Edmonds

John J. Augustyn appeals a declaratory relief judgment limiting recovery from the real estate fund (Fund) established by the Real Estate Education, Research and Recovery Act (Bus. & Prof. Code, § 10470 et seq., the Act) to the individual $100,000 account of real estate broker Wayne Burton and precluding recovery from any of his licensed subagents’ accounts pursuant to sections 10471 and 10474. The judgment purports to adjudicate the rights of several victimized investors whose claims are separate from those of Augustyn and apparently unrelated to each other’s. However, each of these persons was deemed to have appeared through their counsel, Robert J. Klitgaard. Accordingly, as a matter of equity and fairness, we treat Augustyn’s appeal as being representative in nature on behalf of all those victimized investors named in the declaratory relief judgment. For the reasons which follow, we conclude Augustyn’s factual and legal challenges to the declaratory relief judgment have merit and reverse the judgment as to him and the other victimized investors.

Factual and Procedural Background

The pertinent portion of the stipulated record reveals Burton, a licensed real estate…