CONTACTS
SUBJECTS
Jury Duty
0503 -
0503 - ..
0504 - Summary/Objective
0505 -
050501 - Follow up ref SDS 5 0000, ref SDS 4 0000.
050502 -
050503 -
050504 -
050506 - ..
0506 -
0507 -
0508 - Administration
050901 - ..
050902 - Arrived at Court and Signed In
050903 -
050904 - Follow up ref SDS 5 0482, ref SDS 4 0482.
050905 -
050906 - Juror ID: 200310516
050908 - ..
050909 - Juror Group: 213
050910 -
050911 -
050913 - ..
050914 - Plaintiff's 4th Witness
050915 -
050916 - Follow up ref SDS 5 4694.
050917 -
050918 - John Samson.
050920 - ..
050921 - Direct continued from yesterday...
050923 - ..
050924 - Exhibit 25 - Corrected Damage Calculation
050926 - ..
050927 - This is changed to reflect the change of annual rent increses in
050928 - March, rather than September, which was shown in the calculation
050929 - submitted yesterday.
050931 - ..
050932 - Calculation was too much by $132 until 2005 or something like that.
050933 -
050934 - $772 until 2010
050936 - ..
050937 - He estimated CPI in out years.
050939 - ..
050940 - He reviewed historical inflation rates and projected some kind of
050941 - average.
050943 - ..
050944 - He seems to have reduced CPI for several years, then held a steady
050945 - rate.
050947 - ..
050948 - Witness says nobody knows what the CPI will be in 5 or 10 years.
050950 - ..
050951 - Witness has used this method in prior matters, and has testified in
050952 - court using this method.
050954 - ..
050955 - Defects are that rate of inflation has to be estimated.
050957 - ..
050958 - Estimated feature is market rate of rent.
050960 - ..
050961 - Hypothetical - landlord waives rent for 3 - 6 months prior to sale of
050962 - property. Witness says this fact does not change calculation of
050963 - damages.
050964 -
050966 - ..
050967 - Plaintiff direct examination ends
050968 -
050969 -
0510 -
0511 -
0512 - 0936
0513 -
051302 - ..
051303 - Court questions witness.
051305 - ..
051306 - Cross examination
051308 - ..
051309 - He cannot give names of cases where he has previously testified.
051311 - ..
051312 - They began in mid-80s, and continued the past 15 years.
051314 - ..
051315 - Last time he testified on this issue. He does not remember. He has
051316 - not been to court on this issue in 1 - 2 years. He cannot recall the
051317 - name of the case.
051319 - ..
051320 - He has been retained by Bravo's office about 4 times the past 2
051321 - years.
051323 - ..
051324 - He met Bravo about 10 - 12 years ago.
051326 - ..
051327 - Next case was about 2 years ago, and has 3 or 4 cases with Bravo,
051328 - none of which went to court.
051330 - ..
051331 - Counsel asks what is an MAI.
051333 - ..
051334 - Witnesss says it means member of American Institute of Appraisers.
051335 - He is not a member. He has taken courses and passed the courses.
051337 - ..
051338 - Last time he took courses in appraiser work is about 15 years ago.
051339 - He has taught courses more recently.
051341 - ..
051342 - Exhibit #25 damage calculation.
051344 - ..
051345 - Yesterday he was confident in his prior calculations.
051347 - ..
051348 - He feels might find an error in corrected figures today.
051350 - ..
051351 - He used a spreadsheet program to make calculation.
051353 - ..
051354 - He used Excel.
051356 - ..
051357 - Witness discussed with plaintiff description of apartment, size,
051358 - condition, hardwood floors, type of closets, view, etc.
051360 - ..
051361 - Witness asked plaintiff about places where she moved after her
051362 - eviction.
051364 - ..
051365 - He learned from Bravo there was a waiver of rent for plaintiff.
051367 - ..
051368 - He did not estimate market rate of apartment #4 for 950901, when
051369 - plaintiff took occupancy.
051371 - ..
051372 - Difficult to get adjustment in rental rate to market rates, from
051373 - petition from rent control board.
051374 -
051376 - ..
051377 - Cross examination completed.
051378 -
051379 -
0514 -
0515 -
0516 - 1050
0517 -
051702 - ..
051703 - Re-direct examination.
051705 - ..
051706 - Estimated value of building, without an inspection, and based on
051707 - building rental rates, is somewhere from $2.1M - $2.2M
051709 - ..
051710 - He has not encountered situations where an owner evicts 4 tenants for
051711 - an owner and 3 children. He knows of 4 owners buying a building and
051712 - issuing 4 evictions.
