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Justice Scale

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Bad Faith Cancellation of Purchase Case - Win at Arbitration

Sellers of a Newport Coast estate and clients of The Ryan Firm (“Sellers”), accepted an offer to sell their family home, but the buyer cancelled the transaction prior to close and demanded her deposit back.  After consulting with The Ryan Firm, the Sellers refused to release the deposit as they understood that the cancellation was not done in good faith.  Ryan Firm attorney Steven Rader methodically and patiently obtained the documents to show that the transaction was indeed not cancelled in good faith – fighting several pitched discovery battles to obtain the crucial evidence.  This evidence included a text message from the buyer’s broker admitting that her client had “buyer’s remorse.”  After a five-day arbitration conducted by Rosty Gore and seasoned litigator Steven Rader, Retired Judge Robert J. Polis of Judicate West agreed that the cancellation was not done in good faith, and that the reasons for the cancellation were simply a pretext for a buyer suffering from “buyer’s remorse.”  Opposing counsel’s trial brief actually complained that Mr. Gore’s cross-examination of buyer and her agent was simply too effective and thus unfair.  On February 26, 2024, Judge Polis deemed the cross-examination effective at revealing a witness who was “not believable” and “deceptive,” finding for the Sellers and ordering escrow to return the deposit to the Sellers. 

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