Opinion ID: 2629946
Heading Depth: 1
Heading Rank: 3

Heading: The Documents

Text: [¶ 5] On February 20, 2001, Meima signed a contract to buy real estate located in Torrington. The document named the Northern Commercial Trust [3] as the buyer, provided that title to the house would be conveyed to the Northern Commercial Trust, offered a purchase price of $186,000.00 (a $1,000.00 cashier's check purchased by Anthony Meima had been remitted as earnest money), indicated that the offer was contingent upon loan approval with financing to be Other, and set a June 16, 2001, closing date. On February 21, 2001, the seller submitted a counter-offer to Meima that increased the purchase price to $198,000.00 and the total earnest money to $5,000.00, required the buyer to provide a satisfactory letter of prequalification from [a] lender by March 30, 2001, and set a mandatory closing date of June 11, 2001 (or the buyer would forfeit the earnest money). The buyer subsequently agreed to the increased purchase price and earnest money (another $4,000.00 cashier's check had been remitted by Anthony Meima on April 10, 2001) and to provide a cash sale commitment or lender prequalification letter on April 15, 2001. [¶ 6] On April 29, 2001, Meima signed (and Broemmel signed as a Witness) an addendum to the house purchase contract stating that all financing contingencies shall be removed, Buyer and Seller shall proceed with dates set for closing, and Buyer agrees to the disclosure of the attached financial statement to the Seller. The attached financial statement was the Personal Financial Statement of Broemmel and his wife, Lani K. Lee. The seller apparently agreed to the addendum on May 7, 2001. [¶ 7] On May 25, 2001, a Real Estate Purchase Option was executed between David A. Kubich, [4] as seller, and Tom C. Broemmel or Assigns, as buyer, which option was recorded June 11, 2002. The option granted Broemmel the exclusive right to purchase the Baltic-Birchville Properties (including specified mineral interests and all rights and interests acquired from Meima in these properties, situate in California) (hereinafter the Baltic properties) for $140,000.00 if Broemmel exercised the option prior to November 25, 2002. Meima had purchased the Baltic properties, mountain property north of Lake Tahoe, in 1979 for $800,000.00. [¶ 8] On June 11, 2001, Meima signed another addendum to the house purchase contract that extended the closing date to on or before August 9, 2001, required Meima to submit an additional $10,000.00 in earnest money by June 12, 2001, and obligated Meima to pay eight percent interest on the balance of the purchase price until the closing date. The seller signed the addendum on June 12, 2001, and a cashier's check for $10,000.00 was issued on June 12, 2001, listing the purchaser as [A]nthony [M]eima. [¶ 9] Meima and Broemmel then executed a July 24, 2001, Terms of Lease/Purchase Agreement that included the following terms: (a) Broemmel will pay $185,817.91 to finance the balance of the Torrington house purchase price for Anthony Meima. Broemmel will hold [the] property in trust for Meima on a lease/purchase for a price determined by all costs and expenses incurred by Broemmel to acquire that property and under the other conditions set forth in the agreement. (b) Meima will pay a monthly lease payment of $2,000.00, which payments will not be applied to offset the amount Broemmel contributed to the house's purchase price. If the full home loan is not paid in full within one year, the monthly lease payments will increase to $2,500.00. (c) Meima will pay all taxes, insurance, assessments and all costs and expenses incurred by Broemmel associated with the house. (d) Meima will provide Broemmel the Celina Flat Mine property free and clear of encumbrances as additional collateral.... The property is valued at $70,000 and if Meima defaults in monthly payments for 2 months, Broemmel may sell original property and `X' property to recover all costs and expenses incurred by Broemmel. [T]his property reverts back to Meima when Broemmel is paid all moneys due him.... (e) Meima will also provide to Broemmel a collection of Mauser rifles at a cost of $16,500.00. If Meima defaults in monthly payments for 2 months, Meima relinquishes all equity in Mauser rifles[.] (f) Meima will pay Broemmel a $10,000.00 profit in addition to the lease payments for financing the house. The $10,000.00 profit may be paid from