Birdsong v. Bydalek

953 S.W.2d 103, 1997 Mo. App. LEXIS 1512, 1997 WL 488920
CourtMissouri Court of Appeals
DecidedAugust 22, 1997
Docket21369, 21376 and 21390
StatusPublished
Cited by38 cases

This text of 953 S.W.2d 103 (Birdsong v. Bydalek) is published on Counsel Stack Legal Research, covering Missouri Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Birdsong v. Bydalek, 953 S.W.2d 103, 1997 Mo. App. LEXIS 1512, 1997 WL 488920 (Mo. Ct. App. 1997).

Opinion

*107 SHRUM, Judge.

This case is about three tracts of land and some contracts pertaining to them. There are nine litigants, all of whom appeal. On April 16, 1993, HCH Ozark Investors, Inc. (HCH) and Bobbi Bydalek (Bydalek) signed a real estate purchase agreement. This document set forth the terms by which Bydalek was to purchase two tracts of land (29.03 acres and 3.84 acres) at Branson, Missouri, for $2,250,000. An abridged copy containing provisions pertinent to these appeals is attached to this opinion as “Document I.”

Another tract, Lot 6 that adjoined the 29.03 acres and the 3.84 acres, was deemed critical to the development of this land. Around May 10, 1993, counsel for HCH notified counsel for Bydalek that HCH was negotiating to buy Lot 6. Counsel thereafter commenced drafting an agreement whereby HCH would sell Lot 6 to Bydalek.

On May 10, 1993, Bydalek contacted Roy Birdsong (Birdsong). According to Birdsong, Bydalek “was looking for potential investors to get involved” in the transactions described above. Birdsong understood By-dalek needed $100,000 for “her next payment” which was “due pretty quick.”

On May 12,1993, HCH assigned the Byda-lek/Seller contracts to Branson Commercial Property Investors Joint Venture (BCPI). BCPI is a joint venture consisting of HCH, Vacation World, Inc. (Vacation World), and Dwight Sprague (Sprague).

Meanwhile, after Bydalek’s visit, Birdsong informed Collyer Kelling (Kelling) about his conversation with Bydalek. Birdsong scheduled a meeting for 5:00 p.m., Thursday, May 13,1993, at his office. Four people attended: Birdsong, Bydalek, Kelling and lawyer Ralph Hunt (Hunt) (at Kelling’s request). During the meeting, Bydalek disclosed a $100,000 payment “was due the next day.” The quartet discussed terms under which Birdsong and Kelling would participate in the project, including supplying the $100,000 for the upcoming payment.

The next day, May 14, the quartet met again at the office of Bydalek’s lawyer, Larry Bratvold (Bratvold). Further negotiations resulted in a document titled Assignment of Real Estate Purchase Agreement and Agreement for Joint Venture. Bydalek, Birdsong and Kelling signed it that date. An abridged copy containing the provisions pertinent to these appeals is attached to this opinion as “Document II.” That same day, Birdsong and Kelling arranged to obtain $50,000 each from State Bank of Southwest Missouri for the $100,000 payment.

On Sunday, May 16, 1993, Birdsong, Kell-ing and Bydalek met in Branson. Bydalek agreed to obtain an appraisal of the property. She also agreed to call a realtor, Jan James (James). Bydalek explained at trial, “[T]he object of contacting Jan James was to help with the financing because she had someone that was going to put in a mall, and if we could get up the appraisal high enough and the listing agreement high enough, that would help with the financing.” Although James sent a proposed listing agreement to Bydalek on May 19, it was never signed by Bydalek.

By May 19 Bydalek had signed Addendum to Real Estate Purchase Agreement by which she agreed to buy the adjoining Lot 6 for $375,000. The Addendum was also signed by Santo Catanese on behalf of HCH, and by Catanese and Daniel C. Ruda (Ruda) on behalf of BCPI.

