Marcus & Millichap Real Estate Investment Brokerage Co. v. Hock Investment Co.

Marcus & Millichap Real Estate Investment Brokerage Company (Marcus & Millichap or Broker) appeals from a trial court order denying its petition to compel arbitration. We conclude the trial court correctly found there was no agreement to arbitrate the dispute at issue. Consequently, we affirm.

I

Facts

This case arises from a real estate transaction in which Hock Investment Company and Bryan Silverstein (buyers) purchased a 79-unit apartment complex from Country Club Partners (sellers). Marcus & Millichap represented both the sellers and the buyers in the transaction.

After the sale closed, buyers filed suit against sellers (including nine individual partners) alleging that sellers had misrepresented and concealed certain plumbing problems in the complex. The original complaint also named the sellers’ agent, Marcus & Millichap, as a defendant and alleged Marcus & Millichap was negligent for failing to discover and disclose the plumbing defects. However, the buyers dismissed the claim against Marcus & Millichap without prejudice when they learned the claim might not be covered by Marcus & Millichap’s insurance. Before it was dismissed as a defendant, Marcus & Millichap…