Confidential
Settlement – $35,000Judge
Court
Santa Clara Superior
Attorneys
Plaintiff
Defendant
Experts
Plaintiff
Larry Levy
(technical)
Facts
Plaintiff and defendant entered into a confidential relationship in 1977 which lasted until 1994. In 1978, plaintiff and defendant merged their families and lived as one family. In that same year, defendant entered into an oral contract with plaintiff, assuming fiduciary duties for the couple and assuming general duties to make decisions for the benefit of the merged family. Further, the oral contract provided that defendant would not take advantage of plaintiff's superior resources and assests. In 1980, defendant moved the family to California from New Jersey. In March 1981, defendant induced plaintiff to purchase a house in Marion Avenue Palo Alto and defendant listed her name on the deed as owning one-third of the property. Between 1980 and 1994, there were lengthy periods where defendant contributed no money towards the mortgage on the property. In 1982, defendant and her family purchased a house in Waverly in Palo Alto and caused plaintiff to move with her into the house and pay the mortgage on the property. Starting in 1980 and for over 10 years afterward, defendant and plaintiff opened and maintained a joint checking account to which defendant had full access. The defendant caused plaintiff to subsidize her lifestyle and pay for expensive gifts. The defendant also caused plaintiff to move in and out of different houses owned by defendant or defendant's family in between the times when they lived at Marion. The plaintiff was forced to refinance her home at Marion in 1982, 1985, 1988 and 1990, thereby diluting her equity in her home. In April 1993, plaintiff's mother passed away and plaintiff returned to the Philippines to settle her mother's affairs. Payment on the latest mortgage at Marion thereafter lapsed. The plaintiff had been diagnosed with depression. The defendant contacted plaintiff in the Philippines and discussed how to cure the arrearage on the mortgate. In August 1993, defendant sent papers to plaintiff in the Philippines and had plaintiff sign a Deed of Trust made out to defendant. The defendant took out of Deed of Trust on the property although she owned a one-third interest in the property. there was also a Power of Attorney made out to defendant from August 1993 with plaintiff's purported signature on it. In February 1994, defendant caused plaintiff to sign documents designed to transfer plaintiff's ownership interest in Marion to defendant by threatening to foreclose on plaintiff. The defendant gave plaintiff approximately $59,000 for her interest in the house, which was far less than she was entitled to. The plaintiff sued defendant for breach of fiduciary duty, constructive fraud, conversion and breach of oral contract.
Settlement Discussions
The defendant initially offered nothing. Just prior to trial, defendant offered $20,000, which plaintiff rejected. The matter was settled the morning trial was set to start.
Damages
The plaintiff claimed loss of difference between the actual value of the home and what she received, loss of enjoyment of the use of the property and loss in increase of value of the property.
Other Information
There was an arbitration before Frank A. Jelinch of Jelinch & Rendler on July 10, 1998, wherein the arbitrator found in favor of the defendant. The settlement was reached two years and four months after the case was filed.
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