Cavagnaro v. Coldwell Banker Alfonso Realty, Inc.

995 So. 2d 754, 2008 Miss. App. LEXIS 108, 2008 WL 427939
CourtCourt of Appeals of Mississippi
DecidedFebruary 19, 2008
Docket2006-CA-01818-COA
StatusPublished
Cited by3 cases

This text of 995 So. 2d 754 (Cavagnaro v. Coldwell Banker Alfonso Realty, Inc.) is published on Counsel Stack Legal Research, covering Court of Appeals of Mississippi primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Cavagnaro v. Coldwell Banker Alfonso Realty, Inc., 995 So. 2d 754, 2008 Miss. App. LEXIS 108, 2008 WL 427939 (Mich. Ct. App. 2008).

Opinion

995 So.2d 754 (2008)

C.A. CAVAGNARO and Wanda Cavagnaro, Appellants
v.
COLDWELL BANKER ALFONSO REALTY, INC., Appellee.

No. 2006-CA-01818-COA.

Court of Appeals of Mississippi.

February 19, 2008.
Rehearing Denied July 22, 2008.
Certiorari Denied October 23, 2008.

*755 Floyd J. Logan, Gulfport, attorney for appellants.

Gail D. Nicholson, Chester D. Nicholson, Gulfport, attorneys for appellee.

Before KING, C.J., BARNES and ISHEE, JJ.

BARNES, J., for the Court.

¶ 1. C.A. and Wanda Cavagnaro appeal the judgment of the Harrison County Circuit Court which affirmed the County Court of Harrison County, which awarded Coldwell Banker Alfonso Realty (Alfonso) a real estate commission in the amount of $30,900, attorneys' fees of $5,000, and $2,416.51 in expenses. The dispute at issue arose from a contract of sale between the Cavagnaros and Edward and Yvonne Hartnett for the purchase of the Cavagnaros' home in Long Beach, Mississippi. The sale fell through when it was discovered that the driveway encroached upon the adjoining property. Finding no reversible error, we affirm the judgment of the circuit court.

FACTS AND PROCEDURAL HISTORY

¶ 2. The Cavagnaros were the owners of a residence and lot in Long Beach, Mississippi, which they purchased in 1990. When the Cavagnaros purchased the residence, the driveway consisted of shells and gravel; however, after the purchase, they *756 paved the driveway. Unbeknownst to the Cavagnaros, the paved driveway encroached on the neighbor's property by twenty-eight inches.

¶ 3. Due to Mr. Cavagnaro's health, the couple made the decision to sell the property. They entered into a 120-day exclusive authorization to sell agreement with Alfonso and its agent, Barbara Gay. The agreement was set to terminate on September 3, 2000. The Hartnetts, residents of Arkansas, desired to relocate to the Mississippi Gulf Coast and hired Sandra Hutchison, also an Alfonso agent. Subsequently, the Cavagnaros and the Hartnetts entered into a contract for the sale and purchase of real estate for the Long Beach residence with a purchase price of $515,000. Alfonso was authorized by the contract to act as a dual agent. The Hartnetts originally wrote into the contract a closing date of no later than January 15, 2001; however, the Cavagnaros requested that the closing date be November 30, 2000.

¶ 4. On the seller's disclosure sheet filled out by Mrs. Cavagnaro, she stated that a survey of the property was performed in 1990. She also checked "no" in answer to the question: "Are there any right of way, easements, or similar matters that may affect your ownership interest in the property?" After another survey of the property was conducted, the encroachment was discovered. None of the parties involved in this action were aware of the encroachment prior to this survey. Due to the discovery of the encroachment, the closing did not take place on November 30, 2000. Rather, the Hartnetts executed an addendum to the sales contract which granted an additional ten days to cure the encroachment and provided that the seller would incur the cost and the purchaser would receive "clear title, no exceptions." The original contract of sale required only marketable title to be conveyed to the purchaser. Mrs. Cavagnaro signed the addendum; however, the portion which required the seller to incur the costs of removing the encroachment was struck through.

