David A. Axelrod & Associates successfully prosecuted a case of fraud and breach of fiduciary duty on behalf of Otto Wratschko, a small businessman who relied upon a real estate broker to his detriment. After a lengthy trial, David A. Axelrod & Associates procured an award in favor of Mr. Wratschko in the amount of $1,083,906, including $300,000 in punitive damages.

Mr. Wratschko, who for more 25 years had operated a successful auto body and mechanic shop, engaged the broker to assist him in purchasing a new property for his business in Chicago. The broker, however, purchased the property for himself without advising Mr. Wratschko, instead telling Mr. Wratschko that he was to pay him money every month toward the purchase of the property. When David A. Axelrod & Associates was retained, Mr. Wratschko had been evicted from the property. In addition, many of Mr. Wratschko’s business and personal belongings, which had been kept at the property, were also confiscated by the real estate broker.

Led by Mr. Axelrod, the firm argued numerous legal bases for recovery on behalf of Mr. Wratschko, including the legal claims of fraud and breach of fiduciary duty, and sought the equitable remedy of a constructive trust. Agreeing with the legal theories presented by Mr. Axelrod, the trial court ruled that the real estate broker had unlawfully obtained Mr. Wratschko’s eviction and had improperly taken his possessions. Mr. Axelrod convinced the court that the real estate broker was a fiduciary, requiring that the broker should have placed the interests of Mr. Wratschko before his own interests. Instead, the broker sought to enrich himself at Mr. Wratschko’s expense.

Ultimately, the verdict in favor of Mr. Wratschko included damages in the total amount of $783,906 to compensate Mr. Wratschko for the value of his business and personal property that was taken, the amount that he had paid to the broker, and to disgorge from the real estate broker the profit he had realized on the property. Further, Mr. Axelrod convinced the court that the conduct of the real estate broker required more than just compensatory damages for Mr. Wratschko’s lawsuit. As a result, the court awarded an additional $300,000 in punitive damages.