Bush v. Cathey

598 S.W.2d 777, 11 A.L.R. 4th 881
CourtCourt of Appeals of Tennessee
DecidedNovember 27, 1979
StatusPublished
Cited by17 cases

This text of 598 S.W.2d 777 (Bush v. Cathey) is published on Counsel Stack Legal Research, covering Court of Appeals of Tennessee primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Bush v. Cathey, 598 S.W.2d 777, 11 A.L.R. 4th 881 (Tenn. Ct. App. 1979).

Opinion

OPINION

GODDARD, Judge.

This is an action for specific performance of an alleged contract for the sale of the home of Betty M. Cathey, Defendant-Appellant, Cross-Appellee, brought by Condon S. Bush and wife Betsy R. Bush, Plaintiffs-Appellees, Cross-Appellants. Both parties appeal the judgment of the Chancery Court for Knox County which decreed specific performance of the contract and awarded the Plaintiffs $5000 in compensatory damages.

The Defendant assigns as error (1) that a contract, enforceable at law, did not exist between the Plaintiffs and the Defendant, (2) that Ed Johnson (a real estate broker) acted as agent for the Plaintiffs so as to charge them with his conduct, (3) that, if a contract did exist for the sale of the Defendant’s home to the Plaintiffs, it was not so clear, definite and free from any suspicion of fraud or unfairness as to support the extraordinary remedy of specific performance, and (4) that if a contract did exist, the award of money damages was not justified in light of the proof. Plaintiffs assign as error (1) that the Chancellor may not base a finding of fact regarding the costs and expenses of maintaining a personal residence on personal knowledge absent any proof of such costs, (2) that a purchaser of real estate should be reimbursed for damages such as additional moving expenses caused by the vendor’s delay in delivery of possession, and (3) that a purchaser of real estate should be compensated for the loss of the use of such property caused by the vendor’s refusal to deliver possession pending the appeal of the Trial Court’s grant of specific performance.

Betty M. Cathey is a widow, 54 years of age, whose husband, Gene Cathey, died of brain cancer in June 1973 after a six months’ illness. They had been married for 25 years.

The late Mr. Cathey had opérated two businesses in his lifetime, an appliance store in which Mrs. Cathey worked, and a house building business. Mr. Cathey built the house that is the subject of this litigation. It is an 18-room, 6000 square foot, two-level brick home adjacent to a golf course in Knoxville. The Catheys, their daughter Kay, and Mrs. Cathey’s mother occupied that house as their home from the time it was built in 1961.

At the request of Mr. Cathey a Knoxville real estate broker named Dan Culp assisted Mrs. Cathey in obtaining a real estate broker’s license and allowed her to use his office on a part-time basis. The result of Mrs. Cathey’s work in the real estate business was that she sold “one and a half” houses, but it was during that period that she met Ed Johnson, a broker, who at the time was working for Culp.

In February 1978, Mrs. Cathey’s mother, Pauline Eubank, was hospitalized after suf *779 fering an attack at home. While Mrs. Eu-bank was in the hospital, Mrs. Cathey received a telephone call from Ed Johnson (now employed by Volunteer Realty Company) asking if she was interested in selling her house. He told her that Fred Smith was interested in buying it. Mrs. Cathey denied that she ever formally listed the house with Mr. Johnson, but she did express a willingness for him to show the house.

For several weeks Condon Bush had been searching for a home in Knox County into which he and his family could move from Wisconsin. He had been guided by several real estate agents to look at houses, none of which had suited his needs. Two of the houses which he looked at were listed with Mr. Johnson, who was also present during the showing. In order to “put another real estate man on the job,” Mr. Bush contacted Mr. Johnson, and together they looked at several other houses.

On March 2 Mr. Bush, unaccompanied by his wife, was first shown the Cathey home. On the following day Mr. Bush flew back to Wisconsin to discuss the matter with his wife. In the meantime Mrs. Cathey and Mr. Johnson had been negotiating a purchase with Fred Smith, and on March 4 Mr. Smith called Mr. Johnson and said that he would meet her basic terms which consisted of a purchase price of $165,000 with $2500 in earnest money. Mr. Johnson testified that on the same day Mrs. Cathey said that she would wait until Mr. Bush looked at the house, and then “would see who came up with the best offer on the thing.” Mr. and Mrs. Bush looked at the house on March 6 at about 4:00 p. m. and later that afternoon prepared a written agreement in which the Bushes offered Mrs. Cathey $165,000 cash including $3000 earnest money with closing on June 1, 1978, and delivery of possession on June 15, 1978. The circumstances under which Mr. Johnson conveyed the offer to Mrs. Cathey are set out in the Defendant’s brief as follows:

Ed Johnson took the offer that evening at or about 9:00 p. m. to Betty Cathey’s house, but found her not at home. Ed Johnson said that he believed Mrs. Cath-ey was avoiding him on that evening. Johnson was at that point proceeding under instructions from the Bushes to “expedite” the contracting process, to get it “done as quickly as you can.” Thus, since Betty Cathey avoided him on Monday evening, Ed Johnson took the offer back to her home (unannounced), arriving first thing the next morning. He said it was about 8:30, Mrs. Cathey said that he arrived about 7:30 a. m., before breakfast and while she was still in the bathtub. As Mrs. Cathey describes the events of that morning, she received a number of phone calls about unrelated matters in the short time that Ed Johnson was there, and she expressed to him great uncertainty about whether she ought to sign this contract that he presented to her. Her testimony was that she asked Johnson to leave, that it was too early in the morning for her to consider such a matter, and that in any event a number of other things were in urgent need of her attention. She also testified that she asked Mr. Johnson (after he refused to leave) if the contract could not be amended to allow her fifteen days within which to look for another place to live and to make up her mind whether she really wanted to sell. She testified that Ed Johnson told her that that could not be done. Except as concerns the exact time of day when he came to her home, Ed Johnson did not contradict any of Mrs. Cathey’s description of the events of that morning; when asked specifically whether she had requested a provision in the contract to allow her time to think about it, Mr. Johnson said simply, “I don’t recall.”

Mrs. Cathey made two changes in the written agreement: (1) a provision requiring her to replace the guttering was deleted; and (2) the amount of earnest money was increased from $3000 to $5000. Thereafter, she signed the document which counsel for the Appellant refers to as a counteroffer.

Meanwhile, Mr. Bush had taken his wife to the Knoxville Airport where she was to *780 board a plane for Wisconsin. Mr. Johnson reached Mr. Bush at the airport by telephone and informed him of the changes which Mrs. Cathey had made. After Mrs. Bush boarded the plane, Mr. Bush returned to the office of Mr. Johnson where he affixed both his initials and those of his wife to the changes made by Mrs. Cathey and delivered a check for $5000. Mr. Bush testified that .Mrs. Bush told him to sign her initials to the contract, and later, in Mr. Johnson’s office, affirmed the act by saying, “He did that under my instructions.”

On March 11 Mrs. Cathey called Mr. Johnson and told him that she was unwilling to sell her home. On March 15 she conveyed the same information to Mr.

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Bluebook (online)
598 S.W.2d 777, 11 A.L.R. 4th 881, Counsel Stack Legal Research, https://law.counselstack.com/opinion/bush-v-cathey-tennctapp-1979.