A contentious legal battle over a real estate transaction has culminated in a court ruling that addresses allegations of fraud, misrepresentation, and breach of contract. The plaintiffs, Jeremy Decuir and Jessica Clark, filed their complaint in the Superior Court of Los Angeles County on April 5, 2019, against West Coast Escrow (WCE), Ronald G. Jackson, and Pacific Union International Inc., doing business as Compass.
The case revolves around Decuir and Clark's purchase of a property in Inglewood from the Estate of Chrispin H. Edwards. According to court documents, the plaintiffs signed a Probate Purchase Agreement on March 5, 2019, removing all contingencies upon their offer to purchase the property. Escrow was opened by WCE the following day. The plaintiffs were represented by Ronald G. Jackson and Erik Miles from Compass as dual agents for both buyer and seller.
Escrow closed on April 5, 2019. However, issues arose when Decuir discovered a Report of Building Records and Code Violations on February 18, 2020, indicating that part of the property had been built without proper permits. The plaintiffs claimed they were unaware of this report at the time of purchase due to alleged misrepresentations by WCE and Compass.
In their second amended complaint (SAC), Decuir and Clark accused all defendants of fraud and deceit, negligent misrepresentation, and breach of contract specifically against Compass Defendants. They asserted that they relied on false information about the property's compliance with municipal codes when deciding to proceed with the purchase.
WCE sought summary judgment arguing that Decuir and Clark could not prove reliance on any alleged misrepresentations since they had waived all contingencies before escrow opened. Moreover, WCE contended it was not required to disclose any reports related to municipal permitting laws per escrow instructions.
While WCE's motion was pending, mediation led to a settlement between Decuir/Clark and Compass Defendants for $8,000 in exchange for dismissing claims against them with prejudice. Subsequently, WCE filed a motion seeking approximately $36,000 in costs incurred while proving matters denied by Decuir/Clark during discovery requests for admissions (RFA). The trial court denied this motion citing insufficient evidence from WCE justifying these costs.
The appellate court affirmed both orders: denying WCE’s post-judgment motion for costs under Code of Civil Procedure section 2033.420; affirming good faith determination regarding settlement between Buyers & Compass Defendants under sections 877 & 877.6 despite Buyers' claims that subsequent events should invalidate it.
Representing parties included Garrett & Tully’s Ryan C Squire & Scott B Mahler for WCE; Law Offices Lloyd Kirschbaum’s Lloyd Kirschbaum for Plaintiffs/Appellants; Gaglione Dolan Kaplan’s Robert T Dolan & Martina A Silas representing Ronald G Jackson/Pacific Union International Inc., DBA Compass. Judge Timothy Patrick Dillon presided over proceedings under Case ID B325278.