Facts

In January 2003, plaintiff Rodney Barber agreed to sell to Donald Smith his property in Whittier. Defendant Delicia Barba, a broker and owner of Pacific Coast Financial & Realty (PCFR), agreed to handle the sales transactions. Throughout the course of the transaction, Barber resided in Cambodia and relied on Barba as his representative.

Barba convinced Barber to assist Smith's purchase by "taking back" a loan in the amount of $46,000 to be secured by a second deed of trust, and that this was not a risk to Barber because he could always foreclose the property and own it again. In May, Smith executed the note, in June, he executed the trust and the sales transaction was completed. However, the deed of trust had not been recorded.

By September 2006, the note had not been repaid. By December, Barber sought referral of a foreclosure trustee and contacted Barba for advice. In January 2007, Barber commenced foreclosure proceedings and discovered his deed of trust had not been recorded. Barber recorded the trust in 2007, discovered it to be worthless, and brought suit against Barba.

PLAINTIFF'S CONTENTIONS:
Barber claimed that Barba was liable for Smith's actions because she breached her fiduciary duty as his representative agent. Barba was also liable under fraud and misrepresentation. Smith refinanced the property sometime between the completion of the sales transaction and recordation of the deed of trust, and did not repay the loan owed to Barber. When Barber completed the foreclosure, all of the equity had been borrowed and his loan was worthless.

Damages

Smith claimed damages of $46,000 plus interest.

Result

The court returned a verdict for the defendant.

Other Information

FILING DATE: Jan. 7, 2007.