Starflinger

I.

FACTUAL AND PROCEDURAL BACKGROUND

A. The Real Estate Transaction KBC owns a two-story commercial office building in San Diego (the Property). Starflinger and KBC entered into a real estate purchase and sale agreement (the Purchase Agreement), in which KBC agreed to sell the

Property to Starflinger.1 Subsequently, an option agreement (the Option Agreement) gave Starflinger until June 1, 2017, to decide to complete the transaction according to the terms of the Purchase Agreement. Starflinger paid $300,000 in consideration for the Option Agreement, and those funds were released from escrow to KBC. Consistent with the June 1, 2017 deadline in the Option Agreement, an amendment to the escrow instructions

More specifically, the Purchase Agreement was first entered into between KBC and Southwest Group in June 2016, but on October 3, 2016, Southwest Group assigned all its rights under the Purchase Agreement to Starflinger.

2 stated that if Starflinger did not close escrow by June 1, 2017, the escrow would be cancelled. Among other things, the Purchase Agreement required, as a condition of closing, that KBC provide certain documentation to Starflinger. Due to what…