Colony Park Associates v. Gall

572 A.2d 891, 154 Vt. 1, 1990 Vt. LEXIS 31
CourtSupreme Court of Vermont
DecidedJanuary 26, 1990
DocketNo. 88-193
StatusPublished
Cited by11 cases

This text of 572 A.2d 891 (Colony Park Associates v. Gall) is published on Counsel Stack Legal Research, covering Supreme Court of Vermont primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Colony Park Associates v. Gall, 572 A.2d 891, 154 Vt. 1, 1990 Vt. LEXIS 31 (Vt. 1990).

Opinion

Dooley, J.

Plaintiff, Colony Park Associates, signed a contract to purchase forty-four acres of residential development land in Williston, Vermont from John D. Gall and Arthur W. Mason, hereinafter defendants.1 When defendants refused to tender the deed, plaintiff sued for specific performance. The [3]*3trial court ruled in plaintiff’s favor and defendants appealed, claiming that the court abused its discretion in awarding specific performance and committed numerous evidentiary and procedural errors. We affirm.

Defendant Gall authorized a real estate agent, Hal Benson, to place the property on the market in December of 1984. After a number of months, Malcolm Teeson, one of plaintiff’s three partners, contacted Benson to express interest in the property. Teeson was also a real estate broker, and he and Benson arranged to split the commission if the sale were consummated. This arrangement was not expressly made in the eventual contract.

On August 9,1985, plaintiff submitted a proposed contract to defendants, with a closing date of August 9,1986. This offer was not accepted. On August 20,1985, plaintiff made a second offer, also calling for closing in one year, on August 20, 1986, to purchase the land for a slightly higher price. Defendants accepted this offer.

The year-long delay was included to give plaintiff the opportunity to obtain state and local permits to build condominiums on the land. The sale was conditioned on plaintiff’s success in obtaining these permits. The trial court found that plaintiff diligently pursued this task. Plaintiff encountered delays, however, when its petition for access to the town sewer line was first denied and later granted. Throughout the process, plaintiff kept Benson abreast of its progress. Defendants never expressed any concern over the permit process, nor did they inquire about, or arrange for, a closing as August 20, 1986 approached. On that date, title to the parcel was encumbered by liens and attachments and was therefore not marketable. The trial court found that “sellers could not have closed in August even had Colony Park demanded such a closing.”

The broker proposed to postpone the closing date until September 10,1986. Plaintiff and defendant Gall agreed to the extension, but defendant Mason refused. Plaintiff subsequently proposed a closing date of September 24, 1986. This was also rejected. Defendants never tendered the deed to plaintiff.

[4]*4On October 23, 1986, plaintiff brought this action seeking specific performance of the contract of sale as well as damages, costs and attorney’s fees. The case came to trial in 1988, and the court found for plaintiff and awarded it specific performance of the contract on March 29, 1988.

I.

Defendants argue first that specific performance should not have been awarded because time was of the essence and plaintiff failed to perform — that is, to tender payment — on time. Where time is of the essence, a buyer of land cannot compel delivery of the deed unless payment is tendered at the time specified in the contract. Mouat v. Wolfe, 150 Vt. 637, 639, 556 A.2d 99, 101 (1989). The premise of the argument was not satisfied here, however, because time was not of the essence in this contract.

Although the contract specified a closing date, that in itself did not make time of the essence.

The general rule in equity is that time is not of the essence of the contract, and equity will not treat it as of the essence of the contract unless it affirmatively and clearly appears that the parties so regarded it. . . . It is not enough that a specific time be named in the contract; the court is to look at the whole scope of the transaction to see whether the parties really meant the time named to be of the essence of the contract.

McLean v. Windham Light & Power Co., 85 Vt. 167, 182, 81 A. 613, 619 (1911) (citations omitted). Nothing in the contract here suggests that the closing date was an essential term, and certainly nothing in the circumstances at the time the contract was signed or in the subsequent conduct of the parties indicates otherwise. See Carter v. Sherburne Corp., 132 Vt. 88, 92, 315 A.2d 870, 873-74 (1974). To the contrary, the circumstances indicate that time was not of the essence. The contract, like the offer before it, included a term specifying a closing date one year from the preparation of the document. Both parties understood that plaintiff had to apply for permits, as the contract was contingent upon their acquisition. During this process, plaintiff [5]*5kept defendants’ broker informed of developments. For their part, defendants did not appear concerned as the year progressed; they did not inquire into plaintiff’s progress and, most important, they did not prepare for an August 20, 1986 closing date. Specifically, they did not take the steps required to clear the property’s title of encumbrances so as to permit its conveyance on August 20. Even if the language of the contract had conveyed the impression that time was of the essence, the doctrine cannot be used against a purchaser of property where the sellers acted as if time was not of the essence.2

Accordingly, the doctrine of “time being of the essence” was not a bar to. plaintiff’s action for specific performance. As we stated recently in Mouat v. Wolfe: “Where time is not of the essence, the buyer who tenders payment late may bring a suit in equity, depending on the reasonableness of the delay, to compel delivery.” 150 Vt. at 639, 556 A.2d at 101 (emphasis in original). Here, plaintiff wrote to defendants on September 18,1986, stating its readiness to perform its obligations under the contract and proposing a meeting to close the deal on September 24, 1986.3 The requisite elements of an action to compel delivery were present.

[6]*6II.

Defendants next argue that, even if time were not of the essence, the trial court abused its discretion by awarding the remedy of specific performance. They contend that the court improperly weighed the several factors bearing on specific performance set forth in Villeneuve v. Bovat, 128 Vt. 345, 348, 262 A.2d 925, 927 (1970), and Johnson v. Johnson, 125 Vt. 470, 473, 218 A.2d 43, 45 (1966). They further contend that the court “reversed” the parties’ burdens by concluding: “While recognizing specific performance as discretionary, we find no basis for exercising that discretion to deny plaintiffs their right to such a remedy.” Defendants argue that the court should have determined whether to exercise its discretion to grant the “extraordinary remedy” of specific performance.

Defendants stretch the trial court’s holding to fit their burden-shifting attack. In any event, the trial court’s approach reflects the Johnson opinion on which defendants rely:

Although specific performance of a contractual obligation follows almost as a matter of course from proof of its existence, there is provision for the exercise of a judicial discretion, based on considerations proper for equity’s concern.

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Bluebook (online)
572 A.2d 891, 154 Vt. 1, 1990 Vt. LEXIS 31, Counsel Stack Legal Research, https://law.counselstack.com/opinion/colony-park-associates-v-gall-vt-1990.