Justice Is Fair - Really?
We all want to get the best return on our money, don't we?
In 1979 I had an opportunity to make a loan to an individual. The loan would be secured by a second trust deed on a small commercial building, he owned, which was in a small northern California town. The loan amount was $30,000. The reason I was willing to loan the money was to get a return greater than in other investments. The building was worth more than the total of the first loan and my second loan so I thought my investment was secure.
The owner of the building was going to take advantage of a new law in California that would allow him to devide the building into three seperate ownerships. The building had three seperate offices. These would become office condo's. It sounded like a good idea to me. The owner retained a real estate broker to sell the building for him. The broker was a friend of mine. It was not long before the broker stopped by my office. He said he a buyer interested in the property. The buyer's interest was sparked by the potential of splitting the ownership into the three units. The broker asked me what I thought of the idea. I told him it sounded like a good idea to me. I should have never said those words!
The buyer bought the building. There was not enough cash in the deal for me to get all of the amount I loaned back so I took a note securred by a first trust deed on a piece of vacant land owned by the man I loaned the original amount to. The real estate market turned down and I did not receive payments on the vacant land. After a couple of years he deeded me the property since the value of the property had dropped and the amount he owed me plus the interest was more than the land was worth. This was the early 1980's and the bottom had fell out of the real estate market.
Now back to the buyers of the commercial building. They did go through the paperwork and split the building into three seperate ownerships. But the market had slipped so bad that they lost money, so they went and saw an attorney. The attorney said the owner had misrepresented the property. He had told them he had leased part of the building, which he had not. The attorney said the broker had not completed a good market study. AND the attorney said they had relied on my statement that it would be a good idea to split the ownership. Since I had a security interest in the building the attorney brought a lawsuit that said the three of us: the owner, the broker and myself together commited fraud.
After many months the attorney made an offer to settle. I said why? I had not done anything wrong! So we moved toward trial. Just before the court date my attorney (I had a seperate attorney as did the real estate broker) was appointed to the superior court bench. So I had to retain another attorney. He said this is a very involved case. It was by that time. So I had to pay him $5,000 to "get up to speed" on the case and get ready for trial. A jury trial! At that time my attorney charged $1,000 per day while in trial.
The trial took 13 days! We did not know how long the trial was going to go so each day I brought a check for $1,000 for my attorney! I will never forget one Friday. When the jury was seated a women jury member caughed. The judge asked her if she was ok. She said she might be coming down with something. So the judge said we would recess until Monday so she could recover. My attorney said he would have to charge me $500 for showing up that day.
The lawsuit was for return of the purchase price, attorney fees, and $500,000 mental suffering! Let me tell you that was a long thirteen days plus weekends.
The verdict came back. The owner of the building - guilty. The real estate broker - pay back the real estate commission and me - 12 votes not guilty.
The owner filed bankruptcy. The judge overturned the jury on the comission. The buyers of the building appealed the case. Another $5,000 to the attorney to respond to the appeal. The appeal was denied.
My attorney said now it is our turn. We will file suit against them for filing a malicious lawsuit. It really sounded like the thing to do. After all I had spent over $35,000 defending myself! In talking to a good friend he said: "Forget it". Go on with your life. It you don't your focus for a couple of years will be revenge. "Even if you win you will loose".
I thought it through and took his advice. I don't know what ever happened to the people who sued me. Through this I leaned: "The value of a lesson is in direct proportion to the tuition". It is better to forgive and move on.
In 1979 I had an opportunity to make a loan to an individual. The loan would be secured by a second trust deed on a small commercial building, he owned, which was in a small northern California town. The loan amount was $30,000. The reason I was willing to loan the money was to get a return greater than in other investments. The building was worth more than the total of the first loan and my second loan so I thought my investment was secure.
The owner of the building was going to take advantage of a new law in California that would allow him to devide the building into three seperate ownerships. The building had three seperate offices. These would become office condo's. It sounded like a good idea to me. The owner retained a real estate broker to sell the building for him. The broker was a friend of mine. It was not long before the broker stopped by my office. He said he a buyer interested in the property. The buyer's interest was sparked by the potential of splitting the ownership into the three units. The broker asked me what I thought of the idea. I told him it sounded like a good idea to me. I should have never said those words!
The buyer bought the building. There was not enough cash in the deal for me to get all of the amount I loaned back so I took a note securred by a first trust deed on a piece of vacant land owned by the man I loaned the original amount to. The real estate market turned down and I did not receive payments on the vacant land. After a couple of years he deeded me the property since the value of the property had dropped and the amount he owed me plus the interest was more than the land was worth. This was the early 1980's and the bottom had fell out of the real estate market.
Now back to the buyers of the commercial building. They did go through the paperwork and split the building into three seperate ownerships. But the market had slipped so bad that they lost money, so they went and saw an attorney. The attorney said the owner had misrepresented the property. He had told them he had leased part of the building, which he had not. The attorney said the broker had not completed a good market study. AND the attorney said they had relied on my statement that it would be a good idea to split the ownership. Since I had a security interest in the building the attorney brought a lawsuit that said the three of us: the owner, the broker and myself together commited fraud.
After many months the attorney made an offer to settle. I said why? I had not done anything wrong! So we moved toward trial. Just before the court date my attorney (I had a seperate attorney as did the real estate broker) was appointed to the superior court bench. So I had to retain another attorney. He said this is a very involved case. It was by that time. So I had to pay him $5,000 to "get up to speed" on the case and get ready for trial. A jury trial! At that time my attorney charged $1,000 per day while in trial.
The trial took 13 days! We did not know how long the trial was going to go so each day I brought a check for $1,000 for my attorney! I will never forget one Friday. When the jury was seated a women jury member caughed. The judge asked her if she was ok. She said she might be coming down with something. So the judge said we would recess until Monday so she could recover. My attorney said he would have to charge me $500 for showing up that day.
The lawsuit was for return of the purchase price, attorney fees, and $500,000 mental suffering! Let me tell you that was a long thirteen days plus weekends.
The verdict came back. The owner of the building - guilty. The real estate broker - pay back the real estate commission and me - 12 votes not guilty.
The owner filed bankruptcy. The judge overturned the jury on the comission. The buyers of the building appealed the case. Another $5,000 to the attorney to respond to the appeal. The appeal was denied.
My attorney said now it is our turn. We will file suit against them for filing a malicious lawsuit. It really sounded like the thing to do. After all I had spent over $35,000 defending myself! In talking to a good friend he said: "Forget it". Go on with your life. It you don't your focus for a couple of years will be revenge. "Even if you win you will loose".
I thought it through and took his advice. I don't know what ever happened to the people who sued me. Through this I leaned: "The value of a lesson is in direct proportion to the tuition". It is better to forgive and move on.
posted by Paul Edgren at 5:06 PM
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