GOVT 406
CASE QUESTIONS ANSWER TEMPLATE
MODULE #4
Warren v. Merrill, 49 Cal.Rptr.3d 122 (Cal. App. 2006)
1. The evidence showed Merrill breached her fiduciary duties toward Warren and committed fraud by
deliberately and falsely promising him she would place his name on title to the condominium if he went
along with her plan on how to structure the transaction.
2. The trial court was so alarmed by Merrill’s testimony and her apparent lack of concern about
admitting she had committed a form of fraud on the lender that the court recessed the proceedings to
permit Merrill to consult with counsel regarding her Fifth Amendment right not to incriminate herself.
The court also awarded Warren noneconomic damages in the amount of $15,000 on his causes of
action for fraud, breach of fiduciary duty, and ejectment. Merrill agreed to return all of Warren’s
personal property, and in exchange Warren agreed to pay the storage fees. The court also awarded
Warren costs and attorney’s fees.
3. If you remove your escrow account and invest the same amount of money that formerly went into
that account, you’ll not only be able to pay your property tax and homeowner’s insurance, but you may
also generate interest income. Even if the lender agrees to remove your escrow, it may still require you
to provide proof of these payments, just adding another level of paperwork on your part.
Board of Control of Eastern Michigan University v. Burgess, 206 N.W.2d 256 (Mich. 1973)
her offer several weeks before plaintiff accepted that offer, and no contract of sale was created. If
which means the seller cannot sell the land to a third party for the period of time agreed in the option
without restriction. The downside for the seller is that if the developer does not obtain planning
permission and pulls out of the option, the purchase would not go ahead.
