Alliance Financial Services, Inc. v. Cummings

526 So. 2d 324, 1988 WL 46268
CourtLouisiana Court of Appeal
DecidedMay 12, 1988
DocketCA-9024, CA-9025
StatusPublished
Cited by9 cases

This text of 526 So. 2d 324 (Alliance Financial Services, Inc. v. Cummings) is published on Counsel Stack Legal Research, covering Louisiana Court of Appeal primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Alliance Financial Services, Inc. v. Cummings, 526 So. 2d 324, 1988 WL 46268 (La. Ct. App. 1988).

Opinion

526 So.2d 324 (1988)

ALLIANCE FINANCIAL SERVICES, INC.
v.
John J. CUMMINGS, III, et al.
Robert F. TALBOT, d/b/a Robert F. Talbot and Associates
v.
ALLIANCE FINANCIAL SERVICES, INC.

Nos. CA-9024, CA-9025.

Court of Appeal of Louisiana, Fourth Circuit.

May 12, 1988.

*325 Ryan & Willeford, James F. Willeford, John H. Ryan, Gordon P. Serou, Jr., New Orleans, for appellant and cross-appellee.

Stephen B. Murray, New Orleans, for appellees and cross-appellant.

Before GULOTTA, C.J., and KLEES and WILLIAMS, JJ.

GULOTTA, Chief Judge.

In this action to recover earnest money deposited under an agreement to purchase real estate, the plaintiff-purchaser appeals from a judgment dismissing its suit and permitting the defendant-sellers to retain the $100,000.00 deposit based on a finding that plaintiff failed to make a good faith attempt to satisfy a suspensive condition to the act of sale. In a consolidated case, the real estate broker involved in the transaction appeals from the trial court's denial of his claim for an $87,000.00 commission he would have received if the sale had been consummated. In answer to the purchaser's appeal, the defendant-sellers seek an increase in attorney's fees incurred on appeal. We affirm the judgment dismissing the purchaser and broker's claims, but award the sellers an additional $1,500.00 in attorney's fees for successfully defending against the purchaser's appeal.

BACKGROUND

On May 21, 1984, Alliance Financial Services, Inc. (Alliance) entered into an "Agreement to Purchase" the property at 700 S. Peters Street in New Orleans owned by John J. Cummings, III, Gregory F. Gambel, and Elizabeth M. Gambel. The agreement stated a purchase price of $4,300,000.00 cash and contained the following suspensive condition:

"The sale is conditioned on approvals from all necessary authorities on the addition of 2 floors to the existing building. The purchaser's [sic] have up to 90 days after acceptance to obtain these approvals."

The agreement further provided that the purchaser was obligated to deposit $100,000.00 with the seller immediately, and that if the purchaser failed to comply with the agreement within the time specified, "... the seller shall have the right to declare the deposit, ipso facto, forfeited, without formality beyond tender of title to purchaser, or the seller may demand specific performance."

Because Alliance wanted to alter the architecture of this building located in a historic area of New Orleans, it was required to obtain the approval of the modifications from the Central Business District Historic District Landmarks Commission (the Commission). Before the agreement to purchase was signed, the real estate agent, Robert F. Talbot, informed Alliance's president *326 that the Commission had previously approved a conceptual addition of two floors to the building proposed by Pio Lyons, an architect for another developer who had earlier contemplated purchasing the building. Talbot sent Alliance a copy of the Commission's February 15, 1984 letter approving Lyons's proposal, toured the building with Alliance's architect, Freddie Boothe, and gave him a design drawing by Lyons. According to Boothe, he used this drawing as a "starting point" for his own design.

Two or three days prior to the August 19, 1984 expiration of the 90 day period for obtaining approval from the authorities, Boothe presented to the Commission a three dimensional model of his proposed alterations to the building. The deputy director of the Commission's staff expressed doubt that it would be approved, however, and produced from staff files a design drawing by Lyons that the Commission had conceptually approved earlier in the year. According to Boothe, at this point he first learned of the prior approval and realized that he had built his model from a different Lyons sketch. Because he felt that it was highly unlikely that the Commission would approve his design in the next several days, and because insufficient time remained to redesign and resubmit his project, Boothe told Alliance that the Commission staff had rejected his design proposal.

On August 17, 1984, Alliance's attorney advised the sellers' attorney that Boothe had been unable to obtain the approval of the proper authorities for additional floors to the building, and demanded that its $100,000 deposit be returned. When the sellers refused to return the earnest money deposit, Alliance filed the instant suit. In a separate action, the real estate agent, Talbot, filed suit against Alliance for his broker's commission.

These consolidated matters were tried before a commissioner on stipulated exhibits and depositions. In written reasons, the commissioner concluded that in May, 1984, before the agreement to purchase was signed, Alliance had known that Pio Lyons had obtained approval from the Commission to add two floors on the building, and Alliance therefore, "... had more than enough time in which to file for and obtain approval from HDLC on final drawings for the addition." The commissioner further noted that Alliance had failed to show a good faith attempt to fulfill the suspensive condition since its architect Boothe had only informally contacted the Commission three days before the expiration of the time limit and never made a necessary formal application.

Concerning Talbot's claim for his real estate commission, the commissioner concluded that the agreement to purchase provided that the agent's commission was earned only at the consummation of the act of sale. According to the commissioner, since there was no act of sale in this case, Talbot's commission was not due.

In accordance with the commissioner's recommendations, the trial judge rendered judgment on December 12, 1986, dismissing Alliance's suit against the sellers, and further dismissing Talbot's suit against Alliance. In a separate judgment of May 20, 1987, the trial judge awarded $16,747.50 in attorney's fees to the sellers.

From the judgment dismissing their claims, both Talbot and Alliance have appealed. In answer to Alliance's appeal, the sellers seek additional attorney's fees.

ALLIANCE'S APPEAL

Although Alliance has raised five assignments of error, the thrust of its appeal is essentially threefold: 1) that the 90 day period to satisfy the suspensive condition to the act of sale began not from the May 21, 1984 signing of the agreement to purchase, but rather from the date merchantable title to the property was accepted on August 1, 1984; 2) that Alliance's architect acted in good faith in attempting to fulfill the suspensive condition in this time period; and 3) that the sellers failed to tender title to Alliance as a prerequisite to declaring the earnest money deposit forfeited.

At the outset, we note that even though the evidence consisted entirely of *327 depositions and stipulated documentary exhibits, the trial court's findings are still entitled to deference on appeal. In the absence of manifest error, this court is not permitted to substitute its own factual findings for those of the trial court. Virgil v. American Guar. & Liability Ins., 507 So. 2d 825 (La.1987).

Inception of the 90 Day Period

The agreement to purchase provides that Alliance has up to "90 days after acceptance" to obtain approval from the necessary authorities for the addition of two floors to the existing building.

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Cite This Page — Counsel Stack

Bluebook (online)
526 So. 2d 324, 1988 WL 46268, Counsel Stack Legal Research, https://law.counselstack.com/opinion/alliance-financial-services-inc-v-cummings-lactapp-1988.