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Horiike v. Coldwell Banker Residential Brokerage Co.
California Court of Appeal
225 Cal. App. 4th 427 (2014)
Chris Cortazzo (defendant), a salesperson for Coldwell Banker Residential Brokerage Company (Coldwell) (defendant), was hired to sell a specific Malibu property. Another Coldwell salesperson showed the Malibu property to Hiroshi Horiike (plaintiff), a potential buyer. In the course of showing the property, Cortazzo gave Horiike a flier stating that the property was 15,000 square feet. However, Cortazzo had information stating the property was only 9,434 square feet. Moreover, Cortazzo did not advise Horiike to hire a specialist to verify the area of the property. Horiike and Cortazzo signed a confirmation of a real-estate agency relationship, which explained that Coldwell was the dual agent of both the buyer and the seller. Horiike and Cortazzo also signed a disclosure agreement, which explained that a dual agent had a fiduciary duty to both the buyer and the seller. Horiike later determined that the property was less than 15,000 square feet. Horiike sued Coldwell and Cortazzo, alleging a breach of fiduciary duty. At trial, Coldwell moved for nonsuit on the ground that Cortazzo had no fiduciary duty to Horiike. The trial court granted Coldwell’s motion, and Horiike appealed.
Rule of Law
Holding and Reasoning (Kriegler, J.)
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