Question
I. NARRATIVE FACTS: The Goffs owned a luxury single-family residence in Malibu. It has three stories. Each story is a different shape. Each story is
I. NARRATIVE FACTS: The Goffs owned a luxury single-family residence in Malibu. It has three stories. Each story is a different shape. Each story is an irregular shape. The rooms are consequently irregularly shaped. Public information from the tax assessor's office describes the property as having a residence of 9,434 square feet. The Goffs had to sell the property because Mr. Goff accepted a job in Detroit, Michigan. The Goffs engaged George Costanza, a licensed real estate salesperson employed by Sellwell Realty, Inc., to sell the property. Costanza viewed the property, obtained the available public information, and listed the property on the MLS. The listing and the subsequent flyers and promotional material stated that the residence had "approximately 15,000 square feet of living areas." The listing price was $15,000,000.00. The Staffords were represented by Elaine Benes, a licensed real estate salesperson also employed by Sellwell Realty, Inc. Benes made an offer of $12,000,000.00 for the Goffs' property on behalf of the Staffords. When the offer was made, all parties agreed that Sellwell Realty, Inc., acting through Costanza and Benes, would act as a dual agent in the transaction. The Goffs accepted the offer. The sale closed. After the sale was consummated, during the course of permitting for some work on the residence, the Staffords discovered that the residence did not have 15,000 square feet of living space and that instead it had only 9,434 square feet. The Staffords were furious contending that with 9,434 square feet the residence is worth only $9,000,000.00. The Staffords filed a lawsuit against Costanza and Sellwell Realty, Inc., alleging a breach of fiduciary duty. In other words, the Staffords (the buyers) sued the broker and the sellers' agent (the listing agent) but not their own agent (Benes). II. QUESTIONS: 1. Did Sellwell breach its fiduciary duties to the Staffords? If so, please specify the duties breached and how they were breached. If not, please set forth how Sellwell fulfilled all applicable duties in the transaction. 2. Did Costanza (the sellers' agent) breach his fiduciary duties to the Staffords (the buyers)? If so, please specify the duties breached and how they were breached. If not, please set forth how Costanza fulfilled all applicable duties in the transaction. 3. As indicated in the Narrative Facts, the Staffords have sued Sellwell and Costanza for breach of fiduciary duty only. Could the Staffords also have sued for fraud?
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