G. Karlin Michelson, M.D. v. BDM Financial; Daniel Aranda; Gene Deshler; Calwide Trust Deed Services, Inc.; Charles Davis; Ernie Calves, et al.
Published: Jan. 17, 1998 | Result Date: Dec. 12, 1997 | Filing Date: Jan. 1, 1900 |Case number: SC024995 Verdict – $293,602
Judge
Court
L.A. Superior Santa Monica
Attorneys
Plaintiff
Michael L. Challgren
(The Challgren Law Firm)
Defendant
Experts
Plaintiff
Thomas Kenster
(technical)
Defendant
Michael F. Wright
(technical)
Facts
On July 10, 1992, defendants, BDM Financial, Daniel Aranda and Gene Deshler sent and recommended a loan package to plaintiff, Dr. G. Karlin Michelson, containing certain information on a first trust deed investment. The loan package indicated that the borrowers were seeking a $275,000 loan secured by their nearly complete retirement home located in Greeley Hills, Mariposa County. An appraisal in the loan package indicated that the property was valued at $870,000. On July 27, 1992, plaintiff funded the loan and after one payment, the borrowers defaulted and subsequently declared bankruptcy. The plaintiff acquired the property at a non-judicial foreclosure sale by making a full credit bid in the amount of $320,069.97. The plaintiff's expert opined that the current value of the property was, at best, $180,000 and declining. The plaintiff brought this action against the defendants based on a fraud theory of recovery.
Settlement Discussions
The plaintiff demanded $75,000 increased to $95,000 at trial. The defendant offered $21,000 plus payment (with no interest) over three years totaling $75,000, reduced to $25,000 at trial.
Other Information
The verdict was reached approximately three years and 10 months after the case was filed.
Deliberation
two days
Poll
12-0 (liability); 12-0 (damages for fraudulent misrepresentation against BDM Financial, Daniel Aranda and Gene Deshler); 11-1 (liability); 11-1 (damages for fraudulent concealment against BDM Financial and Calwide Trust Deed Services, Inc.)
Length
eight days
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