Holmes v. Summer

116 Cal. Rptr. 3d 419 (2010)

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Holmes v. Summer

California Court of Appeal, Fourth District
116 Cal. Rptr. 3d 419 (2010)

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Facts

This case arose at a time when rampant foreclosures and short sales created general disruption in the real estate marketplace. Sieglinde Summer (defendant) was the real estate sales agent who represented the sellers of a residential property that Phil and Jenille Holmes (plaintiffs) contracted to buy. The sale failed to close. The Holmeses, who consequently suffered financial losses because they had sold their old house in order to finance the transaction, sued Summer for damages. The trial evidence showed that, when she presented the contract to the Holmeses, Summer knew but failed to disclose that the property was encumbered by mortgages totaling far more than its sale price, and that the transaction was doomed to fail because neither the sellers nor their lenders were prepared to make up the difference. The trial court ruled that Summer owed no duty of disclosure to the Holmeses and dismissed the suit. The Holmeses appealed to the California Court of Appeal.

Rule of Law

Issue

Holding and Reasoning (Moore, J.)

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