051713 -
051714 -
051716 - ..
0518 -
0519 -
0520 - 1110
0521 -
052101 - Questions for Mr. Samson by Alternate Juror
052102 -
052103 - Under the judge's notice that jurors can submit questions for
052104 - witnesses, the judge asked the witness, Mr Samson, if it is unusual in
052105 - his practice for a landlord to evict 4 tenants?
052106 -
052107 - Mr Samson indicated it is unusual for this to occur.
052108 -
052110 - ..
052111 - The judge read the juror's summary of prior testimony...
052113 - ..
052114 - Mr Samson testified yesterday on 000420, that damages can be
052115 - calculated based on an assumed market value, that would continue to
052116 - increase, year to year, for plaintiff's former apartment #4 at the
052117 - Chestnut property purchased by defendant. ref SDS 5 1850
052119 - ..
052120 - The judge then read the juror's questions...
052121 -
052122 - 1. Does the market rental price of approximately $1,800 per month,
052123 - change if maintenance were not performed on the building, in
052124 - light of testimony that, for example, dry rot and termites were
052125 - discovered that would have led to structural damage?
052127 - ..
052128 - If the property becomes run down, would this reduce the ability
052129 - to get renters at market rates, even in a nice area like Marina
052130 - Green?
052131 -
052132 - He says yes.
052134 - ..
052135 - Based on Mr. Samson's experience as a property manager for 30
052136 - years, how would a rental rate of $800 per month adjusted by
052137 - annual allowable increases, impact the ability to keep up with
052138 - escalating costs of repairs on an old building?
052139 -
052140 - Witness says...
052142 - ..
052143 - Depends on how long the owner had the building.
052145 - ..
052146 - Building needs turn-over in order to increase rental rate to
052147 - generate cash flow for maintaining the building.
052149 - ..
052150 - Would this cause continued deterioration of the building
052151 - leading to a slum lord effect, where the market rate for
052152 - deteriorated living conditions might fall into alignment with
052153 - rental rates controlled by city ordinances?
052154 -
052155 - He said yes.
052157 - ..
052158 - Owner has to fix the buildings; tenants can complain to
052159 - rent control board or other agency to force improvements.
052161 - ..
052162 - He indicated that serious cash flow problems can cause
052163 - buildings to deterioriate to slum condtion.
052165 - ..
052166 - 2. Would the periods of occupancy of 15 and 20 years for
052167 - determining damages require adjustment based on deterioration
052168 - of building, per question 1, as a result of inadequate
052169 - maintenance caused by below market rental rates?
052170 -
052171 - He doesn't know.
052173 - ..
052174 - He said it would not impact the rental rate.
052176 - ..
052177 - He said damages would not be effected.
052179 - ..
052180 - 3. Would the period of occupancy of 15 and 20 years require
052181 - adjustment based on plaintiff's rental history?
052182 -
052183 - He said rental history might indicate estimate of future
052184 - rental tenure.
052186 - ..
052187 - How might it be factored into the equation used by Mr. Samson?
052188 -
052189 - Witness did not answer this question.
052191 - ..
052192 - 4. Are there statstics showing the average rate people 31 years
052193 - old change apartments over a 15 - 20 year period?
052194 -
052195 - He knows of no statistics. He has had tenants stay 20
052196 - years.
052198 - ..
052199 - 5. If plaintiff were successful in her joint bid with her brother
052200 - and father to purchase the building at issue, instead of the
052201 - defendant, how would she have benefited relative to the damages
052202 - being claimed according to Mr. Samson's calculations.
052203 -
052204 - Answer not clear.
052206 - ..
052207 - 6. Would plaintiff have been permitted to raise rents, or would
052208 - she have been required to hold the rents at the $800 level, and
052209 - if so, would such a transaction have been financially viable?
052210 -
052211 - Value of transaction would have been impacted by inability
052212 - to raise rents.
052213 -
052214 -
052215 -
052217 - ..
052218 - Plaintiff re-direct
052220 - ..
052221 - There are occassions where a repair and upgrade is in order.
052223 - ..
052224 - You would put in a new faucet to mix hot and cold water, which is what
052225 - was done here.
052227 - ..
052228 - He said the prior cabinets were adequate to sustain market rents.
052230 - ..
052231 - If boiler is no longer functioning, City will require improvement.
052232 -
052234 - ..
052235 - Witness still testifying on re-direct
052236 -
052237 -
052238 -
052239 -
052240 -
052241 -
0523 -