City Realty, Inc. v. Continental Cas. Co.

623 So. 2d 1039, 1993 WL 179907
CourtSupreme Court of Alabama
DecidedMay 28, 1993
Docket1911427, 1911599 and 1911687
StatusPublished
Cited by12 cases

This text of 623 So. 2d 1039 (City Realty, Inc. v. Continental Cas. Co.) is published on Counsel Stack Legal Research, covering Supreme Court of Alabama primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
City Realty, Inc. v. Continental Cas. Co., 623 So. 2d 1039, 1993 WL 179907 (Ala. 1993).

Opinion

A jury awarded the plaintiffs, Morris Wayne ("Wayne") Forbus and Mary C. Forbus, $300,000 on fraud claims against the defendants, City Realty Company, Inc., and Martha Cochran.

Underlying this case are the Forbuses' attempts to purchase property "listed" for sale by the president/manager of City Realty, Martha Cochran. Ultimately, Cochran, along with her husband and son, bought the property. The Forbuses sued Cochran and City Realty, averring that Cochran had engaged in fraudulent behavior in order to obtain the property, and, the Forbuses alleged, to prevent them from purchasing the property.

In a separate lawsuit, City Realty's "errors and omissions" insurer, Continental Casualty Company (referred to hereinafter as "CNA") had sued the Forbuses and City Realty for a judgment declaring the extent of City Realty's insurance coverage in the event the Forbuses prevailed at trial. CNA argued that City Realty was not covered for the type of behavior alleged by the Forbuses. CNA obtained a summary judgment in its favor and from this judgment City Realty appeals (case 1911427).

Thus, these three appeals involve two related cases, one in which the Forbuses sued City Realty and Martha Cochran based on theories of fraud, and one in which City Realty's insurer sued the Forbuses and City Realty, arguing that it had no contractual obligation to pay any judgment that the Forbuses might obtain.

After the Forbus trial, the court held the jury verdict in favor of the Forbuses to be excessive by $45,000. The Forbuses appeal from the trial court's order of remittitur (case 1911687).

Also, the trial court denied City Realty and Cochran's motion for a j.n.o.v. They appeal from that denial (case 1911599) (in addition to appealing from the judgment in favor of City Realty's insurer, which left City Realty without coverage for the award).

In the spring of 1990, City Realty and Mrs. Eunice Mae Blair were parties to a "listing agreement" for the sale of a house and adjoining acreage owned by Mrs. Blair. In late May 1990, an acquaintance of Mrs. Blair, Russell Lawhorn, expressed an interest in buying the property. According to Mrs. Blair, her willingness to sell for $90,000 was conveyed to Lawhorn through her listing agent, Cochran. She testified that Lawhorn, however, did not agree to purchase her property. In contrast, Cochran testified that Lawhorn offered to purchase the property for $90,000 and that Mrs. Blair agreed to this price in Cochran's presence.

It is undisputed that Cochran did not undertake to prepare for a closing on a purported Lawhorn sale, nor was there ever any written contract for a sale to Lawhorn.

Approximately a month later, Wayne Forbus attempted to make an offer on the Blair property through City Realty agent Amanda Scoggins. Scoggins testified that client offers have to be submitted to the seller through the listing agent; here, that was Cochran.1 Scoggins stated, "I called Martha [Cochran] and told her I had an [oral] offer on the Blair house of $85,000 [from the Forbuses] and did I need to [do a written proposed] contract." According to Scoggins, Cochran said "[N]o, I've got a contract pending." At trial, Cochran denied suggesting that Scoggins not put the Forbus offer in writing, but conceded that she did tell Scoggins that a contract was "pending," meaning, she testified, her purported understanding that Lawhorn was buying the property. It is undisputed that there was no written contract for sale on the property "pending" a closing. *Page 1042

The Forbuses allege that Cochran discouraged a Blair-to-Forbus sale by suggesting that Scoggins not tender a written offer on the Blair property.

Unknown to the Forbuses, their interest in purchasing the Blair property for $85,000 was not related to Mrs. Blair. Mrs. Blair testified, without objection, that had she known the Forbuses were willing to pay $85,000 she would have been willing to sell them the property for that amount.

On June 25, 1990, Cochran received word through Mrs. Blair's daughter that Mrs. Blair was very anxious to sell. According to Cochran, she contacted Lawhorn, who told Cochran that he would not buy the property.

