Greg Smith v. Robert H. Key, Arivest Corporation, et al.
Published: Oct. 23, 1999 | Result Date: Jul. 23, 1999 | Filing Date: Jan. 1, 1900 |Case number: N077592 Bench Decision – $435,000
Judge
Court
San Diego Superior
Attorneys
Plaintiff
Defendant
Facts
Plaintiff Smith and defendant Key were in a partnership to purchase and resell a parcel of real property. The plaintiff found the property, negotiated with the parties, put up $50,000 to lock in the sale price with the seller and found the buyer. Key managed the mechanics of transferring the property. The sellers' interest in the property was sold to Arivest Properties and then resold to the buyer. Defendant Key failed to disclose to anyone that Arivest was not legally formed and that Key actually took an interest in the property as an individual. Corporate Realty Advisors Inc., an Arizona real estate brokerage firm, received a $520,000 commission for the sale of an interest in the property to Arivest. Arivest collected $1,350,000 for the sale of an interest in the property to the buyer. Key admitted later that he was the broker of record under his California Broker's License and not Corporate reality Advisors, Inc. After Key collected the $1,870,000, he informed plaintiff for the first time there was no half interest deal and he paid plaintiff $500,000 as a broker's fee. Key admitted that plaintiff never represented to him that plaintiff was a licensed real estate broker nor was plaintiff indentified in any of the escrow documents as a broker.
Settlement Discussions
The plaintiff demanded $100,000. The defendant offered $20,000.
Damages
$435,000 computed as half of $1,350,000 plus half of the fraudulently concealed $520,000 broker's fee, less a $500,000 credit for what was already paid.
Other Information
Judgment was reached one year and four months after the case was filed.
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