Fraud Found by Jury Against a Real Estate Broker
Our client, a 52 year-old single woman, purchased a home in a
beautiful rural area on a lake north of Los Angeles. The home was in a
gated community of many houses that share a lake. When the client
purchased the home, the Real Estate Broker and Sales Agent assured the
client that the home was in good condition and did not need any major
maintenance or repairs.
Shortly after close of escrow the client moved in and started to improve
the property by installing a new deck from which to view sunsets over
the lake with her toddler granddaughter.
Within a few weeks the toilet started to back up, the sink and shower
would not drain and the client called plumbers to fix the problem. At
that point, she discovered that this drainage problem had been an issue
at the house for many years and no one had disclosed it.
Specifically, the drainage problem was the house did not have a modern
sewage system at all. It did not have a sewer. It did not have a septic
tank. There was only a dirt pit into which the raw sewage would dump
from the drains in the house. When that pit was full, sewage overflowed
into the house.
The client then stopped using the toilet and showers while she attempted
to find a way to fix it. She did not have any money left to fix it after
purchasing the house. For almost a year she communicated with the Real
Estate Sales Agent, who assured her that this problem would be fixed.
Then, the Real Estate Sales Agent abruptly stopped taking her calls.
During this entire time the client had to go to great lengths to do
routine things anyone should be able to do in their home; she either
used her neighbor’s bathroom or drove 2.5 miles to the nearest gas
station to use their facilities. She showered at the gym each morning.
When her 3 year-old granddaughter visited, she was forced to either use
the lawn outside or depend on the neighbor’s good graces for bathroom
privileges.
Finally after about a year, the client was able to connect the property
up to the municipal sewage system.
Stephen Allen Jamieson and R. Bruce Evans represented the client when
she took her case before the Los Angeles Superior Court. At trial, the
Real Estate Broker and Sales Agent argued that she did not know about
the sewage pit and potential overflow problems. However, the jury
disbelieved the Agent.
They found against the Real Estate Broker company and the Sales Agent
for professional negligence and in favor of Jamieson’s and Evan’s
client for a substantial amount of money. This sum represented the
difference in the value of land as sold versus the value of the land as
the Agent had represented, along with compensation for the emotional
distress our client suffered. The case was thereafter settled for a
confidential dollar amount.
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