A recent legal complaint filed in the Superior Court of California, County of San Francisco, has brought to light serious allegations against two individuals involved in a real estate transaction. Jennifer Phillips, the plaintiff, filed the complaint on December 26, 2024, accusing Bruce D. Rhoades and Timothy J. Luneau of multiple misrepresentations and concealments regarding a property she purchased.
The case revolves around a four-unit building located at 397-399 San Jose Avenue in San Francisco, which Phillips bought from Rhoades and Luneau in December 2022. Shortly after acquiring the property, heavy rainfall exposed significant water damage that had been concealed by the sellers. Phillips claims that the defendants failed to disclose prior water leaks, unpermitted plumbing and electrical work, and excessive noise due to the property's location near an emergency vehicle thoroughfare. Furthermore, one unit was misrepresented as eligible for Airbnb rentals despite being rent-controlled.
Phillips alleges that these omissions and false representations led her to purchase the property under false pretenses. She asserts that had she known about these issues beforehand, she would have either negotiated a lower price or refrained from purchasing altogether. The discovery of toxic mold during repairs added to her distress and financial burden.
The complaint details several causes of action against Rhoades and Luneau: concealment, intentional misrepresentation, negligent misrepresentation, failure to disclose material facts as required by California Civil Code § 1102 et seq., aiding and abetting (specifically against Luneau), unfair business practices under California Business and Professions Code § 17200 et seq., and negligent infliction of emotional distress.
Phillips is seeking various forms of relief from the court including general and special damages for repair costs and emotional distress, statutory damages for violations of disclosure laws, exemplary damages to punish the defendants' conduct, restitution for losses incurred due to their actions, prejudgment interest on monetary awards, reasonable attorney's fees as allowed by law or contract terms, costs associated with bringing the lawsuit forward such as filing fees or expert witness expenses if applicable; additionally requesting any other relief deemed justifiable by presiding judge(s).
Representing Jennifer Phillips are attorneys Katy M. Young and Nancy Park Minkler from Ad Astra Law Group LLP based in San Francisco. The case is assigned Case No.: CGC-24-620955 with proceedings taking place before judges at San Francisco's Superior Court.