Imen

In this atypical real estate transaction, defendant Harry Warner Glassford, a licensed real estate salesman, named himself as copurchaser with Barbara Ward on the written agreement to buy the residence owned by the plaintiffs, Mehdi and Goltaj Imen (the Imens), in order to generate a real estate commission for himself. Shortly after the close of escrow, Glassford quitclaimed his interest in the property to Ward who promptly defaulted on secured notes which represented substantially all of the purchase price. The Imens then filed this action against Glassford, his principal and others seeking damages caused by their fraud, negligence and breach of contract in inducing them to sell their property on terms which Glassford had no intention of performing.

The Real Estate Commissioner, also concerned with Glassford’s allegedly improper conduct, accused Glassford of violating his statutory duties. After a two-day hearing the administrative law judge found Glassford acted fraudulently—entering into a real estate contract with clients having no intention of performing his written promises. The Real Estate Commissioner adopted the findings of the administrative law judge and…

I respectfully disagree with that portion of the majority opinion applying the doctrine of collateral estoppel to this case. I do not believe precedent supports the position or analysis advanced by the majority, but, quite to the contrary, requires a reversal of the decision below.

Underlying the majority’s application of collateral estoppel is its conclusion People v. Sims (1982) 32 Cal.3d 468 [ 186 Cal.Rptr. 77 , 651 P.2d 321 ], mandates the use of the doctrine where the administrative agency involved has “acted in a judicial capacity.” The court in Sims , however, effectively qualified this conclusion by also observing the statutory scheme involved there governing prosecutions for aid to families with dependent children (AFDC) fraud and the circumstances of individuals who receive welfare benefits made application of collateral estoppel particularly appropriate. (Id. at p. 489.) Thus I am not convinced Sims can be limited in the manner set forth by the majority. As was recently stated in Mahon v. Safeco Title Ins. Co. (1988) 199 Cal.App.3d 616 [ 245 Cal.Rptr. 103 ], such a limited interpretation of Sims ignores both the caveats and complexities of that case and the use of the…

[Opinion certified for partial publication. [1] ]

OPINION

WIENER, Acting P.J.

In this atypical real estate transaction, defendant Harry Warner Glassford, a licensed real estate salesman, named himself as copurchaser with Barbara Ward on the written agreement to buy the residence owned by the plaintiffs, Mehdi and Goltaj Imen (the Imens), in order to generate a real estate commission for himself. Shortly after the close of escrow, Glassford quitclaimed his interest in the property to Ward who promptly defaulted on secured notes which represented substantially all of the purchase price. The Imens then filed this action against Glassford, his principal and others seeking damages caused by their fraud, negligence and breach of contract in inducing them to sell their property on terms which Glassford had no intention of performing.

The Real Estate Commissioner, also concerned with Glassford's allegedly improper conduct, accused Glassford of violating his statutory duties. After a two-day hearing the administrative law judge found Glassford acted fraudulently — entering into a real estate contract with clients having no intention of performing his written promises. The Real Estate…