Administrative Law Topics: Civil Judgments

Disciplinary action based on civil judgments

Court Overturns California Department of Real Estate Suspension of Broker’s License Based on Fraud Judgment

The California Department of Real Estate (Real Estate Commissioner) suspended the real estate broker’s license of the Grubb Company based on a civil fraud judgment arising from a dispute between the buyer and seller of a residence. 

Business and Professions Code section 10177.5 authorizes discipline based on a civil judgment for misrepresentation, fraud or deceit.  The Department of Real Estate suspended Grubb’s real estate broker’s license based solely on the court record showing the judgment.  Grubb appealed.