SAN FRANCISCO – California's First Appellate District Court of Appeal recently remanded a dispute involving a real estate investor and her lawyer and accountant to Marin County Superior Court.
Associate Justice Jon B. Streeter of the appeals court issued a 14-page ruling Sep. 21 remanding the lawsuit filed by Barbara Epis, described in court documents as "a wealthy elderly woman and sophisticated real estate investor," against her accountant Scott Jolley and her lawyer Vernon Bradley. The lawsuit claimed breach of contract, negligent and intentional misrepresentation, breach of fiduciary duty, elder abuse and violation of the unfair competition law.
"The parties invested together in a series of real estate transactions in Marin County," court documents in the ruling said. "Through shrewd real estate dealings over the course of 30 years, Epis had amassed a fortune of some $22 million," and Jolley and Bradley, her now-deceased attorney, "used her as a 'deep pocket' investor in properties they planned to renovate and sell at a profit."
"Epis provided the cash required for down payments and certain other financial needs during development; Bradley managed the renovation and development of the properties they purchased; and Jolley provided credit financing and funds for debt service and remodeling," the documents said. "It appears Jolley and Bradley also handled accounting and legal issues that arose."
During trial, Epis "took the position that the funds she provided were loans, but there was substantial evidence supporting the trial court’s finding that Epis was a joint venturer with Bradley and Jolley," the ruling said. The jury decided in Jolley's favor, and awarded Bradley $185,385.74 on a breach of contract claim against Jolley. The same jury decided in Bradley's favor in the unfair competition matter, stating that "a violation of the rules of professional conduct could not be the basis for a UCL violation."
Elis then appealed the trial court's decision.
In his ruling, Streeter stated, "Whether there was a causal connection between Bradley’s ethical violation and Epis’ losses, that is, whether the losses occurred as a result of the unfairness or unlawfulness, is a question for the trial court upon remand."
In his ruling, Streeter also remanded the trial court's decision that found Bradley to be the owner of a houseboat where he had lived for 20 years.