BASIC FACTS
Case Name: Lacambra vs. First Team Real Estate et al
Case No.: 07CC11357
Defendants: First Team Real Estate, Joe Duenas and Cameron Merage. (Does 1-20 Inclusive)
Defense Counsel(s): Frederick W. Trester and Thomas Y. Lucero (Marder & Manning, Kass, Ellrod, Ramirez LLP) for First Team Real Estate, Joe Duenas and Cameron Merage.
Status: Case Dismissed in Superior Court and will be refiled in the US Courts (Southern CA District) to include Defendant's Counsel as Defendant.
Status: Case Dismissed in Superior Court and will be refiled in the US Courts (Southern CA District) to include Defendant's Counsel as Defendant.
ABOUT THE NAME
This action arises from a dispute on commissions. At the time, Robert was a holder of a CA Department of Real Estate Salesperson’s License and referred a real estate transaction to Defendant Joe Duenas, an associate at First Team Real Estate in Aliso Viejo CA to help structure a “1031 Exchange”, a tax sheltering strategy, for a long time client.
After a needs based analysis, the decision was made to pursue a 1031 Exchange to minimize the tax liabilities and save the client money. Lacking the requisite experience, Robert brought in Defendant Joe Duenas to assist him. In the real estate industry, it is common practice to split commissions with another professional to facilitate the completion of transactions. Defendant Duenas’ refusal to pay Robert after the transaction closed earned him the not so flattering designation of “Unprofessional”.
True to form, when it was time for Defendant First Team Real Estate to hire a legal firm to defend them, it wasn’t very far from their kind. They hired more “unprofessional(s)”. The law firm and attorneys that Robert has been battling with in this particular case have used just about every dirty trick in the book including sending moving papers to the home that he was evicted from and claiming on a number of occasions that they have not received Robert’s responses or moving papers. In this particular case, an old saying holds true – “Birds of the same feather flock together.”
PRELIMINARY STATEMENT
(from the actual complaint)
Behind some of society’s most egregious deprivations, we find an individual and a group of co-conspirators gorged with greed, lacking morality, athirst for ruthlessness and absolute with deception; with cunning they ply their trade and amass for themselves, at great price to others, something for nothing.
WHY IS THIS IMPORTANT?
An old adage rings true - “Do not mess with a man’s livelihood”. Commission earners have a life that is unique. In most cases, it is a feast and famine existence. One month you are flushed with cash and the next you are just squeaking by to pay your bills. It is an interesting existence where your only boss is really your own customer. Generally, there are no income ceilings and no floors. What you bring home is based on your efforts. Commissioned wage earners (usually salespeople) are usually self-contained businesses. They only get paid when they complete a transaction. Everything else in between is an investment of their time, money and talent. When a transaction they originated closes and they are not paid, they are in a world of hurt. In this case, Robert was evicted and has failed to pay child-support payments, bills and other obligations. This case is important because it will send a message to those who take a person’s livelihood lightly.
But if that isn’t enough, Defendant Duenas’ email refusing to pay Robert his commission is a classic. Keep in mind that before Robert’s introduction, Mr. Duenas and the client have never met before.
“Robert, I realize that you are in a tough spot in your personal & business life. However, I am convinced it is because you(sic) focus is on self serving ideas, deeds and practices. You are not owed any money by me legally, ethically or in any other manner.”
First Team Real Estate and it’s broker Owner/Broker Cameron Merage are Defendants in so far as they are tasked by the DRE Commissioner to exercise reasonable supervision. This is treated in the complaint in this manner:
California Real Estate Laws mandate the supervision of a Licensed Salespersons by a Broker. Failure to do so is not only unethical but also violates state licensing laws. In the event of a dispute, it is not acceptable in the eyes of the law to plead ignorance since it is the broker’s duty to know every aspect of the salesperson’s business as it relates to the company (First Team Real Estate). The duty to supervise exists irrespective of the salesperson’s status of employment – whether an employee or an independent contractor. Pertinent laws to this effect state the following:
CA Business and Professions Code Section 10177(h)
The commissioner may suspend or revoke the license of a real estate licensee, or may deny the issuance of a license to an applicant, who has done any of the following, or may suspend or revoke the license of a corporation, or deny the issuance of a license to a corporation, if an officer, director, or person owning or controlling 10 percent or more of the corporation's stock has done any of the following: (h) As a broker licensee, failed to exercise reasonable supervision over the activities of his or her salespersons, or, as the officer designated by a corporate broker licensee, failed to exercise reasonable supervision and control of the activities of the corporation for which a real estate license is required.
