King

Roosevelt and Margie Green (the Greens) sued James A. King (King) in the municipal court to recover $1,000 deposited by them in escrow. King cross-complained for libel naming as defendants the Greens and Joseph K. Borges (Borges), their attorney. King prayed for $25,000 general damages and $25,000 punitive damages. The matter was transferred to the superior court where the libel action was tried separately.

A jury awarded King $3,500 compensatory damages and $2,500 punitive damages against Borges. The trial judge ordered a new trial. King appeals from that order.

The Greens were in the market to buy a house. A Mrs. Taylor offered a house for sale and King was her broker. The Greens made a deposit with King of $1,000 on Taylor’s house. An escrow was opened but the Greens could not qualify for the requisite financing. The escrow was mutually cancelled by Taylor and the Greens.

The Greens asked for their $1,000- deposit back but King laid claim to it and the escrow refused to deliver it.

The Greens consulted Borges who wrote the following letter to the State of California, Division of Real Estate, with copies distributed as indicated :■

This letter upon which the claim…