Bharodia v. Pledger

990 S.W.2d 581, 66 Ark. App. 349, 1999 Ark. App. LEXIS 381
CourtCourt of Appeals of Arkansas
DecidedMay 26, 1999
DocketCA 98-138
StatusPublished
Cited by3 cases

This text of 990 S.W.2d 581 (Bharodia v. Pledger) is published on Counsel Stack Legal Research, covering Court of Appeals of Arkansas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Bharodia v. Pledger, 990 S.W.2d 581, 66 Ark. App. 349, 1999 Ark. App. LEXIS 381 (Ark. Ct. App. 1999).

Opinions

John Mauzy Pittman, Judge.

The appellants in this specific-performance case, Tulsi Bharodia and Amratben Patel, executed a contract whereby they agreed to purchase appellees’ house for $425,000. Various conflicts arose, and appellants attempted to withdraw from the agreement. Appellees sued for specific performance and, after a hearing, the chancellor ordered appellants to specifically perform the contract. From that decision, comes this appeal.

For reversal, appellants contend that the chancellor erred in denying their summary-judgment motion based on election of remedies; in granting specific performance where appellees had already elected a different remedy by refusing to return the earnest money; in retaining jurisdiction where appellees had an adequate remedy at law; in failing to give effect to the contractual provision requiring appellees to provide a disclosure statement; in granting specific performance where appellees were in violation of the terms of the contract; and in awarding attorneys’ fees in the exact amount of the earnest money. We find no error, and we affirm.

The transaction out of which this appeal arises began on August 3, 1994, when appellants offered to purchase appellees’ house for $425,000. Appellants extended their offer to appellees by filling in the pertinent blank spaces in a four-page form contract provided to them by their real estate agent. When appellants made their offer, they deposited $5,000 in earnest money with appellees’ real estate company. The next day appellees accepted the offer.

The parties’ contract contains a provision that requires the seller to make a timely disclosure to the buyer of the condition of the house. In pertinent part, this provision states:

Seller will provide to Buyer a disclosure about the condition of the Property which will contain information that it is true and correct to the best of the Seller’s knowledge. The disclosure will be presented to Buyer within three (3) business days of acceptance of this offer. Buyer has three (3) business days after receipt of disclosure to accept or reject said disclosure. If Seller fails to provide the disclosure in a timely manner, or if Buyer finds the disclosure unacceptable within three (3) business days after receipt, this contract may be declared null and void by the Buyer, with Buyer to receive a refund of the earnest money.

It is undisputed that appellees failed to comply with this provision of the contract when they failed to make the requisite disclosure to appellants by August 9, 1994, which was three business days after the date upon which the offer was accepted.

On August 15, 1994, appellants delivered to appellees’ real estate agent a writing entitled “Addendum To Offer and Acceptance.” In the addendum, appellant Bharodia stated that appellants wished to be released from the contract because the house had many structural defects and needed a great many repairs. Appellants attached to the addendum a report prepared by an inspector that they had hired to examine the house. Significantly, no mention of appellees’ failure to provide a disclosure statement was made in this addendum; instead, the issue was not raised until September 9, 1994, when appellants’ counsel sent appellees’ real estate company a letter requesting that appellees return to appellants their $5,000 in earnest money.

Appellees’ real estate company interpled appellants’ $5,000 in earnest money into the registry of the chancery court. In April 1995, appellees filed in chancery court a complaint requesting specific performance of the contract. In May 1995, appellants filed an answer to appellees’ complaint. In their answer, appellants pled as a defense to specific performance that appellees had failed to comply with the provision of the contract requiring them to make a written disclosure of the condition of the house within three business days of appellees’ acceptance of the offer to purchase the house.

Trial was held in April 1997. After hearing the testimony of the parties, the real estate agents involved in the transaction, and other witnesses, the chancellor took the case under advisement. On July 14, 1997, the court handed down an order granting appellees’ request for specific performance. In its order, the court found that appellees had breached the contract provision requiring them to make a written disclosure of the condition of the house within three business days of their acceptance of appellants’ offer. However, the court found that appellants waived their right to declare the contract void. The court set forth this finding in its order as follows:

[Appellants] in terminating the contract on August 15, 1994, did not list as one of their reasons the failure to receive the sellers’ disclosure statement .... The Court finds that [appellees] have the burden of proof to show that the [appellants] received the sellers’ disclosure statement. There is no signed receipt by [appellants] of receiving the disclosure statement and no corroborating evidence that [they] actually received the document. Since the burden of proof is on [appellees] to prove that [appellants] received the document, the Court finds that [appellees] failed in their burden of proof. Therefore, the Court finds that [appellants] did not receive the sellers’ disclosure statement.
[Appellants] terminated the contract with [appellees] by stating that there were alleged structural defects in the home. [Appellants] did not give as one of the reasons for termination the failure to receive the disclosure statement. Even though [appellants] had a right to terminate the contract for not receiving the disclosure statement, the Court finds [appellants] waived their right to terminate the contract using that as a reason ....

The court also entered an order awarding appellees’ counsel an attorney’s fee of $5,000.

The standards we apply when we review a chancery court’s decision are well established. Although we try chancery cases de novo on the record, we do not reverse unless we determine that the trial court’s findings of fact are clearly erroneous. Jennings v. Burford, 60 Ark. App. 27, 958 S.W.2d 12 (1997). In reviewing a chancery court’s findings of fact, we give due deference to the chancellor’s superior position to determine the credibility of witnesses and the weight to be accorded to their testimony. Id. A chancery court’s finding of fact is clearly erroneous when, although there is evidence to support the court’s decision, after looking at all the evidence we are left with a definite and firm conviction that a mistake has been committed. Bishop v. Bishop, 60 Ark. App. 164, 961 S.W.2d 770 (1998); Lowell v. Lowell, 55 Ark. App. 211, 934 S.W.2d 540 (1996). Furthermore, we do not reverse a trial court’s determination that a party breached a contract unless we conclude that the trial court’s determination was clearly erroneous. See Schueck v. Burris, 330 Ark. 780, 957 S.W.2d 702 (1997); Jocon, Inc. v. Hoover, 61 Ark. App. 10, 964 S.W.2d 213 (1998).

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First Financial Bank v. Mazzio's Corp.
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Bharodia v. Pledger
11 S.W.3d 540 (Supreme Court of Arkansas, 2000)

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Bluebook (online)
990 S.W.2d 581, 66 Ark. App. 349, 1999 Ark. App. LEXIS 381, Counsel Stack Legal Research, https://law.counselstack.com/opinion/bharodia-v-pledger-arkctapp-1999.