Horiike v. Coldwell Banker Residential Brokerage Co.Annotate this Case
Seller retained Coldwell Banker Residential Brokerage Company to list a luxury residence for sale. Buyer, also represented by Coldwell Banker, made an offer to purchase the property, and both parties agreed that Coldwell Banker, acting through its associate licensee, would function as a dual agent in the transaction. After the sale was complete, Buyer filed suit alleging breach of fiduciary duty by Coldwell Banker and by the associate licensee because of a significant discrepancy between the square footage of the residence as represented in the marketing materials for the property and as set out in its building permit. The trial court granted nonsuit on the cause of action against the associate licensee, ruling that the associate licensee had no fiduciary duty to Buyer. A jury subsequently found in favor of Coldwell Banker. The Court of Appeal reversed the judgment on the breach of fiduciary duty claim against the associate licensee and Coldwell Banker. The Supreme Court affirmed, holding (1) Coldwell Banker owed to Buyer a duty to learn nd disclose information regarding the discrepancy between the square footage of the residence as advertised and as reflected in publicly recorded documents; and (2) the associate licensee owed Buyer an equivalent duty of disclosure under Cal. Civ. Code. 2079.13(b).