Client Lawsuit Ends in Victory for California Associate

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A recently resolved civil lawsuit initially covered in "The New York Times" and on NBC's "Today" show was simply the "unfounded claims of an individual home buyer," RE/MAX International President Vinnie Tracey said in a press release April 14.

On April 10, a North San Diego County jury took less than two hours to rule in favor of Mike Little of RE/MAX Associates in Encinitas, Calif. He was being sued by a couple who in the summer of 2005 believed they paid too much for their new home.

The lawsuit attracted national attention and had been postponed due to significant media coverage. Some news accounts reported that courts might hold real estate agents responsible for lower home values.
"This case was never about falling prices or the current real estate market," Tracey said. "It was simply about the unfounded claims of an individual home buyer, claims that could not be substantiated in any way."

Little, who showed the couple more than 60 homes during their search, was understandably pleased by the verdict.

"My life has been turned upside down during the last two years, but the sun is shining much brighter today," he said. "It's been a very difficult time, but now I feel totally vindicated."
Added Broker/Owner Geoffrey Mountain, who was also named in the lawsuit, "We had opportunities to settle this case, but just refused to do it. It may have cost a lot of money to defend, but we were absolutely certain no one did anything wrong."

Read the RE/MAX International press release about the verdict.

Read a North County Times story about the verdict. An excerpt:
The jury found that Little had not breached his responsibility to the couple as their agent, nor had he been negligent.

"Mr. Little did what he was supposed to do," jury forewoman Wendi Brick said. "The bottom line is that you (as a buyer) are responsible when you sign a contract and purchase something."
Read a Voice of San Diego story about the verdict. An excerpt:

As for the buyers' responsibilities, juror after juror gushed praise for Little and heaped criticism on the Ummels' failure to research the comparable sales themselves.
(Attorney David) Bright argued the trial had illuminated the hard work that responsible real estate professionals, those that have been in the industry for a while, do for their clients.
"I think Realtors are scapegoats for a declining market," Bright said after the verdict was reached Thursday afternoon. "There are always people out there who will blame someone for something that is beyond their control."