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Real Property
Fraud
Misrepresentation

James Keifer, Kathleen Keifer, Emily Keifer, et al. v. Steven Kauffman, Christine Kauffman, Beverly Higgins, et al.

Published: May 4, 2004 | Result Date: Aug. 18, 2003 | Filing Date: Jan. 1, 1900 |

Case number: BC251701 Verdict –  $0

Judge

Robert H. O'Brien

Court

L.A. Superior Central


Attorneys

Plaintiff

Moses A. Lebovits
(Daniels, Fine, Israel, Schonbuch & Lebovits LLP)

Howard Gest


Defendant

Charles W. Jenkins

Javier VanOordt

Fredric W. Trester
(Manning & Kass Ellrod Ramirez Trester LLP)

Kathleen S. Braden

Gregory C. Pyfrom


Experts

Plaintiff

Charles B. Pyke
(technical)

Richard Scarborough
(technical)

Vincent Terranova
(technical)

David A. Stern
(technical)

James Farmer
(technical)

Marianne Inouye MBA
(technical)

Jeffrey L. Harris
(medical)

Daniel J. Wallace
(medical)

Lawrence S. Mihalas
(medical)

Desiree Badr
(technical)

Stuart Salot
(technical)

Defendant

James J. Seltzer
(technical)

Michael A. Caggiano
(technical)

Rodney Bluestone M.D.
(medical)

Eugene Malitz
(medical)

Nancy Escher
(technical)

Tanya Thompson
(technical)

Harry Louis Skalsky
(technical)

Keri Burke
(technical)

Facts

The subject suit arose from the purchase and sale of an exclusive gated beach property located at 33002 Pacific Coast Highway in Malibu. The plaintiffs and their three children moved into the property on Jan. 5, 2001. Within one month, the plaintiffs learned that the home was mold infested due to years of water intrusion from an upstairs deck. The plaintiffs received no notice or disclosure concerning the water intrusion before the close of escrow. The plaintiffs' experts advised them to move from the home immediately. An industrial hygienist hired by the plaintiffs declared that the home was unfit for human habitation. The plaintiffs relocated and a foreclosure followed. The plaintiffs sued all parties for fraud, conspiracy to commit fraud, misrepresentation, negligence, professional negligence, defamation of credit etc. All the defendants settled with the exception of Amerispec and Weldon Horton and the subject suit by the plaintiffs against Amerispec Home Inspection Company and Weldon Horton resulted in a defense verdict.

Settlement Discussions

The plaintiffs had demanded the following: From the sellers, $400,000 in general damages. The parties settled for $175,000, plus an assignment of insurance rights. From the sellers agents, $400,000 in general damages. The parties settled for $150,000. From the buyers' agents, $400,000 in general damages. The parties settled for $400,000. From the defendants Horton/Amerispec, $400,000 in general damages. There was no settlement with these defendants who were successful at trial.

Specials in Evidence

$1,050,000 (including future costs)

Damages

The plaintiffs claimed loss of their downpayment in the purchase of the property ($344,000); defamation due to credit - foreclosure and penalty costs associated with poor credit ($650,000); personal property damage ($250,000) and loss of earnings to Kiefer ($90,000).

Injuries

The plaintiffs claimed emotional distress to the children, illness related to mold such as bronchial ailments and allergic reactions to the entire family, onset of rheumatoid arthritis to Kiefer. These injuries were alleged to be debilitating, permanent and life threatening.

Other Information

The plaintiff filed a motion for new trial which was denied. The defendant filed a motion for attorney fees and costs in excess of $600,000 which was denied. An appeal was filed and is pending.


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