Chu v. Kaplan
Published: Jun. 21, 2001 | Result Date: Nov. 20, 2000 | Filing Date: Jan. 1, 1900 |Case number: SC058560 Bench Decision – $0
Judge
Court
L.A. Superior Santa Monica
Attorneys
Plaintiff
Defendant
Facts
In February 1998, the plaintiff entered into a contract with the defendant to purchase a tri-plex in West Los
Angeles. During escrow, the parties discovered that the city previously made a mistake in classifying the
property as a tri-plex when purchased by the defendants. The City advised the escrow officer that the legal use
of the property was limited to use as a duplex. The defendant offered to allow the plaintiff to cancel the escrow,
but plaintiff refused and demanded a tri-plex as agreed upon. The defendant informed the plaintiff of the
inability to do so given the CityÆs mistake and again offered to return plaintiffÆs deposit to him and cancel
escrow or complete the transaction as it stood.
The plaintiff was willing to complete the transaction but wanted a discount in the price,
which defendants refused. The plaintiff took no other action and the escrow expired on its own
terms without the plaintiff completing the transaction. The plaintiff left his money on deposit and
when the defendantÆs efforts were successful with the City to obtain tri-plex zoning over two
years later, the plaintiff sued for specific performance, fraud and damages.
Settlement Discussions
Prior to the outset of discovery, the defendant offered $5,000. The plaintiff refused. Just prior to trial, the plaintiff made a C.C.P. Section 998 demand of $15,000.
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