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CONFIDENTIAL

Dec. 2, 2000

Real Property
Fraud
Negligence

Confidential

Settlement –  $1,035,050

Judge

Paul G. Flynn

Court

L.A. Superior Santa Monica


Attorneys

Plaintiff

Natasha Roit


Defendant

Kenneth L. Heisz

Pamela L. Cox

Heesok Park

Michael F. Bell

Andrew L. Leff
(Spile Leff & Goor LLP)


Experts

Plaintiff

E.D. Michael
(technical)

Mark S. Malan
(technical)

Awtar Singh
(technical)

Ella Kheirkhahi
(technical)

Edward Cramer
(technical)

Defendant

Daniel E. Pradel
(technical)

Marshall Lew
(technical)

Gregory F. Rzonca
(technical)

Norman Eichel
(technical)

Alan D. Wallace
(technical)

Facts

The plaintiff purchased hillside real property in the Malibu area with the intention to build a pool and tennis court
on the lower lot. Prior to purchase, she had hired a geologist to inspect the property. The plaintiff claimed the
geologist advised the plaintiff that the property was safe and she could proceed with building the pool and
tennis court. Based on that analysis, the plaintiff proceeded into escrow. The plaintiff claimed the sellers of the
property, as well as their broker, knew that the property had previously failed a geological examinaiton and fell
out of escrow as a result, but failed to properly and timely disclose this. Their broker, who represented the
sellers in the prior failed transaction, represented instead that the property had a prior positive geological. The
plaintiff claimed neither the sellers nor their broker revealed that the prior geological was written, and failed to
provide it. The buyerÆs broker was allegedly told during escrow that there was a crack in the foundation of the
property and the property had previously failed escrow due to a negative geological, but failed to disclose these
facts to the buyer.

Damages

$1 million to fix the property due to the underlying landslide.

Other Information

<M>A three-day mediation with retired judge Victor Barrera did not result in a settlement. Jean Boylan assisted in achieving the settlement with the sellers and the sellersÆ broker. Judge Paul G. Flynn assisted in the settlement with the buyerÆs broker on the day of trial.</M>


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