Facts

Plaintiffs Juvenal and Maricela Rangel owned a home. Defendant Jacobo “Jacob” Rangel, Juvenal’s brother, co-signed for plaintiff’s home loan and his name appeared on the title. When the plaintiffs sold the home, the defendant demanded, and was paid, $15,000 from escrow to release his interest in the property. The plaintiffs brought suit to recover the payment.

PLAINTIFFS’ CONTENTIONS:
The plaintiffs claimed that defendant gratuitously agreed to co-sign for the home loan, as Maricela’s sister had done. The plaintiffs established that they were never late making any payments on the loan and suggested that defendant’s credit history was poor because he did not pay his bills on time.

DEFENDANT’S CONTENTIONS:
The defendant claimed that his credit was impacted by plaintiff’s late payments on the home loan, and demanded $15,000 as consideration for releasing his interest in the property.

Damages

The plaintiffs sought $15,000 plus interest.

Result

The plaintiffs were awarded $15,000, plus $2,070 in interest.

Other Information

The plaintiffs alleged that defendant had entered into a settlement at mediation, providing for monthly payments, but later claimed he was "pressured" into accepting the agreement. The plaintiffs elected to waive the mediation settlement and go to trial. According to the plaintiffs, plaintiffs and defendant entered into a settlement at mediation providing for monthly payments, but the defendant later contended that he was pressured into accepting the settlement at the time of the mediation. The plaintiffs elected to set aside the mediation settlement and go to trial.