Cochran then telephoned Scoggins, and, according to Scoggins, told her to "get in touch with your people [the Forbuses]," and told her, "Mrs. Blair is awfully desperate to sell; she's anxious to sell. It's just urgent. . . ." Scoggins stated that she told Cochran that she would get in touch with the Forbuses about making another offer. Scoggins then called Mary Forbus, who was, according to Scoggins, "excited" but wanted to see the property again and could not do so until the next day, June 26. Scoggins did not notify Cochran of this fact.

That evening, Cochran spoke by telephone with Mrs. Blair's daughter. Cochran testified that Mrs. Blair's daughter told her that she had previously received from Mary Forbus a note in which Mary Forbus offered to buy the Blair property for $70,000.2 According to Cochran, Mrs. Blair's daughter had concluded that the Forbuses would not offer more than $70,000. Cochran did not disclose the Forbuses' willingness to offer $85,000. Instead, Cochran stated that she herself was willing to purchase the property for $70,000.

The next afternoon, June 26, Amanda Scoggins went to City Realty to pick up the agency's key to the Blair house, so that she and Mary Forbus could look at it, as they had planned. Mary Forbus waited outside. Cochran, who was in the City Realty offices at the time, testified that she told Scoggins the property was sold.

The property was not, in fact, sold. Also, although Cochran testified at trial that "an agreement had been reached," it is undisputed that there was no written contract for sale at that time. This "agreement" apparently refers to either an oral understanding between Cochran and Mrs. Blair'sdaughter, or a written offer by Cochran that Mrs. Blair had not then accepted.

Cochran told Scoggins that she, her husband, and her son had bought the property for $70,000. Scoggins testified:

"I said, 'Well, why would she accept it [$70,000]?' and she said, 'Amanda, you just didn't understand the urgency of this sale. . . .' I said, 'Well, I have Mary out here in the car ready to make an offer on the Blair house.' I said, 'I don't know what to do.' She said, 'Well, just explain to her that it's sold but don't tell her what it sold for.' "

As instructed, Scoggins told Mary Forbus that the property was sold. Scoggins also testified that she untruthfully told Mary that she did not know the sale price. According to Scoggins, upon hearing the news of the sale Mary "was in tears. . . . Mary just cried."

The next day, June 27, Cochran and her husband travelled to Georgia to meet Mrs. Blair to execute a contract for sale, back-dated to June 25, i.e., dated the day before Cochran told Scoggins the property was sold. At the same meeting the sale was closed, with Mrs. Blair unaware of the Forbuses' interest in purchasing the property for $85,000.

On June 28, Mary Forbus went to City Realty to confront Cochran. By this time, Mary had learned of the $70,000 sale price. She testified:

"I said, 'Martha, why did you buy the Blair house for $70,000 when you knew that Amanda was working with me for $85,000.' It was just — she never made a complete sentence, she just said something about *Page 1043 'urgency'. . . .

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Guyoungtech USA, Inc. v. Dees
156 So. 3d 374 (Supreme Court of Alabama, 2014)
Downs v. Lyles
41 So. 3d 86 (Court of Civil Appeals of Alabama, 2009)
Hood v. Bennitt (In Re Bennitt)
348 B.R. 820 (N.D. Alabama, 2006)
Tanner v. State Farm Fire & Casualty Co.
874 So. 2d 1058 (Supreme Court of Alabama, 2003)
State Farm Fire & Casualty Co. v. Slade
747 So. 2d 293 (Supreme Court of Alabama, 1999)
Darwin Dobbs Co. v. Wesson
714 So. 2d 989 (Court of Civil Appeals of Alabama, 1997)
Talent Tree Personnel Serv., Inc. v. Fleenor
703 So. 2d 917 (Supreme Court of Alabama, 1997)
First Commercial Bank v. Spivey
694 So. 2d 1316 (Supreme Court of Alabama, 1997)
Coastal Bail Bonds, Inc. v. Cope.
697 So. 2d 48 (Court of Civil Appeals of Alabama, 1996)
Continental Cas. Co. v. City Realty, Inc.
673 So. 2d 399 (Supreme Court of Alabama, 1995)
CLARKE-MOBILE COUNTIES GAS DIST. v. Reeves
628 So. 2d 368 (Supreme Court of Alabama, 1993)

Cite This Page — Counsel Stack

Bluebook (online)
623 So. 2d 1039, 1993 WL 179907, Counsel Stack Legal Research, https://law.counselstack.com/opinion/city-realty-inc-v-continental-cas-co-ala-1993.