs. The plaintiffs further alleged that defendant Brown committed fraud by failing to disclose known property defects. The plaintiffs claimed that defendant Sears participated in the fraud of the seller and was in breach of her agency fiduciary duty to plaintiffs. Defendant Brown contended that he performed his contractual obligations and denied fraud. Defendant Sears denied breach of fiduciary duty and fraud.

Settlement Discussions

The plaintiff demanded $80,000 from defendant Brown; defendant Brown offered $2,000. Defendant Sears did not make an offer.

Damages

General damages in the amount of $40,000 for Property A and $40,000 at Property B.


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