Bydalek contacted Swan Evaluation Group, a real estate appraisal firm, and scheduled a meeting with Hayden Harrison of that firm for May 19. The meeting with appraiser Harrison took place as scheduled. Bydalek asked Harrison to appraise the 29.03 acres and Lot 6. She told him the 3.84 acres were also “under contract,” but were not to be appraised. Additionally, she cautioned him “not to speak to anybody about the appraisal,” particularly Birdsong and Kelling.

On May 24, 1993, Bydalek sent Birdsong and Kelling a letter stating that all parties seemed “to be uneasy and uncomfortable” with each other and suggested “there should be no deal.” She declared she would try to get financing on her own financial strength and would pay Birdsong and Kelling back $150,000 at closing.

As of June 11, an additional $50,000 earnest money payment was due under the By- *108 dalels/Seller contracts (see Document I). Faced with this deadline, Birdsong and Kell-ing, together with Bydalek, signed an agreement. This agreement declared that, despite the parties’ conflicting views about the viability of the Bydalek/Plaintiff contract (see Document II), each was putting in another $16,-666 so that the June 11 payment could be met. That same day, Birdsong wrote a $16,-666 check, Kelling wrote a $16,666 check, and Bydalek wrote a $16,668 check to pay the amount due.

Bydalek signed two other documents on June 11. Both concerned deals she had made with BCPI. One document was an “escrow agreement” that directed the escrow agent to release all earnest money to BCPI before closing. Such release was to occur when the escrow agent received warranty deeds signed by all BCPI parties conveying the subject property to Bydalek. Exactly when and why Bydalek and BCPI first discussed this agreement was unclear from the record. The other deal between Bydalek and BCPI on June 11, 1993, was an “extension agreement.” It provided that Bydalek could extend the date for closing to August 9, 1993, by paying an extra $100,000 for the property. Under this agreement the extra $100,000 had to be paid by July 9, 1993.

Bydalek insisted at trial that the escrow deal was negotiated before the extension agreement, that the two contracts were not connected, and the fact that both were signed the same date was merely a coincidence. Bydalek admitted, however, that she told neither Birdsong nor Kelling about either of these agreements. However, Bratvold sent details about the escrow agreement to Hunt on May 28, 1993. In that communication to Hunt, Bratvold stated: “If you have some input for me on it, please fax or call.” Brat-vold did not recall whether he got “input” or objection from Hunt about the proposed escrow agreement. Hunt testified that he told Bratvold that he saw no basis for early release of escrow funds, yet there is no evidence that Hunt ever instructed Bratvold that Bydalek should not agree to these terms.

As reported earlier, Birdsong and Kelling borrowed $100,000, in the aggregate, from State Bank of Southwest Missouri, to make the initial payment required of them under the Bydalek/Plaintiff contract. In arranging that loan, Birdsong informed Roger Terrill, senior vice-president of State Bank, about the project with Bydalek and asked about obtaining additional financing for it. Terrill informed Birdsong that the bank would require “two years tax returns, current financial statements and an overall scope of what the project was going to be_” Such documentation would be required “on all the principals involved.” On June 23, 1993, Terrill sent Birdsong a letter reminding him of the documentation required by the bank to consider financing the project. By that time, lawyer Andy Dalton had replaced Bratvold as counsel for Bydalek.

The next day (June 24), Hunt informed Dalton that Birdsong and Kelling were ready to “do the financing,” but must have the appraisal, financial statement, and tax returns from Bydalek.

The Swan Evaluation Group completed the appraisal of the 29.03 acres and Lot 6 about June 24, 1993. A copy of the appraisal was delivered to Dalton on June 28.

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Cite This Page — Counsel Stack

Bluebook (online)
953 S.W.2d 103, 1997 Mo. App. LEXIS 1512, 1997 WL 488920, Counsel Stack Legal Research, https://law.counselstack.com/opinion/birdsong-v-bydalek-moctapp-1997.