Doyle v. Department of Real Estate

Opinion

MERRILL, J.

Factual and Procedural Background

Real parties in interest James and Alice Porsche (the Porsches) filed a complaint in the municipal court alleging one cause of action for “fraud and deceit” against appellant Marvin D. Doyle, a licensed real estate broker, arising out of a real estate transaction. The Porsches prayed for damages in the amount of $15,000. The case went to judicial arbitration, and the Porsches were awarded $15,000. Doyle filed a request for a trial de novo.

The parties then agreed to a settlement of the matter. Doyle was to pay the Porsches $10,000 within a specified period of time, and the Porsches were to dismiss the action with prejudice and execute a release. Pursuant to the settlement agreement, Doyle executed a stipulation for entry of judgment in the amount of $15,000. The agreement provided that if Doyle failed to pay the $10,000 within the specified time, the Porsches could file the stipulation and have judgment entered in the action. Doyle failed to make the $10,000 payment, and the stipulation was filed with the court and judgment was entered in favor of the Porsches for $15,000.

[896]

Following the Porsches’ unsuccessful attempts to collect on the judgment, they filed an application with the Department of Real Estate Recovery Account (Recovery Account) for payment of the unsatisfied judgment. The Real Estate Commissioner (Commissioner) granted the Porsches’ application for recovery of $15,000.

Doyle filed a petition for writ of mandate or prohibition in the Sonoma County Superior Court seeking an order directing the Commissioner to deny the Porsches’ application. The court denied the petition, and Doyle appeals.

Discussion

The California Department of Real Estate has a Recovery Account out of which unsatisfied judgments against a licensed real estate broker based on, inter alia, his or her fraud may be paid to the judgment creditor upon a specified application procedure. (Bus. & Prof. Code, § 10450.6 et seq.)

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The broker’s license is suspended on the date of payment from the Recovery Account, and cannot be reinstated until he or she reimburses the Recovery Account for the amount of the payment, plus interest. (Bus. & Prof. Code, § 10475.) The application procedure is set forth in section 10471, which provides in pertinent part: “(a) When an aggrieved person obtains a final judgment in a court of competent jurisdiction . . . against a defendant based upon the defendant’s fraud, misrepresentation, or deceit, made with intent to defraud ... in which the defendant, while licensed under this part, performed acts for which that license was required, the aggrieved person may, upon the judgment becoming final, file an application with the Department of Real Estate for payment from the Recovery Account... of the amount unpaid on the judgment . ... HQ ... HQ (c) The application . . . shall include . . . HO • • • HQ (4) A detailed narrative statement of the facts in explanation of the allegations of the complaint upon which the underlying judgment is based. . . . HQ . . . HQ (7) The following representations and information from the claimant: HQ . . . (C) That the judgment underlying the claim meets the requirements of subdivision (a).”