Stevens Group Fund IV v. Sobrato Development Co.

Plaintiff the Stevens Group Fund IV, a general partnership, brought this action for breach of contract for the sale of real property against defendants Sobrato Development Company No. 810 et al. The jury returned a verdict in favor of plaintiff, but awarded no damages, implicitly finding the fair market value of the property did not exceed the contract price. The trial court then denied plaintiff’s request for specific performance. In subsequent proceedings, the court awarded plaintiff, as prevailing party, costs in the amount of $22,753.74 and attorney’s fees in the amount of $300,000.

On appeal, plaintiff contends the trial court erred both in determining that Civil Code section 3306 did not authorize the recovery of lost rents as consequential damages and in denying its request for specific performance. Defendants cross-appeal, contending the real estate broker violated his duty to disclose his personal interest in the contract thus entitling defendants to judgment as a matter of law. They also contend the trial court erred: (1) in its interpretation of the contract; (2) in excluding extrinsic evidence of commercial real estate transaction custom and practice; (3) in…