¶ 5. Kenny Jones, an attorney representing the Gulf Coast Board of Realtors, was consulted by both parties to assist in solving the encroachment problem. Jones made several suggestions as to how to solve the encroachment problem, including the following: (1) obtaining title to the encroachment from the neighbors; (2) obtaining title insurance; (3) filing a lawsuit for adverse possession of the encroachment; and (4) moving the driveway. With regard to acquiring title of the encroachment, the neighbors were willing to execute a permissive use agreement but would not agree to a permanent transfer or easement. Jones was also unable to find anyone willing to write a title insurance policy without including an exception for possible litigation as a result of the encroachment. As for the adverse possession suggestion, the Hartnetts were not receptive to the idea because it could not be accomplished in a timely fashion. Finally, the Hartnetts would not consent to moving the driveway because it would change the aesthetics of the property and possibly damage a large, stately oak tree. Accordingly, Jones testified at trial that the Cavagnaros were unable to meet their contractual obligation of conveying the property to the Hartnetts by warranty deed as was required by the contract without breaching the warranties of seisin and quiet enjoyment.

¶ 6. At the conclusion of the ten-day extension, the Hartnetts sought the return of their earnest money deposit and signed a release at Alfonso's request. The contract of sale required that, prior to returning the earnest money, the agent was to provide written notice to the seller by either hand delivery, signed for by the *757 addressee, or by certified mail, with both stating that the repayment of the earnest money would be made unless the party submitted a written protest within five days of the notice. Prior to returning the earnest money, Gay took the release to Mrs. Cavagnaro, who refused to sign it. Mrs. Cavagnaro conceded at trial that Gay gave her the release. She testified that she did not tell Gay not to return the earnest money to the Hartnetts, and she never objected to the return of the money until legal proceedings began. Gay signed the mutual release on the line designated for the broker's signature and returned the money to the Hartnetts on December 14, 2000.

¶ 7. The Hartnetts subsequently purchased another home in Pass Christian, Mississippi. Gay acted as the seller's agent, and Hutchison as the buyer's agent. The two shared the commission from the sale of the property. The Cavagnaros eventually signed a listing agreement with another realtor and sold their home to another buyer.

¶ 8. When the Cavagnaros allegedly refused to pay certain expenses,[1] Alfonso filed suit in the Justice Court of Harrison County. The justice court ruled in favor of Alfonso. After the Cavagnaros appealed to the County Court of Harrison County, they filed a counterclaim against Alfonso alleging breach of fiduciary duty and negligent failure to close the Hartnett sale. Alfonso answered the counterclaim by moving to dismiss the underlying action for the expenses and later filed a declaratory judgment action in the Harrison County Chancery Court seeking a resolution as to whether Alfonso was entitled to the commission from the Hartnett sale. After the Cavagnaros filed a motion to dismiss the declaratory judgment on the grounds that Alfonso had elected its remedy in the justice court, the chancellor transferred the declaratory judgment action and the appeal to the county court and ordered the cases consolidated.

¶ 9. Alfonso then moved to voluntarily dismiss the justice court complaint without prejudice because the appeal was before the county court de novo. The county court granted the motion, and the justice court action was dismissed without prejudice. Subsequently, the declaratory judgment action and the counterclaim were tried in a bench trial by Special County Court Judge William Agin. At the conclusion of the bench trial, the Cavagnaros moved to dismiss the counterclaim.

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Related

Whalen v. Bistes
45 So. 3d 290 (Court of Appeals of Mississippi, 2010)
Varnado v. Alfonso Realty, Inc.
16 So. 3d 746 (Court of Appeals of Mississippi, 2009)

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Bluebook (online)
995 So. 2d 754, 2008 Miss. App. LEXIS 108, 2008 WL 427939, Counsel Stack Legal Research, https://law.counselstack.com/opinion/cavagnaro-v-coldwell-banker-alfonso-realty-inc-missctapp-2008.