Confidential
Settlement – $20,000Facts
In 1995, the plaintiff contractors purchased an earthquake-damaged house for $115,000 for the purpose of rehabilitating it. After the close of escrow, the plaintiffs claimed they discovered that the house was part of a project that was subject to fill-soil defects. The defendants denied this contention. A construction defects suit involving other homes in the tract had been filed against the developer and prosecuted to a successful conclusion in 1991. The plaintiffs claimed the defendant listing broker had represented the owners of other homes in the area, including the seller of a house two doors down the block, where allegedly more extensive disclosures about the soils condition were made, and that they were not made to the plaintiffs. The plaintiffs also claimed a soils report generated during the construction defect lawsuit had been provided to the plaintiffs' agent by the listing agent, but that this report was substantially amended by a later report that was in the possession of the listing broker but was not disclosed. (The defendants denied that the later report altered the conclusions of the earlier report.) The plaintiffs alleged that the listing broker, who had acted as listing agent and broker for the home two doors down in the project where the extensive disclosures were allegedly made, had reviewed and approved the disclosures made in the present transaction. The plaintiffs also alleged that the property had been subject to long-term run-off from an artesian spring, that the listing agent had discovered the run-off during escrow, and that she had allegedly concealed it. The plaintiffs brought this action against the listing agent and broker and the selling agent and broker based on misrepresentation, concealment and negligence theories of recovery. The defendant selling agent and broker brought a cross-complaint for indemnity. The listing broker and agent also brought a cross-complaint for indemnity.
Settlement Discussions
The plaintiffs made an initial settlement demand for $125,000. The defendants selling agent and broker made a C.C.P. º998 offer of compromise for a waiver of costs. Per the plaintiffs, the listing agent and broker initially offered $5,000.
Damages
The cross-complainants claimed damages through indemnity.
Other Information
The settlement was reached approximately nine months after the case was filed.
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