CHRISTIAN RELIEF SERVICES INC. v. Walton

943 So. 2d 869, 2006 Fla. App. LEXIS 19414, 2006 WL 3328252
CourtDistrict Court of Appeal of Florida
DecidedNovember 17, 2006
Docket1D06-0008
StatusPublished

This text of 943 So. 2d 869 (CHRISTIAN RELIEF SERVICES INC. v. Walton) is published on Counsel Stack Legal Research, covering District Court of Appeal of Florida primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
CHRISTIAN RELIEF SERVICES INC. v. Walton, 943 So. 2d 869, 2006 Fla. App. LEXIS 19414, 2006 WL 3328252 (Fla. Ct. App. 2006).

Opinion

943 So.2d 869 (2006)

CHRISTIAN RELIEF SERVICES INC., Appellant,
v.
William H. WALTON, Jr., Appellee.

No. 1D06-0008.

District Court of Appeal of Florida, First District.

November 17, 2006.
Rehearing Denied December 21, 2006.

Kenneth B. Wright of Bledsoe, Jacobson, Schmidt & Wright, Jacksonville, and Charles H. Carpenter of Pepper Hamilton LLP, Washington, D.C., for Appellant.

Frederick R. Brock of Gartner, Brock and Simon, Jacksonville, for Appellee.

PER CURIAM.

This is an appeal from a contractual dispute in which the trial court granted final summary judgment in favor of appellee, declared that appellant has no rights in or under the contract, and concluded that the contract is void and of no effect. After de novo review of the matter, we agree with the trial court and affirm.

AFFIRMED.

ALLEN and DAVIS, JJ., concur.

POLSTON, J., dissents with opinion.

POLSTON, J., dissenting.

This appeal arises from a $20,878,000 contract for the purchase of nine apartment buildings in Duval, Putnam, and Polk counties by appellant Christian Relief Services Charities, Inc. ("CRSC"). Appellee William H. Walton, Jr., as the general partner to various single-asset limited partnerships, agreed to sell the properties to CRSC. When the deal fell apart, Walton sued to have the contract declared void on various grounds, and CRSC counterclaimed for breach of contract and specific performance. I respectfully dissent because the trial court erred by entering final summary judgment in favor of Walton.

I. BACKGROUND

Facts

The contract allowed CRSC to make a due diligence review of the properties, and provided for a specific closing date. CRSC was required to make two escrow deposits: $50,000 due two days after execution of the contract, and $25,000 by the end of the inspection period. Walton, for his part, was required to provide certain information within that specific period, so that CRSC could conduct its due diligence review within the time provided.

The contract includes a number of descriptive schedules and exhibits. Most of these schedules and exhibits were filled in, but some were left blank when the contract was executed by the parties. Paragraph 8 of the contract required various exhibits, documentation, and items to be provided at closing or as otherwise specified, including:

p) Other Documents. The parties shall deliver to each other such other documents as may be reasonably required to effectuate the conveyance of the Projects contemplated hereunder.

(Emphasis added).

The contract also requires specific notices of default and opportunity to cure before the parties may terminate the contract:

14. Default
*870 a) Purchaser's Default. In the event that Purchaser defaults in its obligations hereunder, Purchaser shall have ten (10) days after receiving such notice to cure such default. If Purchaser fails to cure the default within that period, then Seller shall have the option to either: (i) elect to extend the Closing date and/or the cure period to accommodate Purchaser's diligent efforts to remedy the unsatisfied condition or obligation, or (ii) terminate this Agreement. If Seller elects to terminate this Agreement, Seller shall give written notice of its election to Purchaser and the Seller shall give written notice to the Purchaser that the Deposit must be delivered to the Seller; and upon the Seller's receipt of the Deposit, this Agreement shall terminate and the parties shall have no further obligations to one another.
. . .
b) Seller's Default. In the event that Seller defaults in its obligations hereunder, Seller shall have ten (10) days after receiving such notice to cure such default. If Seller fails to cure the default within that period, then Purchaser shall have the option to either: (i) elect to extend the Closing Date and/or the cure period to accommodate Seller's diligent efforts to remedy the unsatisfied condition or obligation, or (ii) terminate this Agreement. If Purchaser elects to terminate this Agreement, Purchaser shall give written notice of its election to Seller and the Purchaser shall give written notice to the Seller that the Deposit must be delivered to the Purchaser, Seller shall pay to purchaser an amount equal to Purchaser's costs incurred in connection with the transaction contemplated by this Agreement, including reasonable attorneys fees (the "Termination Amount"), and upon Purchaser's receipt of the Deposit and the Termination Amount this Agreement shall terminate and the parties shall have no further obligations to one another. Purchaser and Seller agree that payment of the Deposit and the Termination Amount to Purchaser under this Paragraph 14.b) shall be as liquidated damages and not as a penalty, it being agreed that a precise measure of damages would be difficult to ascertain.

CRSC asserts that because Walton did not timely meet all his obligations with respect to the due diligence review, CRSC requested, by its November 3, 2003 letter, an extension of the time to conduct its due diligence review. Walton granted this extension. CRSC requested a second extension of the time for due diligence review on December 23, 2003:

We are writing to indicate the need for another extension of the inspection period provided for in Section 4A of the above referenced Agreement.
Section 4A of the Agreement provides that during the inspection period, Purchaser would have an opportunity to review the various due diligence materials. This included obtaining Preliminary Title Reports. As you are aware, it also provides that prior to the end of the underwriting period we would provide you with notice of any objections to title. We are working with Michael Hughes at your suggestion. We also have agreed, as you and Scott discussed, not to move forward rapidly with new surveys because of the expense. Therefore, we are unable to review the preliminary title reports and advise of any objectionable title conditions.
We continue moving ahead rapidly, undertaking many of the tasks that we would achieve during the underwriting period. However, it is important that the amended inspection period which would end on December 24 be extended. *871 By means of this letter, we are requesting an extension of the same until January 31, 2004. This should enable us to obtain the surveys at a pace you are happy with and to agree on a financing approach. If an extension is not acceptable, we would have no course but to terminate the contract at this point in time, an action, of course, which we do not wish to take.
If the foregoing extension is acceptable to you, then, to limit our exposure, this letter will constitute an amendment to the Agreement providing for an extension of the Inspection Period until January 31, 2004. If this Amendment is acceptable, please indicate by executing on this letter as indicated below. Thank you very much.
Please call me with any questions.
With all good wishes for the holiday season to you and your wonderful family and staff.

Walton did not execute this letter for the extension of time. CRSC made the second escrow deposit on January 17, 2004, less than a month late. In a January 25, 2004 letter to CRSC, Walton stated that he considered the agreement "null and void by the failure of [CRSC] to not fulfill the terms of the agreement:"

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Bluebook (online)
943 So. 2d 869, 2006 Fla. App. LEXIS 19414, 2006 WL 3328252, Counsel Stack Legal Research, https://law.counselstack.com/opinion/christian-relief-services-inc-v-walton-fladistctapp-2006.