Thwarted Home Buyers Resort to Picket Line

Quietly carrying placards, more than a dozen families demonstrated for more than a hour Saturday in front of a sales office of a developer they say reneged on a deal to build homes for them in an Agoura Hills subdivision.

The demonstrators are among 18 families who are suing Dale Poe Development, claiming that the company broke a contract to build 46 homes in the Chateau Springs Park development so that it could capitalize on rising real estate prices in the area.

While neighbors looked on Saturday, 32 of the would-be residents, including children, marched in front of the sales office and through the subdivision, carrying signs that said, among other things: “To build or not to build, that is the question” and “Housebusters.”

The Van Nuys Superior Court lawsuit, which seeks $20 million in damages, charges the firm with breach of contract, fraud, negligent misrepresentation and conspiracy. The company had agreed to sell the planned houses, then reneged six months later, said Richard M. Rosenthal, attorney for the home buyers.

The houses, which were to range in size from 2,470 to 3,390 square feet, were being sold for $235,000 to $280,000, Rosenthal said.

Camped Out in Car

Tobi Weinstein of Canoga Park said her husband, Bruce, camped out in his car in March to be among the first to sign up for a house in the subdivision.

The 46-house tract, the fifth phase of the development, of which 454 single-family homes and condominiums have already been built, was approved by the city’s Planning Commission in April, said Paul Williams, Agoura Hills planning director.

Then, in June, prospective buyers said they received a certified letter from the development company stating that the subdivision would have to be “reconfigured” to meet city requirements for improved street access to the area. The letter stated that the original purchase agreement would be terminated, but that the reconfigured lots were available for sale at the same price.

About two months later, those who had deposited money for the houses received another certified letter that terminated the agreements. This time, they also got their deposits back.

In a letter, the developer said that “the city has imposed conditions that are unacceptable to us at this time,” and offered to sell buyers homes in the $400,000 range in another Poe subdivision.

No Viable Alternative

“To me, it was an obvious way of offering you nothing,” Tobi Weinstein said. “I can’t afford a home for that price. He really didn’t offer us any kind of viable alternative. He just said, ‘I’m not building it, that’s it. Goodby.’ ”

Poe representatives said they could not comment because of the lawsuit.

The suit asks that the development company be forced to pay $20 million in punitive damages and build the houses at the agreed-upon price, Rosenthal said.

“A lot of us gave up opportunities to buy in other neighborhoods because it was a pretty good deal,” said Steve Bonifede, one of the litigants. “Many of us checked with the sales office and had been reassured several times. Otherwise, I’m sure a lot of us would have gone and bought other homes.”

Rosenthal said the developer cited the city’s requirement for underground placement of power lines as a major stumbling block. However, he said the developer knew that underground lines have been required by the city since its incorporation in 1982.

The attorney, who says the land has appreciated an estimated $100,000 since March, claims the company terminated the agreement because of the rising land values. Rosenthal and some litigants maintain that the developer still plans to build the houses, but sell them for a higher price. They noted that curbs and sidewalks were built in the subdivision.

But city officials said no building permits had been filed.