Horiike v. Coldwell Banker Residential Brokerage Co.
California Court of Appeal
225 Cal. App. 4th 427 (2014)
Cortazzo (defendant), a Coldwell Banker (defendant) salesperson representing the seller of a Malibu property, gave buyer Horiike (plaintiff) a flier listing the property at 15,000 square feet despite having information showing it was only 9,434 square feet, and never advised Horiike to independently verify the size; both Horiike and Cortazzo had signed disclosures acknowledging Coldwell Banker's dual-agency role and the resulting fiduciary duties to both parties. After Horiike learned the true, smaller size and sued for breach of fiduciary duty, the trial court granted Coldwell Banker's motion for nonsuit on the theory that Cortazzo personally owed Horiike no fiduciary duty.
Whether a salesperson acting under a broker who serves as dual agent for both buyer and seller owes the same fiduciary duty to both parties that the broker itself owes.