First came the dream: Celestino and Rosario Gonzalez entered an escrow to buy their first home.
Then came the nightmare: The home was sold to someone else and when the couple looked for another house, prices had risen beyond their reach.
But today they are again dreaming of their first home. They've won a five-year legal battle over their attempted purchase and have a check for $290,000 from the Los Angeles real estate investor who reneged on the deal with the Gonzalezes when he found a higher bidder.
William Little, who testified in 1982 that he owned $17 million worth of property, backed out of an agreement to sell a La Puente house to the Gonzalez family for $53,000 after he found a second buyer willing to pay $55,000, according to court testimony.
The transactions occurred five years ago when housing prices were escalating rapidly. The Gonzalezes, who had saved $5,000 for a down payment, qualified financially when they offered to buy the house in December, 1979, but five months later, when they learned the house was being sold to someone else, they looked for another house and were unable to find one they could afford, Gonzalez testified.
Ordered to Pay
A Norwalk Superior Court jury in 1982 ordered Little to pay the Gonzalezes $30,000 for fraud and $200,000 in punitive damages. Little appealed, but the state Court of Appeal upheld the verdict in January. Little asked the state Supreme Court to hear the case, but it refused earlier this month.
Finally, last week a check arrived for slightly more than $290,000, representing the damage award, plus interest.
Coincidentally, it came about three weeks after the Gonzalezes received a notice to vacate the small two-bedroom La Habra apartment where they have lived for 11 years. Their landlord sold the apartment and the family must move next month.
Although it took five years, the court case broke no legal ground, attorneys for both sides agreed.
Indeed, Mitchel Ezer, who represented Little in the appeals but not in the Superior Court trial, conceded in his appellant briefs that evidence supported the trial verdict. The dispute was over the amount of money awarded, with Ezer arguing that damage done to the Gonzalezes had been exaggerated and that their attorney inflamed the jury by dwelling on her clients' poverty and Little's wealth. He said the Gonzalezes were portrayed as "the Little Match Girl and Tiny Tim."
Poor Versus Rich
It was a case of the poor versus the rich. So much so, in fact, that Gonzalez said friends told him he was foolish to take Little to court: "They said, 'Forget it. He's a rich man; you're a poor man. You'll never win."'
Little, who is in his early 40s, came to Los Angeles from Canada in 1966 and, according to his court testimony, began to buy real estate in 1972, often in low-income areas and out of foreclosure. He testified that in 10 years, he amassed 351 properties worth $17 million, netting him income of $88,000 a month.
Celestino Gonzalez, 38, came to Southern California from Durango, Mexico, in 1969 and got a job washing dishes. He was able to bring his wife, Rosario, here to join him in 1974, and since then they have lived in La Habra. They have a 15-year-old daughter and a 9-year-old son.
Gonzalez has worked steadily for a restaurant chain, where he now is a meat cutter, but the family has struggled financially.
Underwent Heart Surgery
Rosario Gonzalez underwent heart surgery in 1976. After paying off medical bills, the family saved for 2 1/2 to accumulate $5,000 for the down payment on a house.
In December, 1979, they offered to pay the full asking price of $53,000 on a 940-square-foot home in the low-income "Happy Homes" housing tract in La Puente. It was not the ideal home or neighborhood, Gonzalez said, but it was what they could afford. Little, who had acquired the house in foreclosure in 1976, accepted the offer.
But Little also accepted an offer from another buyer for $55,000 the next day, court records said. Neither buyer knew about the other and Little opened two escrows on the same property.
Ezer said Little made an honest mistake. Both buyers were, coincidentally, named Gonzalez, Ezer said, and it was only after both escrows were opened that Little became aware that his real estate agent had been talking about two different offers.
Ezer said Little should have explained the situation to both buyers, but chose instead to try to get out of one deal or the other.
Something Was 'Wrong'
Gonzalez said he was planning to move into the house in two weeks when his real estate broker told him there was "something wrong" with the deal and he should consult a lawyer.