Jury awards developer $2.3 million

A developer who lost out on a chance to buy 138 acres in Post Falls was awarded a $2.3 million verdict this week by a Kootenai County jury.

According to a 2003 lawsuit, John DeVries had an option to buy the former farmland from the estate of Mary Beck. But his real estate agent, Joe Dobson of Coldwell Banker/Schneidmiller Realty, found another buyer for the parcel, the lawsuit said.

Dobson became a 10 percent owner in the 138 acres. He and the other developer later resold the land, earning more than $1 million on the sale, according to court documents.

On Monday, the jury found Dobson and Coldwell Banker/Schneidmiller Realty guilty of breach of duties owed to a client, and awarded damages to DeVries.

Dobson and Schneidmiller Realty plan to file an appeal within the next several weeks, said their attorney, Doug Marfice.

“They’re very disappointed in the verdict, and do not believe that the verdict accurately reflects the facts presented at trial,” he said.

The real estate dispute arose after DeVries and his wife, Siony, bought 150 acres of land on the Rathdrum Prairie in 1997. The couple wanted to subdivide the land and annex it to the city of Post Falls, but the land wasn’t contiguous to the city’s boundaries. For the annexation take place, the Beck property had to be included.

DeVries told Donald Beck that he would pay for all of the costs associated with the annexation effort, if Beck would grant him right of first refusal on the 138 acres in his mother’s estate, according to the suit. At the time, Beck planned to farm the land for several more years.

Both parcels were annexed to Post Falls in 1999. In the meantime, Dobson was contacted by another local developer, Jim Watson, who was looking for land to buy. Dobson showed him the Beck property, the suit said. Watson offered to purchase the Beck property for $10,000 per acre, according to court documents.

About the same time, DeVries contacted Dobson with the idea of making an offer on the Beck property, the suit said. When Dobson told DeVries that another offer was pending, DeVries told Dobson to immediately contact Beck, and to offer up to $13,000 or more per acre for the land, according to court documents.

The parties disagree on the timing of the conversations, how much Dobson disclosed to DeVries, and whether Dobson ever presented DeVries’ offer to Beck.

After Watson bought the land, he invited DeVries to a meeting to discuss electrical service to the parcels, and other issues affecting them as neighboring developers, the suit said. In court documents, DeVries said he was shocked to see Dodson at the meeting, and learn that he was a partner of Watson’s.

The land was later resold for $19,000 per acre, the suit said.