Cobb & Johns Secures Complete Defense Victory in High-Stakes Property-Fraud Arbitration
We write to celebrate a significant win in Lancaster v. Healy, a fast-paced and high-stakes arbitration in Northern California, where Cobb & Johns secured a full victory for the defense. Finding no evidence to support the plaintiffs’ claims, the arbitrator ordered that the plaintiffs take nothing and declared our client the prevailing party—entitling her to reimbursement of her litigation costs and attorneys’ fees.
Defendant Faced Significant Risk
Two years after selling a successful, six-unit rental property in Arcata, California, and settling into retirement, Michelle Healy was sued by the purchasers for fraud and misrepresentation based on a water-intrusion event that occurred months after the sale.
Under the parties’ sales contract, arbitration was mandatory, and the prevailing party would recover litigation costs and fees from the losing party. In other words, Ms. Healy was facing a potential seven-figure liability for wrongs she did not commit.
Strategic and Focused Defense
Cobb & Johns aggressively defended Ms. Healy. In just four months, the team prepared an entire case, from initial discovery through dispositive motions and into a five-day arbitration hearing (essentially a trial before a private judge). Along the way, Ms. Healy won key motions, including successfully disqualifying all but one of the plaintiffs’ experts, setting her on the path toward victory.
Ruling Highlights Plaintiffs’ Failures
At the hearing, the defense’s theory was clear and compelling, focusing on the truth and systematically dismantling the plaintiffs’ case. And the arbitrator agreed. In a strongly worded opinion, Arbitrator Paul Brisso held that the plaintiffs had not met their burden of proof on any one of their claims against Ms. Healy. Mr. Brisso emphasized that he had allowed the plaintiffs every opportunity to prove their case, going so far as to consider normally inadmissible evidence. Even still, he concluded, their “evidence was thin at best.” The decision absolved Ms. Healy of all liability.
A Hard-Earned and Meaningful Result
“This result is justice as work,” said attorney Alexa L. Gervasi. “Ms. Healy is kind and honest, and that triumphed over sophisticated property investors looking to shift responsibility for routine maintenance and post-sale issues onto the seller.”
“It was a hard-earned victory,” attorney Christopher S. Johns continued.“ We were up against contentious opposing counsel looking to catch us in procedural traps, which meant we had no room for missteps. And we worked up and presented this case on an exceptionally accelerated timeline. We are so proud to have had a role in taking this case to the arbitration hearing, where Ms. Healy was able to tell her story and dispel the unfounded claims against her.”
For Ms. Healy, this win means her retirement is safe and her reputation vindicated. “I am incredibly thankful for the hard work of my legal team at Cobb & Johns,” said Ms. Healy.
“Chris, Alexa, and the entire team believed in me and my case from the beginning. They fought tirelessly to defend my rights. I can now say that I know what it feels like to be truly represented.”
Cobb & Johns remains committed to protecting property rights and defending clients against unjust claims. For more information, please contact us at 512-399-3150 or visit www.cobbjohns.com.