the profit on the Baltic properties or from stock options related to the Baltic properties. [5] Meima will also provide Broemmel a new 98K Mauser Rifle as partial payment for financing this house. (g) Meima grants Broemmel, as trustee, total control of the Baltic properties to sell or do [whatever] is necessary to recover any losses incurred as a result of the purchase of said property. Broemmel will remain as trustee for 2 years or as long as Broemmel has not been paid off for the purchase of Meima's home. (h) It is further agreed ... that when the Baltic properties are sold, [Broemmel] will receive 20% of the profit and 50% of any stock options received as a result of the sale. Tom Broemmel signed the agreement as Owner, and Anthony Meima signed the agreement as Buyer. [¶ 10] The Buyer listed on the Torrington house closing statement dated July 24, 2001, is Thomas Broemmel, Trustee of the Northern Commercial Trust. On July 24, 2001, the Torrington house was deeded to THOMAS BROEMMEL, Trustee of the Northern Commercial Trust, dated the 24th day of July, 2001 .... [¶ 11] On July 25, 2001, a Promissory Note was executed between the Borrower, Anthony Meima, and the Lender, Thomas C. Broemmel and Lani K. Lee. In it, the Borrower promised to pay $185,817.91 (with no interest) and $2,000.00 monthly lease payments (that will not reduce the amount of this note) to the Lender subject to the conditions of an Addendum to Promissory Note dated July 25, 2001 Terms of Lease/Purchase Agreement. The addendum contains many of the same terms as the July 24, 2001, lease/purchase agreement, with the following exceptions: (a) Broemmel, as trustee of Northern Commercial Trust, has sole authority to sell or convey said property in his own name until he is paid in full the $185,817.91 and all costs and expenses associated with this acquisition. The Northern Commercial Trust is limited to an agreement by Tom Broemmel to hold [the Torrington house] for the benefit of Anthony Meima pending performance of all terms of this preceding lease/purchase agreement by Anthony Meima. If Meima defaults in monthly payments for 2 months, Broemmel may sell [the Torrington house] and Celina Flat Mine properties to recover the principal, all costs and expenses incurred by Broemmel. (b) Meima will provide Broemmel a collection of 13-98K Mauser rifles to Broemmel at a cost of $16,500.00. If Meima defaults in monthly payments for 2 months, Meima relinquishes all equity in Mauser rifles. A list of the rifles was attached. (c) When the Baltic properties are sold, Broemmel will receive 20% of the sales price if the sales price is $500,000 or less to a maximum of $100,000[] and 50% of any stock options received as a result of the sale. (d) Broemmel will allow Meima to sell the Baltic properties or the Celina Flat Mine property provide[d] the proceeds are applied toward the retirement of the $185,817.91[.] [¶ 12] On July 27, 2001, Anthony Meima granted a specific power of attorney to Broemmel in all matter[s] relating to the Torrington house on behalf of him personally and for my trust, Northern Commercial Trust.... [6] In turn, Broemmel signed an Agreement to Execute Power of Attorney on July 27, 2001, promising to execute a specific durable power of attorney for Anthony Meima to have sole authority and discretion of the Baltic Properties, although Meima's authority was to cease if Meima defaulted on the promissory note dated July 25, 2001. [¶ 13] On April 1, 2002, a Mortgage Deed With Release of Homestead was executed naming the Northern Commercial Trust dated July 24, 2002 (although it presumably meant to say 2001), as mortgagor, Thomas C. Broemmel and Lani K. Lee as the mortgagees, and the Torrington house as the mortgaged property for $185,817.91. The mortgage was signed by Thomas C. Broemmel for the Northern Commercial Trust. [¶ 14] In June 2003, a portion of the Baltic properties was sold to Michael Sinclair for about $440,000.00. Broemmel was named as the property's seller. After accounting for costs associated with the sale, the balance of $381,603.21 was distributed as follows: $142,000.00 to Broemmel for partial repayment, $30,000.00 to Meima's financial backer, $22,600.00 to Meima's trial attorney for outstanding legal fees, [7] and $187,003.21 to Meima's trial attorney's trust account. Eventually, by mutual agreement, $20,000.00 was distributed to Broemmel and $15,000.00 was distributed to Meima from the trust account.