Opinion ID: 1192010
Heading Depth: 1
Heading Rank: 24

Heading: this court improperly denied to plaintiff application of the law governing joint tort-feasors, without any explanation.

Text: The trial court's Memorandum Decision and Order and this Court's opinion are silent on the joint conduct of Mark Bazeghi, Cobbs and Kennevick. All acted in concert with each other to deliver straw leases, including the lease to The Professionals, Inc. Each was delivered for the express purpose of inducing the bank to grant permanent, long-term financing and inducing Hudson to complete the purchase of the office building. The law governing the liability of joint tort-feasors is so established in our judicial system that nothing further should have to be said. However, since this Court has, for some reason not disclosed, elected not to discuss the issue, further elaboration seems appropriate. It is difficult to conceive a factual situation in which it would be more obvious that the law governing joint tort-feasors should be applied. Mark Bazeghi testified that he had advised first Kennevick and then Cobbs of Bazeghi's desperate need for help prior to the signing of the leases by Cobbs and Kennevick. Bazeghi testified that I explained to him that I needed some leases to comply with a lender requirement, and we were short, and seeking the solution for it ... and we had a deadline on the conversion of the construction financing to permanent financing and that the deadline was very close. (Tr.Vol 14, p. 2445, L. 8-11, 15-19, p. 2446, L. 1-3) Bazeghi testified so I asked for his help. I asked him (Cobbs) to find tenants for me or perhaps come up with some kind of straw lease so we would comply with the bank's requirements ... (Tr.Vol. 14, p. 2246, L. 6-7, L. 21-25) Kennevick testified that the leases signed by Cobbs and Kennevick were straw, meaningless documents, signed strictly to help Mr. Bazeghi to be able to get his long-term financing and that would be the end of it, (Tr.Vol. 8, p. 1166, L. 9-14) were never intended from the start to be an enforceable lease, (Tr.Vol. 8, p. 1180, L. 1-4) and that the invalid and unenforceable leases would be useful only to the extent that it would be able to let Mr. Bazeghi be able to get his minimum square footage rented on paper. (Tr.Vol. 8, p. 1181, L. 10-17) Cobbs likewise testified that the leases were signed by him and Kennevick so that Mark Bazeghi could get his long term loan, that Cobbs/Kennevick leased the property for that purpose but with no intent to be liable on the lease to (Mark Bazeghi) or anyone else. (Tr.Vol. 8, p. 1269, L. 19-25, p. 1270, L. 1-5) It seems apparent that there was no intent to be liable because they thought Bazeghi's hold harmless agreements would protect them. Asked whether he had any objection to Mark Bazeghi using the leases to obtain long term financing, Kennevick testified No, I really didn't. I knew Mark Bazeghi very well. I knew Abbass and the other people involved with that in Webster 3. I knew them to be successful developers. (Tr.Vol. 15, p. 2624, L. 3-13) Cobbs obviously agreed with Kennevick's perception of Mark Bazeghi's financial capacity. Cobbs was shown Mark Bazeghi's silver and gold holdings prior to signing the leases. He testified he (Mark Bazeghi) showed me his holdings at that time, and I know of his personal wealth. He showed it to me in cold silver, as well as gold, and hundreds of thousands of dollars. (Tr. Vol. 8, p. 1272, L. 7-16) Cobbs testified that when Mark Bazeghi opened up the safety deposit box and showed Cobbs his gold (t)here were hundreds and hundreds of Kruggerands, and at that time they were selling, I recall, mentally figuring out that it represented close to half a million dollars in gold, Kruggerands, ... and I knew right then that this man, you know, was very wealthy. (Tr.Vol. 16, p. 2749, L. 13-23) When asked at trial whether Mark Bazeghi's display of wealth caused Cobbs to take more risk in the lease transaction than he normally would take, Cobbs testified I think it played a part in it. (Tr.Vol. 16, p. 2819, L. 14-19) Kennevick testified that he had assumed that Mark Bazeghi would be selling the office building and that he understood that a seller needed to have long term financing approved in order to make it a marketable project. (Tr.Vol. 8, p. 1179, L. 2-5, 13-16) Cobbs testified that he was aware, when he signed the leases, that there was a possible purchaser for the building who had been ill. (Tr.Vol. 8, p. 1270, L. 6-12, 20-25) Cobbs also testified that he knew that if long term financing could be obtained on the office building, it would be a help to consummate the sale somewhere down the line to a prospective buyer. (Tr.Vol. 8, p. 1279, L. 11-24) Cobbs didn't even recall whether he had signed leases for two or three suites in the office building. He testified I was there at the request of Mr. Bazeghi, and I would have at that time been willing to lease whatever he requested. (Tr.Vol. 16, p. 2777, L. 13-24) The jury did not find that Cobbs and Kennevick intended that Hudson would be deceived as a result of their straw leases and their other representations acting in concert with Mark Bazeghi. This is irrelevant to a determination as to whether they, acting by themselves or jointly with Mark Bazeghi, committed the torts of negligent nondisclosure or constructive fraud. Suffice it to say, Mark Bazeghi, Lyle Cobbs and Jack Kennevick acted jointly and in concert in their endeavors to present the Cobbs/Kennevick straw leases and the worthless lease to The Professionals, Inc. in order to induce the Bank to grant permanent financing and to induce Hudson to conclude the purchase of the office building. The jury, while finding that Plaintiff failed to prove the elements of common law fraud on the part of Mark Bazeghi, Cobbs and Kennevick, found that all three of them were guilty of gross negligence which was the proximate cause of Hudson's damages. In the words of the trial court, in commenting on certain of the evidence which had been introduced relating to the actions of Cobbs and Kennevick, that for Cobbs and Kennevick to sign the leases, knowing that they would be presented to a bank and that the bank would rely on them in deciding whether to grant permanent financing would be at a minimum the kind of gross negligence, putting it in its kindest light, the kind of gross negligence that Cheney would be designed to deter. (Tr.Vol. 11, p. 1722, L. 19-25, p. 1723, L. 1-5) It seems inconceivable that this Court can overlook these facts, as well as the law governing joint tort-feasors, and fail to conclude as a matter of law that the torts of negligent nondisclosure and constructive fraud, if not negligent misrepresentation, were committed by Cobbs and Kennevick and in so doing they were acting jointly with Mark Bazeghi. The law governing the commission of torts by joint tortfeasors is discussed at pp. 56-58 of Appellant's Brief and pp. 16-20 of Appellant's Reply Brief.