Newport Real Estate Broker Awarded $2.8 Million in Suit Against Pacific Lighting

A jury has awarded a Newport Beach real estate broker $2.8 million in his lawsuit against Los Angeles-based Pacific Lighting Corp. and two subsidiaries that he accused of reneging on a real estate deal.

The jury awarded Malcolm Waitt and the Waitt Co. $773,000 in brokerage fees and interest and $2 million in punitive damages.

Waitt agreed in 1983 with one of the natural gas utility’s land development subsidiaries, Fredricks Development Corp., to look for possible land development projects in San Diego County.

Waitt put Fredricks in touch with Home Capital Corp. and Humboldt Financial Services Corp., both subsidiaries of San Diego’s Home Federal Savings & Loan Assn.

The two subsidiaries were looking for a partner to develop a residential, office and retail project called Rancho Carmel in northern San Diego County.

But another Pacific Lighting subsidiary, Dunn Properties Corp., had already approached Home Federal about Rancho Carmel.

Dunn Properties, according to Waitt’s court complaint, then urged its sister subsidiary not to pay Waitt’s brokerage fee when the deal was completed for $42.5 million.

Waitt sued, and the case dragged on until Friday, when a Superior Court jury found in favor of the real estate broker, who now divides his time between Orange County and Atlanta. Waitt would not comment Monday.

Home Capital and Humboldt were excused as defendants by the judge, but Pacific Lighting and its two subsidiaries were ordered to pay Waitt $773,000 in brokerage fees and interest by the jury. In addition, Pacific Lighting and Dunn Properties each must pay $800,000 in punitive damages, and Fredricks must pay $400,000.

The utility had no comment on the case, but a spokesman said it had sold its land development subsidiaries several months ago.

A lawyer for Pacific Lighting said the company was considering several motions to challenge the jury award.