Marc Weissman

My handout follows:

It was an ugly year in the legal arena. Money spilled everywhere. As usual, lawyers are the only winners.

The following cases are Appeals Court / Supreme Court. Each case means someone spent a fortune to sue in Superior Court; then someone did not like the trial result and spent another fortune to appeal. And the winner is.....

Contracts: A purchase contract with a $1,000 refundable deposit, 1 year close, subject to zoning approvals, cancelable at any time at Buyer’s unilateral option, is in effect an Option. All Options must have payment of consideration to the Seller. Without consideration this deal is void and the Buyer, who sued for specific performance, owes a pile of lawyer fees to the Seller. Steiner v Thexton (Trial + Appeals)

Arbitration was a major topic in 2008.

Cable Connection: Contract (nothing to do with real estate) is subject to "binding arbitration, subject to judicial review for legal error."

Facts: Fred was at fault. Bob’s damages were $10. Punitive damages of $1M are fair.

This was 5 months after the US Supreme Court decided exactly the opposite under Federal law in Hall.

With that background: What do you do with real estate contracts? Do you have a new disclosure + clause that says:

Foreclosure is a growing area:

Talbott v Hustwit The Owners set up a complicated corporate structure. Refi Lender required the individuals’ personal guarantee. At the foreclosure auction, the property sold CHEAP to Lender. The Lender sued for the deficiency. 580a Anti-deficiency statute does not apply to guarantors. (Trial + Appeals).

Anti-Shark statute CC1695.7 Home Equity Sales Contracts Act requires foreclosure investors / brokers to be bonded. CAR filed a brief showing no bond has ever been issued (because no one understood the law - what was being bonded). So the bonding requirement is void for vagueness. Schweitzer v WI (Appeals reversed Trial)

Disabled Access at apartment building: NO. Tenants have no right to sue their landlord for accommodation. Coronado v Cobblestone (Trial + Appeals). Wheelchair-bound apartment resident fell due to lack of curb-cut. ADA does not apply to rentals.

Landlord evicted restaurant tenant for non-payment. After Court judgment of possession, Landlord must get Sheriff to eject tenant, but Appeals Court ruled Landlord duty to inspect (immediately on judgment, before ejection) for hazards. Stone v Center Trust: After getting evicted but not yet ejected, tenant still in possession kept doing business. When patron was injured in a slip and fall due to leaky pipe, Landlord was responsible. (Trial + Appeals).

Mom and her kid visited Aunt, who owned a home with a backyard pool. Everyone was out front playing. Aunt went inside. Mom went inside. Kid went into back yard and drowned.

Owner has no duty to supervise while a parent was watching. Padilla v Rodas (Trial + Appeals).

Trip and fall. Victim went to Kaiser and was made worse. He sued homeowner for full damages. (Too hard to sue Kaiser?)

Henry v Superior Court (Round 1: Summary Judgment for Owner. Appeal 1: Go to Trial. Trial 1: No medical testimony allowed re Kaiser’s fault. Appeal 2: Yes, it should be allowed)

The apartment complex has secured parking in back; unsecured in front. When a resident found no space at back, he park in front. Victim was car-jacked; shot - quadriplegic. Since there were 3 prior criminal acts (NOT involving guns) at front lot in 2 years there was NOTICE to the Owner of a problem. Tan v Arnel Management Co (Appeals reversed Trial)

FedEx driver was mugged at the FedEx lot. No prior criminal acts = no landlord liability. Ericson (Trial + Appeals).

Hot night, lady opened all her ground floor apartment windows and was raped. So she sues her landlord. She claimed it was too bushy outside her windows, allowing prowlers easy access. Trial Court granted summary judgment for Owner. Appeals said: Go have a trial, let the jury decide who is at fault. Raven v Gamette

At the gym, the Waiver said "We are not responsible for negligence of others." Yoko’s foot stuck to the gum on the treadmill; she fell and broke her .... Oh No. Trial Court granted summary judgment for gym (someone else was negligent, not the gym). Appeals said: Go have a trial; maybe the gym was negligent in failing to clean the mess.

LICENSING Cases:

Contractor Corp got licensed after starting work: President had individual license. B&P Sect 7031 bars any payment to an unlicensed contractor, even if unjust. Great West Contractors v WSS (Appeals reversed Trial)

Automatic revocation of license (without any administrative action) happens if a contractor underreports Workers’ Comp payroll. B&P Sect 7031 bars any payment to unlicensed contractor, even if unjust. Wright v. Issak (Trial + Appeals).

Broker misconduct unrelated to damage claim may be eliminated from trial. Ulloa v. McMillin