Anest v. Bailey

556 N.E.2d 280, 198 Ill. App. 3d 740, 144 Ill. Dec. 813, 1990 Ill. App. LEXIS 853
CourtAppellate Court of Illinois
DecidedJune 12, 1990
Docket2-89-0776
StatusPublished
Cited by10 cases

This text of 556 N.E.2d 280 (Anest v. Bailey) is published on Counsel Stack Legal Research, covering Appellate Court of Illinois primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Anest v. Bailey, 556 N.E.2d 280, 198 Ill. App. 3d 740, 144 Ill. Dec. 813, 1990 Ill. App. LEXIS 853 (Ill. Ct. App. 1990).

Opinions

JUSTICE WOOD'WARD

delivered the opinion of the court:

Plaintiffs, Peter and Thalia Anest, appeal from the trial court’s denial of their motion to reconsider the trial court’s earlier order granting summary judgment for defendant, Richard Bailey. On appeal, plaintiffs contend that their failure to timely deposit additional earnest money with defendant did not constitute a material breach of the parties’ real estate sales agreement and did not operate to excuse defendant’s specific performance under the agreement. Plaintiffs further contend that it may be reasonably inferred from the evidence that defendant waived the agreement’s “time is of the essence” provision.

The record on appeal establishes the following undisputed facts. The parties agreed that plaintiffs would purchase 208 acres of land located in Lake County from defendant for $5,400 per acre. Plaintiffs included these and other terms in a preprinted form entitled “Contract to Purchase Real Estate.” The contract, dated October 31, 1988, in its upper right-hand corner, provided the following clause pertaining to plaintiffs’ deposit:

“The earnest money submitted herewith is $10,000.00 in the form of (cash) (check). Earnest money to be increased to 5% of the purchase price within 5 days after the date of acceptance, shall be held in escrow by R Bailey ***. Said initial earnest money shall be returned and this contract shall be void if not accepted on or before Nov. 10, 1988.” (The underlining indicates completed blanks in the preprinted form or the parties’ alteration of a preprinted term.)

Paragraph seven of the contract provided that the closing would take place “within 60 days of contract acceptance.” Plaintiff Peter Anest (Anest) and defendant signed the contract in the spaces provided for the buyer’s and seller’s signatures at the bottom of the page; however, defendant failed to fill in the blank provided for the date of his acceptance and did not otherwise date his signature. The reverse side of the preprinted contract form contained 14 additional preprinted terms, including paragraph (I)(5), which stated, “[t]ime is of the essence of this contract.”

Although plaintiffs apparently submitted their initial $10,000 deposit to defendant at the same time Anest executed the contract, defendant did not receive the additional deposit of $50,000 until sometime after November 22, 1988. On November 28, 1988, defendant returned plaintiffs’ additional deposit and informed them that he refused to proceed with the sale. Six weeks later plaintiffs filed their complaint in the instant cause seeking defendant’s specific performance.

In their complaint, plaintiffs alleged that the parties entered into the real estate contract on or about November 10, 1988, and that they tendered the additional deposit to defendant on or about November 22, 1988. In his answer, defendant claimed insufficient knowledge with regard to the first date and denied the second date. He did admit, however, that he received plaintiffs’ check on November 25, 1988.

Defendant filed a motion for summary judgment along with his answer and a counterclaim to quiet title. In his motion, defendant argued that plaintiffs were not entitled to specific performance because they had failed to comply with the contract’s terms by failing to submit their additional earnest money within five days of defendant’s acceptance and time was of the essence of the contract. Defendant alleged that the parties had entered into the contract on November 8, 1988, thus requiring plaintiffs’ additional earnest money to be received by him by November 13, 1988. Defendant’s affidavit in support of his motion for summary judgment stated that Anest called him on November 14, 1988, and told him that plaintiffs would not comply with the contractual terms and they would not deposit the required additional earnest money. Defendant further stated that Anest requested the preparation of a new contract which defendant claimed he rejected.

Anest’s counteraffidavit alleged that he had a telephone conversation with defendant “within five days of the receipt of the contract,” at which time Anest told defendant that he would prefer to substitute defendant’s attorney for defendant as the escrow agent. Anest alleged that defendant gave him his attorney’s name and did not voice any objections to the proposed change. Anest further alleged that he tried to call defendant’s attorney, Gabriel Barrafato, a number of times but never spoke to him, and attorney Barrafato never returned his calls. Anest then sent the additional earnest money directly to defendant on November 22, 1988. Anest claimed that defendant never made any demands on plaintiffs for the balance of the earnest money. Further, Anest denied ever telling defendant that he would not comply with the contract or that he ever refused to pay the additional deposit. Anest also denied that he ever requested the preparation of a new contract.

Gabriel Barrafato, defendant’s attorney, also prepared an affidavit which defendant filed in support of his motion for summary judgment. Attorney Barrafato alleged that he spoke with Anest on November 18, 1988, at which time Anest told Barrafato that he wanted to change the contract and to deposit the additional earnest money with Barrafato instead of with defendant. Barrafato alleged that he informed Anest that he lacked the authority to change the contract or to accept plaintiffs’ money on behalf of defendant.

In a supplemental memorandum, defendant alleged that the pleadings established certain uncontroverted facts, including the fact that the parties had entered into the real estate contract on November 7, 1988. Defendant further alleged that Anest’s affidavit was a “6th paragraph Affidavit,” which consisted only of legal conclusions or inadmissible factual statements asserted without a proper foundation. Defendant argued that Anest’s affidavit failed to demonstrate that Anest, the affiant, had personal knowledge of the facts stated therein and would be able to testify to such statements.

The parties did not submit any additional evidence or testimony. On the basis of the pleadings and the affidavit, the trial court granted defendant’s motion and entered summary judgment in favor of defendant. Plaintiffs timely sought reconsideration of the order which the trial court denied. The court did, however, clarify its earlier order and stated that it had entered summary judgment for the defendant based on the following reasons:

“(a) Plaintiff admitted that he was in default *** and that he was two weeks late in depositing additional earnest money; (b) the affidavit attached to plaintiff’s response to the Motion for Summary Judgment does not raise a genuine issue of material fact as to any modification or waiver of contract provision or any estoppel. ***; (c) the contract term requiring additional earnest money by a date certain was not complied with and the time of the essence clause made that term an essential contract term; (d) there was no request in the complaint for return of earnest money.”

Plaintiffs’ timely appeal ensued.

The sole issue presented on appeal is whether the trial court erred in concluding that defendant was entitled to judgment as a matter of law due to plaintiffs’ tardy tender of their additional earnest money and the contractual provision stating time was of the essence of the contract.

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Anest v. Bailey
556 N.E.2d 280 (Appellate Court of Illinois, 1990)

Cite This Page — Counsel Stack

Bluebook (online)
556 N.E.2d 280, 198 Ill. App. 3d 740, 144 Ill. Dec. 813, 1990 Ill. App. LEXIS 853, Counsel Stack Legal Research, https://law.counselstack.com/opinion/anest-v-bailey-illappct-1990.