Dallas Commercial Litigation Team Secures Summary Judgment Dismissal of Fraudulent Misrepresentation Claims on Behalf of Commercial Real Estate Broker

November 2023

Gordon Rees Scully Mansukhani Partner Kirstie Simmerman and Senior Counsel Brent Buyse obtained a complete dismissal of all claims against the firm’s clients, a commercial real estate broker and its agents.

The plaintiff, a company owned and operated by a California-based law firm, sued the owner of a commercial property for sale in the Historic District of Downtown Fort Worth, Texas, as well as its broker, claiming the parties engaged in fraudulent nondisclosure, statutory fraud, and fraudulent misrepresentation as to the condition of the property. The plaintiff originally attempted to purchase the building through negotiations with the brokers but ultimately refused to move forward with the purchase based on unanswered questions regarding the condition of the property. Shortly thereafter, the plaintiff purchased the building through an online auction. Almost immediately after placing the winning bid, and in an attempt to negotiate down the amount offered at auction, the plaintiff alleged that the defendants engaged in knowing misrepresentations regarding various elements of the building and demanded a reduction in the final purchase price.

The hotly-contested case culminated in the GRSM team filing a robust motion for summary judgment, which the district court granted. The Tarrant County District Court agreed with the arguments put forth by the GRSM team that the plaintiff lacked any evidence of a knowing misrepresentation. The court further agreed that even if there was such evidence, the plaintiff could not have justifiably relied on any perceived misrepresentations since there were sufficient “red flags” that put the plaintiff on notice as to the condition of the building.