Ballou

The plaintiffs appeal the trial court’s grant of a motion for new trial on the issue of damages. The defendants cross-appeal. We reverse the granting of the new trial motion and affirm the judgment.

This case arises from defendants’ attempt to defraud plaintiffs out of their real estate broker’s commission. The defendants, Richard Traweek and the Traweek Investment Company, Inc. (TIC) are the promoters and managers of a number of limited partnerships. In April of 1978, one of those limited partnerships, Master Properties No. 6, acting through TIC, purchased an apartment building in Brentwood—the Sunset Terrace. The limited partnership paid $4,076,000 for the building which included a 6 percent commission to TIC. Defendant Richard Traweek is president of TIC and 50 percent shareholder in the corporation along with his father, Sherman Traweek. Sherman Traweek, in addition to owning a half interest in TIC, was one of the three general partners in the limited partnership.

Three months later, in July 1978, TIC put the apartment building back on the market for sale. The asking price was $5.7 million, an increase of $1.7 million in three months. At trial, the defendants would…