Facts

On March 17, 2004, plaintiffs Marion and Richard Janks formed a contract to purchase the subject single family residence located in Westlake Village from defendant Marilyn Draper-Wise. As part of the contract, defendant (who is a mortgage broker) required that the mortgage "go through" her brokerage, known as The Mortgage Banque. Shortly thereafter, defendant changed her mind, instructed her loan contact at a third-party lender to "cease all activity," and refused to take any further steps to cause or allow the loan to be obtained or escrow to close. Defendant then presented a series of purported loan proposals to plaintiffs that were not based on the terms specified in the contract. On the last day before expiration of the loan financing contingency, plaintiffs secured a loan from an outside residential mortgage lender. A copy of that committment was sent to defendant. Thereafter, defendant wrote to escrow and requested cancellation of the sale, allegedly on the ground that the loan obtained had not "gone through the Mortgage Banque." Defendant refused to withdraw such request for cancellation or allow escrow to close, despite a written request by plaintiffs and by counsel on their behalf. Plaintiffs nevertheless signed the loan documents and obtained an insurance committment pursuant to the loan committment. Shortly before the scheduled escrow closing date of April 9, defendant notified the escrow agent that she was not going to sell the property to plaintiffs in this escrow. During the trial, defendant took the contradictory position that no contract had ever been formed and that it had been purportedly breached by plaintiffs. The court held that defendant judicially admitted the existence of the contract in her pleadings and in certain of her discovery responses. The court found that plaintiffs were excused from depositing the purchase price in escrow following defendant's purported written cancellation of the escrow and contract. Plaintiffs offered mediation in writing on April , which was not responded to or accepted by defendant. On April 14, 2004 the complaint was filed and a lis pendens was recorded against the property. Following entry of judgment on August 2, defendant filed Chapter 7 bankruptcy proceedings, which prevented the hearing from going forward on plaintiffs' motion for attorney fees. On January 2, 2007, the bankruptcy stay was lifted by Bankruptcy Judge Geraldine Mund. Thereafter, the motion was heard and the court issued an order on February 23, granting the motion and awarding attorney fees to plaintiffs in the amount of $459,768.75. During the litigation, the court twice awarded monetary sanctions to plaintiffs due to defendant's refusal to provide responses as required.

PLAINTIFFS' CONTENTIONS:
The plaintiffs contended that a contract was formed, that this fact was judicially admitted by defendant, that defendant presented no qualifying loan proposals that met the terms of the contract, that defendant did not disclose that she was only attempting to obtain a loan for plaintiffs from her existing mortgage holder so that she could avoid a prepayment penalty and also try to get an undisclosed loan commission, that defendant breached the contract by giving written cancellation instructions to escrow and refusing to withdraw the same (effectively preventing escrow from closing over her objection), and that defendant failed to discharge her duty as a fiduciary loan broker and actively interfered with plaintiffs' performance.

DEFENDANT'S CONTENTIONS:
The defendant contended that a contract was not formed, that Richard Janks allegedly did not sign the contract, that the contract was allegedly breached by plaintiffs, and that plaintiffs were purportedly not ready, willing and able to perform in a timely manner.

Result

The court ordered specific performance of the purchase/sale contract involving the subject improved single-family residential real property. It also awarded attorney fees in the amount of $459,768 and costs in the amount of $12,877. The court awarded nominal damages for breach of fiduciary duty by defendant in her capacity as mortgage broker for plaintiffs.

Other Information

The plaintiffs and defendant engaged twice in mediation and once in a settlement conference. At the settlement conference, plaintiffs demanded $250,000 to release any claim to the property. The defendant made no specific offer, but later offered $100,000 to plaintiffs for a full release.