Rodgers-Vieira v. First American Title Co. CA3
C100448
Cal. Ct. App.Jun 4, 2025Background
- Plaintiffs inherited and co-owned an 800-acre property in San Joaquin County, which was divided into six parcels for sale pursuant to a probate court directive.
- First American Title Company was engaged in 2016 to handle escrow and title for the sale of Parcel 1 but recorded an incorrect legal description, affecting other parcels, especially Parcel 4.
- In 2017, plaintiffs entered into a contract to sell Parcel 4 to the Lees for $1.6 million, but the sale failed due to the unresolved title issue, and the Lees moved on to buy another property.
- First American delayed correcting the title issue for several months, causing the deal with the Lees to expire; Parcel 4 was ultimately sold for $1.2 million, $400,000 less than the initial contract.
- Plaintiffs sued First American for negligence, seeking damages and prejudgment interest; the trial court awarded both after a bench trial.
- First American appealed, challenging findings on causation, damages, comparative negligence, mitigation, and the calculation of prejudgment interest.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Causation | First American’s negligence directly caused failed sale | Lees' preference for another property broke the chain | First American's negligence was a substantial factor |
| Damages | Lost $400k as fair market value difference, supported by contract | Damages speculative; contract unenforceable; no appraisal | Sufficient certainty; $400k is proper basis |
| Failure to Mitigate / Comparative Negligence | Acted reasonably; not aware of "insure through" option | Plaintiffs failed to alert about deadline, could have avoided loss | Plaintiffs not negligent; no failure to mitigate |
| Prejudgment Interest | Should be awarded from date of sale | Uncertain, not calculable until after complaint filed | Award modified: runs from complaint filing date |
Key Cases Cited
- Ladd v. County of San Mateo, 12 Cal.4th 913 (Cal. 1996) (elements of negligence: duty, breach, causation)
- Mayes v. Bryan, 139 Cal.App.4th 1075 (Cal. Ct. App. 2006) (substantial factor test for causation in negligence)
- Rutherford v. Owens-Illinois, Inc., 16 Cal.4th 953 (Cal. 1997) ("substantial factor" causation standard)
- Keading v. Keading, 60 Cal.App.5th 1115 (Cal. Ct. App. 2021) (standards of review for bench trials)
- Bleecher v. Conte, 29 Cal.3d 345 (Cal. 1981) (implied covenant of good faith and fair dealing)
- CMSH Co. v. Antelope Development, Inc., 223 Cal.App.3d 174 (Cal. Ct. App. 1990) (trial court discretion over measure of damages)