Peake

Joanne Peake purchased a home from Marviel and Deanna Underwood. About two years later, Peake brought an action against the Underwoods and the Underwoods’ real estate agent, Paul Ferrell. Peake sought to recover damages for defendants’ alleged failure to disclose defective subfloors in the home.

After the case had been pending for more than one year, Ferrell moved for terminating and monetary sanctions against Peake and her counsel, Norman Shaw, under Code of Civil Procedure section 128.7. Section 128.7 provides a trial court with the discretionary authority to impose sanctions when a party files a pleading that is factually or legally frivolous. Ferrell argued Peake’s claims were factually and legally frivolous because the undisputed evidence showed Ferrell had fulfilled his statutory and common law disclosure duties, and Peake had actual notice of facts disclosing prior problems with the subfloors. Peake declined to dismiss the action during the statutory safe harbor period, and instead amended her complaint to add claims similar to claims she had previously dismissed.

After a hearing, the court found Ferrell met his burden to show Peake’s claims were “without legal…