Arbuthnot

Appellants contend the trial court should have set off against the damage award an amount stipulated in a settlement agreement, that there was insufficient evidence to support the jury’s verdict, and that the trial court gave an erroneous jury instruction.

The judgment is reversed and remanded for a hearing on the issue of setoff. In all other respects, the judgment is affirmed.

Factual and Procedural Background

The Arbuthnots purchased a residence in Orinda located on a cul-de-sac known as Silverwood Court in 1978. The rear of the property sloped downhill into a ravine, and there was a history of soil instability in the area. An adjoining lot was owned by John Spaulding, an executive with Getty Oil Company, who, in 1981, was transferred to Utah.

Relocation Realty Service Corporation (Relocation Realty), pursuant to a contract with Getty Oil, assisted in the sale of transferred employees’ homes. If the property was not sold quickly, Relocation Realty paid the employee the equity value of the house, acquiring what it called an “equitable interest” in the house. Legal title remained with the employee until the property was sold to another party. Relocation Realty…