Legal Question in Real Estate Law in California

Re: being sued by home buyer

If a lawsuit is "totally bogus" it could perhaps have been stopped, shortly after it was filed and served, by responding with a demurrer or other attack on the complaint's overall validity. Later on, a party can attack a suit, or part of it, by moving for summary judgment or summary adjudication.

The problem is, terminating a lawsuit on the defendant's statement that the suit is "totally bogus" is not within the powers, authority, jurisdiction or purpose of a judge or court clerk.

If the suit can be seen to be without merit "on its face," as, for example, where the Complaint admits that the defendant is a minor and thus couldn't enter into a binding contract, or where it admits facts that show jurisdiction belongs in a different court, or where an essential element of (for example) fraud is not pleaded in the Complaint, the Complaint is probably vulnerable to demurrer by the defendant. However, if the defendant's assertion that the suit is bogus is based upon (for example)some of the facts alleged therein being untrue, how is the judge to know this until the parties have appeared before her or him in person, under oath, and testified, produced evidence, and been cross-examined? The whole purpose of a trial is to determine whether the suit is bogus or whether the defense is bogus, or most likely, whether the truth lies somewhere in between.

In this particular kind of case, selling a property "as is" does NOT lighten the seller's duty to disclose one whit. The seller must still disclose all known facts that might have a material negative effect on value, with perhaps the limited exception of defects that are obvious. All that is accomplished by selling "as is" is that the seller is saying he or she isn't going to fix anything prior to closing.

You should look at the agreement and see if it has an attorney fee clause. If it does, whoever wins will end up paying the reasonable value of the other side's attorney services. This kind of clause is usual in real estate sales contracts and has a real impact on the importance of prevailing.

Further, keep in mind that the agents and brokers who have been sued will have insurance companies handling their defense and ready to pay any damages awarded against their clients.

Has any defendant sought indemnification against the others? Your mother's agent, who is also being sued, perhaps had a duty to make the disclosures in a way that would have prevented this suit, and it's possible the agent or its insurer should indemnify your mom.

I might add that many real estate contracts call for mediation and/or arbitration, and you should verify that any required method of dispute resolution was observed.

Feel free to contact me directly with particulars for a fuller evaluation, without charge.

Re: being sued by home buyer

Summary judgement but only if there are no relevant disputed issues of fact and only questions of law for the judge to resolve.

Re: being sued by home buyer

A bankruptcy may fix the problem.