Opinion ID: 1304454
Heading Depth: 3
Heading Rank: 1

Heading: The John T. Matter

Text: The panel and department found that in October 1977, petitioner and John T. entered into a joint venture agreement to improve and sell real property on Eagle Pass Avenue in Malibu. Under the contract, petitioner, owner of the Eagle Pass property, promised to obtain construction financing and to sell the property once improvements were complete. John T., a contractor, invested $85,000 in the joint venture, and [i]n consideration of said payment petitioner promised to share with him profits from the sale of the property. John T. also agreed to perform certain construction work at the Eagle Pass property and at two other parcels owned by petitioner on Big Rock Drive and Selfridge Drive in Malibu. The fees for these construction services were negotiated in separate contracts. The panel determined that petitioner, without John T.'s knowledge or consent, encumbered the Eagle Pass property with two loans, totalling $120,000 and $500,000, [1] respectively, and that the proceeds from these loans were used for nonventure purposes, including petitioner's living expenses. The department agreed with these findings and further determined that John T. had no knowledge of and did not consent to a $30,000 encumbrance, a portion of which petitioner diverted to his personal use.