The Pinza Group v. Virk CA1/3

CourtCalifornia Court of Appeal
DecidedApril 9, 2025
DocketA168863
StatusUnpublished

This text of The Pinza Group v. Virk CA1/3 (The Pinza Group v. Virk CA1/3) is published on Counsel Stack Legal Research, covering California Court of Appeal primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
The Pinza Group v. Virk CA1/3, (Cal. Ct. App. 2025).

Opinion

Filed 4/9/25 The Pinza Group v. Virk CA1/3 NOT TO BE PUBLISHED IN OFFICIAL REPORTS California Rules of Court, rule 8.1115(a), prohibits courts and parties from citing or relying on opinions not certified for publication or ordered published, except as specified by rule 8.1115(b). This opinion has not been certified for publication or ordered published for purposes of rule 8.1115.

IN THE COURT OF APPEAL OF THE STATE OF CALIFORNIA

FIRST APPELLATE DISTRICT

DIVISION THREE

THE PINZA GROUP, Plaintiff and Respondent, A168863 v. GURCHARN VIRK, (Alameda County Super. Ct. No. RG20055991) Defendant and Appellant.

The Pinza Group (Pinza Group), a licensed real estate broker, filed a complaint against Gurcharn Virk alleging breach of contract in connection with listing agreements for three properties. The trial court entered judgment in Pinza Group’s favor in connection with two of the three listing agreements. On appeal, Virk contends the trial court erred in finding that Pinza Group satisfied its contractual duties, failed to adequately consider certain affirmative defenses, and awarded excess damages. We affirm the judgment. BACKGROUND Pinza Group and Virk entered into listing agreements for three of Virk’s properties: (1) 1015 University Street (University); (2) 1314 Delaware (Delaware); and (3) 1949 Milvia (Milvia). University and Milvia are mixed use commercial and residential properties, whereas Delaware is solely a residential property. The parties entered into the initial listing agreements in February 2019, with expiration dates in mid-August 2019. During this period, Pinza Group marketed the properties through online listings, including the Multiple Listing Service (MLS) and LoopNet, postcard mailings, letters, emails, and telephone calls to prospects, and open houses. However, the properties did not sell due to various problems attributed to Virk, such as maintenance issues, regulatory violations, failure to provide keys, and a lack of reliable financial information. In early August 2019, prior to expiration of the initial listing agreements, Virk emailed Steven Pinza, Pinza Group’s principal, to “ ‘cancel[ ] all my listings since they not sold and already expired.’ ” Pinza did not inform Virk that the listing agreements were still in effect; he instead responded with a demand for mediation and removed the properties from the MLS and LoopNet. When Virk subsequently learned from her mortgage broker that the listing agreements had not expired, she sought to confirm the actual expiration date with Pinza and requested the agreements remain “active.” Pinza immediately emailed the mortgage broker and stated, “Dude, what the f*ck? I didn’t ask you to get involved. You completely f*cked me here. Now I may not win at arbitration.” Pinza responded to Virk and restated his position that she “cancelled the contract” and owes Pinza Group “a full commission on all three properties.” Following numerous email exchanges between Pinza and Virk, the parties entered into a second set of listing agreements for the three properties. During negotiations for the second set of agreements, Virk requested Pinza “remove 365 days from the listings expire time” and “change

2 into 90 days.” Pinza stated he had made the change but did not do so; Virk still proceeded to sign the agreements.1 After the parties executed the second set of listing agreements, Pinza informed Virk he was arranging for new photographs and “[o]nce those are done . . . we will update our packages and go back out to market next week.” Pinza requested Virk arrange for some “last minute cleanups” at the properties and requested copies of keys for all units. Pinza explained, “we want to make it seem like you are an organized seller, so if we have all keys it will make you look better and therefore make it easier to sell the properties.” Virk responded, “[t]oo bad[.] I am not organizer person. . . . How about if you do not put in market. [J]ust sell pocket listings.” Pinza objected to her suggestion, stating “No, they are all going on the market. Even with the reductions, we are still super high.” In mid-August, the record indicates Pinza continued to try to obtain a complete set of keys. On October 29, 2019, the parties exchanged emails disagreeing about the appropriate pricing for the properties and ongoing property violations. In these email exchanges, Pinza offered to assist with resolving violations with the City of Berkeley, and Virk accused Pinza of harassing and threatening her. The record provided on appeal does not

1 The trial court’s statement of decision noted that Virk testified she

signed the agreements only because Pinza threatened litigation. However, this testimony is not contained in the appellate record. The only applicable statement arose in response to the question, “Was the Pinza Group’s failure to put the property on the multiple listing service in relation to the August listing agreement, was that motivation for you to cancel the listing agreement with them?” In response, Virk testified, “Steve pressured me in that I have buyer. You should list the property with me as soon as possible, otherwise I will sue you.” The court then sustained Pinza Group’s objection to that testimony as nonresponsive.

3 appear to contain any evidence regarding the parties’ communications between mid-August and the end of October. During this period, however, Pinza did not immediately relist the properties on the MLS or LoopNet. Pinza testified LoopNet did not allow a removed listing to be relisted for 60 days, although other testimony indicated LoopNet could waive this policy. Pinza also testified he delayed relisting with the MLS because he did not want the listings to appear “stale.” However, Pinza marketed the properties through other means, including outdoor signage, postcard mailings, and email communications. Pinza received offers for Delaware, but the sale was not finalized due to a lack of financials, lack of keys, and maintenance issues. The same problems with the properties that existed during the initial listing period continued during the second listing period. On November 1, 2019, Virk informed Pinza she was “immediately terminat[ing]” the listing agreements for all three properties due to Pinza’s failure to list them on the MLS. Pinza communicated this termination to various prospects, one of whom ultimately purchased Milvia. Pinza Group subsequently filed a complaint for breach of contract. It alleged it entered into listing agreements for the Delaware, University, and Milvia properties from August 8, 2019 to April 9, 2020, and those agreements provided for payment of a five percent commission of the listing price if, without Pinza Group’s consent, Virk withdrew the properties from the market. The complaint further alleged Virk withdrew the three properties from the market on November 1, 2019 and refused to pay the required commissions. Virk denied these allegations and raised various affirmative defenses, including “duress and undue influence” and “unclean hands.” Virk also filed

4 a cross-complaint, alleging breach of contract, breach of fiduciary duty, breach of the implied covenant of good faith and fair dealing, and negligence. Following a five-day bench trial, the court issued a statement of decision in Pinza Group’s favor. In evaluating the three listing agreements, the court concluded Pinza Group “did all or substantially all of the significant things that the contracts required it to do” as to the Milvia and University properties. It concluded that any delay in listing the Milvia and University properties on the MLS or LoopNet “was reasonable,” and credited Pinza’s testimony to find that “any failure to list was not a material breach.” Conversely, the court concluded Pinza Group’s failure to list the Delaware property on the MLS violated that listing agreement. The court also rejected Virk’s defenses.

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