Irvine Brokerage Loses $6-Million Judgment

Former business associates of Irvine-based commercial real estate brokerage Sperry Van Ness won a verdict of nearly $6 million against the company for fraud, breach of fiduciary duty and breach of contract.

Raffi Krikorian and other members of a limited partnership claimed that in 1994 Sperry Van Ness fraudulently induced them to enter into agreements that called for them to invest $300,000 and four years of effort to develop an Encino office for the company as a franchise.

But Sperry Van Ness then opened competing offices four years later, the plaintiffs said.

A Los Angeles Superior Court jury awarded the plaintiffs $3.9 million for loss of business, $1.1 million to Krikorian relating to violations of his employment agreement and $600,000 in punitive damages.

Sperry Van Ness said it would appeal.

-- Roger Vincent