Facts

Plaintiff Pamela Zahler-Marino contacted defendant Zane Widdes, a real estate agent who had previously sold her house, and inquired if Widdes knew of any investment devise that she could use to maximize her return. Zahler-Marino and her brother, plaintiff Ira Zahler, gave Widdes several hundred thousand dollars to invest. Plaintiffs made a return on their initial investments with Widdes, but ultimately lost about $550,000 between the two of them.

Plaintiffs brought suit for breach of contract, money had and received, and misrepresentation (intentional and negligent) against Widdes and Rodeo Realty, the broker whose office Widdes worked out of.

PLAINTIFFS' CONTENTIONS:
The plaintiffs alleged that Widdes told them that their money was to be used by Widdes to fund real estate transactions for buyers represented by Widdes. The plaintiffs further alleged that Widdes stated that he would make them money quickly, safely and without risk. The plaintiffs allege they gave multiple checks to Widdes in excess of $800,000 and that Widdes failed to repay the money they lent.

DEFENDANTS' CONTENTIONS:
Defendant Widdes admitted owing plaintiffs approximately $550,000, but denied he intentionally or negligently misrepresented any material facts to plaintiffs in order to induce them to invest.

Result

On April 18, 2011, the Honorable Mark V. Mooney Jr. presiding, the Court granted summary judgment in favor of Rodeo Realty. Rodeo Realty's evidence demonstrated that Widdes was never an employee of Rodeo Realty, but instead acted as an independent contractor. Moreover, his position as agent did not authorize him to broker loans. The Court also found that Rodeo Realty was not liable to plaintiffs for Widdes' conduct as an alleged ostensible agent, as a finding of ostensible authority must be based upon the statements or conduct of the principal (Rodeo Realty), not the statements of the alleged agent (Widdes) Rodeo Realty never communicated with plaintiffs or authorized Widdes to invest money or otherwise arrange loans. Rodeo Realty was not vicariously liable because Widdes admitted that he deposited plaintiffs' money in his own bank account for his own personal benefit and never used the funds for a real estate transaction. Defendant Rodeo Realty recovered from plaintiff Pamela Zahler-Marino costs in the sum of $3,340.85 with 10% interest per annum. On August 15, 2011, a jury deliberated and thereafter returned its verdict as follows: plaintiff Pamela Zahler-Marino recover from defendant Widdes the sum of $455,660.00 and that plaintiff Ira Zahler recover from defendant Widdes the sum of $92,400.00 with 10% interest per annum.

Other Information

The jury found 12-0 that there was no misrepresentation, intentional nor negligent, made by defendant Widdes and that plaintiffs' reliance upon any representations made by Widdes was not reasonable nor justified. The jury's award to plaintiffs was the amount Widdes admitted he owed. Plaintiffs motion for a new trial was denied and they have not appealed.