1st American Warehouse Mortgage v. Topa Ins. CA2/4

FACTS AND PROCEDURAL BACKGROUND

The Joint Venture Litigation (The Thomas Complaint) In October 2005, Cantu and Thomas entered into an agreement to purchase real property located at 1695 Adrienne Street in Corona (the property) as part of a joint venture. Cantu and Thomas agreed to purchase, fix up and flip the house for a quick profit. As part of the joint venture, Thomas and Cantu agreed that Cantu would initially be the sole purchaser of the property. Thomas was to be added to the title once escrow closed because he was not able to qualify for a loan. The two agreed to be equally responsible for paying the necessary expenses, mortgage payments, and repair and renovation costs. Thomas indicated that he would handle the sale because he was a licensed real estate agent.

2 On November 16, 2005, Cantu executed a purchase agreement for the property, which listed 1st American as Cantu’s broker. The purchase agreement was signed by Robert Castaneda (Castaneda) on behalf of 1st American. The seller was represented by an unrelated party, ERA North Orange County Real Estate. Escrow closed on the purchase of the property on December 30, 2005. 1st American and Topa disagree as to when…