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Case of the Month August 2009

Jury Awards Developer $277K for Neighbor's Interference

Patera v. Love

Type of Case:
Real Property - Trespass/Nuisance
Interference with Economic Advantage

Specific Liability:
Trespassing on developer's property and making disparaging remarks to potential buyers damaged developer's business

General Injury:
Monetary damages

Jurisdiction:
State: Wisconsin
Court: Circuit Court of Wisconsin, Second Judicial District, Kenosha County.

Case Name:
Jeffrey Patera and Brighton Creek Woods Development LLC v. Mark Love

Docket/File Number:
07CV1994

Verdict:
Plaintiffs, $277,000.00

Verdict Date:
March 11, 2009

Judge:
David M. Bastianelli

Attorneys:
Plaintiffs: Timothy S. Knurr, Schoone, Leuck, Kelley, Pitts & Knurr, Racine, Wis.
Defendant: Michael Masnica, Rizzo & Dierson, Kenosha, Wis.

Trial Type:
Jury

Breakdown of Award:
$200,000.00 to plaintiffs for compensatory damages
$2,000.00 to plaintiffs for defendant's trespass
$75,000.00 to plaintiff for punitive damages

Summary of Facts:
According to the plaintiffs:

Jeffrey Patera and Brighton Creek Woods Development LLC were developing property they owned for sale. Despite repeated requests, the developers said neighbor Mark Love continued to trespass on their property in late 2006.

When potential buyers came to view the lots, Love would reportedly make disparaging comments about the property. His statements allegedly included that the property was in a flood zone, would not be conducive to a septic system and would create problems for builders.

The real estate broker for the property canceled the listing contract early, the developers claimed. They received a letter from the broker mentioning that a neighbor was making negative comments to prospective buyers. Given the neighbor's statements, the broker allegedly felt the property was “unsaleable.”

Patera and Brighton sued Love in the Kenosha County Circuit Court, claiming trespass and interference with prospective contract rights. Besides “an enormous amount of circumstantial evidence” that Love was the neighbor mentioned in the broker's letter, the plaintiffs said an eyewitness verified that the defendant was the subject neighbor.

As a result of Love's behavior, the developers claimed they lost a critical window to sell the lots, given that late 2006 marked the beginning of the real estate market's drop. While they were able to sell one of the lots at 80 percent of the listing price, and received a “low ball” offer on the others, the plaintiffs said they sustained $159,000 in damages, plus an additional $50,000 in “carrying costs” when the lots did not sell after the market dropped.

The plaintiffs requested $210,000 in compensatory damages, plus punitive damages and relief for Love's trespass.

The developers “tossed around” a settlement offer of $75,000. The defendant reportedly offered $5,000.

In March 2009 a jury empanelled before Judge David Bastianelli found Love trespassed on the plaintiffs' property and interfered with prospective sales. The jury awarded the plaintiffs $200,000 in compensatory damages, $2,000 for the defendant's trespass and $75,000 in punitive damages.

The defendant filed post-verdict motions, which are pending.

Court: Circuit Court of Wisconsin, Second Judicial District, Kenosha County.

Westlaw Citation:
2009 WL 1288211

West's Jury Verdicts - Wisconsin Reports Citation:
West’s J.V. Wis. Rep., Vol. 4, Iss. 12, p. 3 (2009)