Fakheri

I. INTRODUCTION

Arturo Rubinstein (Rubinstein) and Fab Rock Investments LLC (Fab Rock) (together, defendants) and Yoram Yehuda, doing business as Malibu Development and Construction, (Yehuda) orally agreed to purchase, renovate, and sell a residential property. When the property was sold, defendants did not pay Yehuda what he believed was his share of the proceeds and he brought an action against them. Following a bench trial, the trial court found that defendants breached their oral agreement with Yehuda and awarded him $866,171 plus prejudgment interest.1 Defendants appeal, contending that the court abused its discretion in failing to apply their unclean hands affirmative defense to Yehuda’s action and erred in considering in its decision two notices of judgment liens that were filed in this case, but not admitted in evidence at trial. We affirm.

After the judgment was entered, Yehuda transferred his entire interest in the judgment to Parviz Fakheri. On May 3, 2021, we granted Fakheri’s motion to be substituted for Yehuda as a party to this appeal.

II. BACKGROUND2

A. Yehuda’s Complaint

In his complaint,3 Yehuda alleged that in June 2013, he and defendants…