youtube  facebook  linkedin  twitter fairHousewebsite  R blue whitewebsite

You are here: Home | Member News | Horiike v. Coldwell Banker

Horiike v. Coldwell Banker

Case Comment: Horiike v. Coldwell Banker - Reaffirming the Broker-Agent Relationship

Tom Jacobson

Tom Jacobson concentrates his practice on real estate and environmental matters throughout California and in Utah. During his career he has represented brokers, Associations of REALTORS", commercial landlords and developers. Tom is a graduate of the University of Utah College of Law. In addition to practicing full time, Tom is a certified instructor for Utah real estate continuing education.

 I.  INTRODUCTION

The California Supreme Court's (the "Court") review of Horiike v. Coldwell Banker Residential Brokerage Company1 provoked substantial speculation and conjecture prior to the Court's decision, published November 21, 2016. Scholars and real estate professionals voiced their concerns about the repercussions of the anticipated decision.2  Depending on one's perspective, the decision was either a sign of relief or an unfortunate outcome. Despite considerable anticipation, in the end the Court did nothing more than reiterate existing law, leaving in place all of the advantages, drawbacks, conflicts, issues, and other labels affixed to California's dual agency balancing act.

Our colleague and learned member of our bat, Rafael Chodos, recently published in the Journalan excellent article on the perspective of the Horiike case.  Chodos emphasized that scholars may ask certain questions about the case, including why the Court even took the case given the direction of its decision and concurrence with the Court of Appeal. Chodos provided an insightful analysis of constructive fraud and fiduciary duty, and questioned why the Court did not address issues of constructive fraud.5 Chodos also provided an excellent analysis of dual agency and the inherent conflict of interest many lawyers perceive with the scheme adopted by the legislature.6 

In practice, attorneys who advise brokers, buyers, and sellers do not have the luxury of knowing what was in the minds of the Court justices.  Though there was much anticipation surrounding the outcome of the Horiike case and many who thought the days of dual agency might be over, the Court left the law of dual agency untouched and simply based its decision on existing law and precedent.  This article details the facts of the Horiike case and analyzes the Court's decision and its ramifications.

 READ MORE

 

You are here: Home | Member News | Horiike v. Coldwell Banker