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Real Property
Partnership
Finder's Fees

Robert Lugliani, M.D., Claimant and Cross-Respondent v. Robert Vukanovich, Esq., Respondent and Cross-Claimant

Published: Apr. 19, 1997 | Result Date: Mar. 12, 1997 | Filing Date: Jan. 1, 1900 |

Case number: 721800135295 –  $425,958

Judge

Eric M. Epstein

Court

American Arbitration Association


Attorneys

Plaintiff

Melvyn B. Fliegel


Defendant

Robert Vukanovich


Experts

Plaintiff

Scott H. Racine
(technical)

Facts

In 1990, Robert Lugliani, M.D.and Robert Vukanovich, formed a partnership to acquire single-family residences in the state of Washington for rental to tenants. Lugliani agreed to advance the funds required to purchase the homes on notes secured by deeds of trust bearing 10 percent annual interest, payable in 1997. Vukanovich moved from Los Angeles to Washington and found several single-family homes and other property for the partnership to acquire. Vukanovich managed the partnership and arranged the purchase of the homes and charged a finder's fee on several of the homes. He also charged a finder's fee for the acquisition of property for the development of the residential lots. The total finder's fees on all the purchases amounted to $223,000. The rental homes did not produce sufficient rents or appreciation to pay the notes and deeds of trust encumbering them, resulting in a partnership deficiency and debt to Lugliani of $450,000. Lugliani brought this action against Vukanovich based on a fraudulent concealment theory of recovery. Vukanovich cross-claimed against Lugliani for breach of contract and violation of usury statutes.

Settlement Discussions

The settlement discussions were not disclosed.

Damages

The claimant alleged $1.3 million in damages (per the respondent) or $500,000 in damages (per the claimant)

Other Information

The award was rendered approximately one year and three months after the case was filed. The arbitration was held on Dec. 5 and Dec. 6, 1996 before Eric Epstein of American Arbitration Association, resulting in the reported award. The arbitrator also awarded 80 percent of the fees and expenses of the AAA and the compensation of the arbitrator against Vukanovich.


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