CASE NAME

Peake v. Underwood

California Court of Appeal, Fourth Appellate District, Division 1

(2012)

Issue: Whether a real estate broker is entitled to an award of sanctions against a buyer and her attorney for maintaining a frivolous lawsuit.

C.A.R. position: Yes

Case Status: No briefs filed yet.

De Santis v. Ruppert

California Court of Appeal, First Appellate District

(2011)

Issue: Whether a seller of commercial property has a duty to disclose to a buyer speculative information that is readily available to the buyer upon the buyer’s own investigation.

C.A.R. position: A buyer of commercial property is responsible for conducting its own investigation. A seller does not have to disclose potential conclusions that can be drawn from facts discoverable by the buyer.

Case Status: Oral argument held September 2012. Awaiting court decision.

Meher Mount Corporation v. Hagman Trust

California Court of Appeal, Second Appellate District

(2012)

Issue: Whether a person claiming another’s property by adverse possession needs to pay property tax on the acquired property if the owner of that property is a non-profit exempt from taxation.

C.A.R. position: Yes. Payment of property tax for purpose of adverse possession should not depend on the tax status of the underlying property owner.

Case Status: Case fully briefed. Waiting for oral argument date.

Nguyen v. Lee

California Court of Appeal

(2012)

Issue: Whether a broker is liable to a buyer if escrow funds seized by government agency.

C.A.R. position: Broker not liable if broker did not know of seizure or have any reason to suspect it.

Case Status: Unpublished court decision in September 2012 holding broker not liable to buyer for funds seized by government agency.

Sandler v. Sanchez

California Court of Appeal, Second Appellate District, Division 7

(2012)

Issue: Whether a designated officer of a corporate real estate broker is personally liable for misconduct of a salesperson working for the corporation.

C.A.R. position: The designated officer may be disciplined for lack of supervision but only the corporation has vicarious liability for acts of the salesperson. 

Case Status: Published opinion holding that designated broker is not personally liable for acts of salesperson.

Lyon v. Superior Court (Henley)

California Court of Appeal, Third Appellate District

(2011)

Issue: Whether a clause in a buyer representation agreement that limited the time to bring a legal claim against a broker is extended or tolled during the time the parties mediate.

C.A.R. position: The contractual limitation period is reasonable and enforceable as written.

Case Status: P ublished court decision April 2012 holding that contractual limitation clause is not enforceable by broker against that broker's buyer for claims arising out of the fiduciary relationship.