Facts

Plaintiff Kristie Holmes owned two adjacent properties at 8150 and 8152 Kirkwood Drive in the Hollywood Hills area of Los Angeles. On Jan. 3, 2007, a fire substantially damaged 8150 and modestly damaged 8152. On that day, Holmes was in the hospital recovering from the birth of her child when defendants G.W. Burke & Associates phoned her. Holmes entered into an overage-only public adjuster contract with the defendants in which they would receive a 15 percent fee for any overage payments obtained by defendants beyond a $36,000 estimate for 8150. Holmes made but then rescinded a contract regarding 8152. Her insurance company adjusted the damage at 8150 at $338,709 and at 8152 at $36,000. Holmes lived in Tennessee. Holmes sued the defendants for breach of contract, fraud, breach of fiduciary duty, and constructive fraud.

PLAINTIFF'S CONTENTIONS:
Holmes contended that the defendants attempted to induce her to enter into a contract for the fire loss by taking advantage of her debilitated condition after the birth of her child. Further, she alleged that the defendants took no action that increased the payment on 8150. However, the defendants took possession of $294,709 and withheld from Holmes $44,100 of the payment. The defendants also wrongfully commingled payments on the two properties.

Result

The court returned a verdict for Holmes. On her breach of contact, breach of fiduciary duty, and fraud claims, she was awarded $35,606. She was also awarded an $85,000 punitive damage award.

Poll

12-0