Hallett v. Khau CA2/4
Defendant and appellant Andy Khau owned a commercial property located at 729 Merchant Street in downtown Los Angeles. Khau represented in advertising materials and, ultimately, a sales agreement, that the property included 8,450 square feet of warehouse space. Plaintiffs and respondents Patrick Hallett and the company he formed to buy the property, 729 Merchant, LLC, purchased the property from Khau for $1.85 million. Hallett subsequently discovered that the property had only 7,490 square feet of warehouse space, approximately 11 percent less than was advertised. Plaintiffs sued Khau for damages, alleging intentional misrepresentation, negligent misrepresentation, and breach of contract. A jury found for plaintiffs on all counts and awarded them $481,000 in compensatory damages.
On appeal, Khau contends that a disclaimer on a property information sheet and a provision in the sales agreement imposed a duty on plaintiffs to inspect the property.
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