Gray•Duffy, LLP Obtains Favorable Settlement for Client in Lawsuit Stemming from Real Estate Sales Transaction

July 2014

Overview

Barry D. Brown of Gray•Duffy’s Redwood City office successfully negotiated the settlement of a case involving a real estate sales transaction, and obtained an $85,000 reduction on the promissory note with the sellers due to the sellers’ failure to disclose a structural defect with the property.

Discussion

Caulley vs. Leming, et al This lawsuit involves the client’s home in Napa, California which she purchased from the defendants in 2010. Not long after occupying the property, the client noticed that the main structural member of a large elevated deck at the rear of the residence had come out of its metal hanger. Based upon physical evidence, the firm took the position that this was a condition that should have been disclosed during the real estate sales transaction. Gray•Duffy retained a construction expert who inspected the property and came to the same conclusion that it appeared that this condition was known by the prior owners and was intentionally concealed by the use of thick elastomeric paint. The defendants denied that they knew of this condition and that the house was sold “as is”. During the litigation, the deposition of the real estate broker who represented both sides was taken. The broker testified that shortly before the sale of the property to the firm’s client, he was at the home with the sellers and at the specific location where the defective condition existed. At that time, there was a contractor who was working in the specific area of the defective condition. Thus, we were able to refute the defendants’ argument that they did not know of the condition at the time of the sale. As a result, Gray•Duffy was able to resolve the case shortly before trial with the client receiving an $85,000 reduction in the promissory note which the sellers/defendants had taken back in the sales transaction.

Please Note: This article is necessarily general in nature and is not a substitute for legal advice with respect to any particular case. Readers should consult with an attorney before taking any action affecting their interests.