Steele v. Silver Oak Real Estate CA4/3
Plaintiffs Clare and Jack Steele sold the business assets of their pastry shop and café to a buyer on the condition the buyer enter a new commercial lease in place of theirs. The buyer did obtain a new lease but promptly defaulted on it after her fiancé stole her money. Because the Steeles had signed personal guarantees of the new lease, they remained liable for the rent until the date their original lease would have expired. Although a new tenant was eventually found, the base rent was about $1,000 per month less than under the buyer’s lease — a differential for which the Steeles were responsible under the terms of their guarantees. The Steeles sued the broker who had arranged the sale, defendants Silver Oak Real Estate of Orange County, a California corporation, doing business as Prudential California Realty and Sean Edelstein, its agent, for breach of fiduciary duty, fraud, negligence, plus contribution and equitable indemnity. A jury rendered a verdict in defendants’
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