Legal Question in Civil Litigation in California

IN 2005, I hired Nelson Shelton and Associates, and engaged the services of Ron Nelson, allegedly the owner and broker and another alleged broker, Martha Panella. They listed the property for $1,750,000, which was over $200k over the comparative value. Immediately they provided an offer for $1.9 million, however, we were being asked to pay our contractor $150k for upgrades. We declined and the buyer and escrow disappeared. $57k was to have been deposited into escrow and $100k 10 days later. Also, Nelson and Panella with Nelson Shelton & Associates.

2. Nelson and Panella also constructed a $5 million plus investment scheme, with Nelson Shelton as broker. July 2005

3. Nelson Shelton became aware of the name usage of Ron Nelson in July 2005.

4. Nelson Shelton paid $50k to a homeowner in July 2005, due to Ron Nelson and Panella's illegal acitivities.

5. Sept. 2005, Nelson Shelton fires Ron Nelson, but not Panella. Nelson Shelton does not advise client, with list agreement and other agreements and does not advise the DRE.

6. Ron Nelson is allowed to keep his license, without the DRE and myself knowing about his crimes.

7. Nelson Shelton is made aware that Ron Nelson, a mere agent, is starting a real estate brokerage, under Duggan Nelson and should know that it is for fraud purposes.

8. Ron Nelson is not required to turn in house keys to Nelson Shelton and paper work of agreements, he later uses said house key and moves himself in and feign purchase by use of forgery checks. May 2006.

9. Ron Nelson in Nov. 2006 is evicted from said property and on May 31, 2008, Ronald Nelson is convicted of criminal acts of forgrery and fraud and ordered to pay a $330k restitution.

10. A complaint is filed with the DRE and on or about Nov. 2008, they revoke Ron Nelson's license and Nelson Shelton responds to complaint. The DRE sends letter out on Dec. 1, 2008

11. A civil complaint was filed on Sept. 14, 2011

A. Nelson Shelton is alleging that they did not discover Ron Nelson's fraud until after he was terminated around Oct. 2005. They also contradict themself and say that they fired Ronald Nelson and notified the DRE, because of the fraud.

B. Nelson Shelton is also alleging a cause of action date of Oct. 2005.

Please advise if the discovery date on or after May 31, 2008, due to concealment and fraud is sustainable.


Asked on 2/13/12, 1:42 pm

2 Answers from Attorneys
Terry A. Nelson Nelson & Lawless

It appears any civil cause of action for fraud or breach of listing agreement / contract accrued in 2005. I would assume the civil complaint filed in 2011 will be dismissed on statute grounds, since it was not filed within three years of the incident for fraud, or within four years for breach. Even if you were timely in filing, you haven't stated anything other than the brokers had a listing agreement but failed to find a buyer to successfully close escrow, and you rejected the offer they did bring. The rest of your numbered facts seem irrelevant to the listing and sale issues.

If you are saying [confusingly] that someone somehow fraudulently occupied YOUR house and was evicted by you in 2008, then a three year statute of limitations for fraud would also have run before your 2011 complaint was filed.

Your time has passed for action on this, by years.

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Answered on 2/14/12, 4:49 pm
Anthony Roach Law Office of Anthony A. Roach

A lot of the facts that you provide do not support a civil action for fraud. You need to have the matter reviewed by a competent real estate attorney, including all of the documents to make a better determination.

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Answered on 2/22/12, 8:23 am


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