Ge Lin v. Ecclestone Signature Homes of Palm Beach, LLC

59 So. 3d 267, 74 U.C.C. Rep. Serv. 2d (West) 293, 2011 Fla. App. LEXIS 5206, 2011 WL 1376686
CourtDistrict Court of Appeal of Florida
DecidedApril 13, 2011
Docket4D09-4940
StatusPublished
Cited by1 cases

This text of 59 So. 3d 267 (Ge Lin v. Ecclestone Signature Homes of Palm Beach, LLC) 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
Ge Lin v. Ecclestone Signature Homes of Palm Beach, LLC, 59 So. 3d 267, 74 U.C.C. Rep. Serv. 2d (West) 293, 2011 Fla. App. LEXIS 5206, 2011 WL 1376686 (Fla. Ct. App. 2011).

Opinion

WARNER, J.

Ge Lin appeals from an amended final judgment granting Ecclestone Signature Homes of Palm Beach specific performance and requiring Lin to close on a residential property. Lin contends that the contract violated the statute of frauds because the contract did not include the exact quantity of furniture in its terms. We conclude that the contract is enforceable and affirm.

Ge Lin, the Buyer, executed a purchase agreement with Ecclestone, the Seller, to buy a pre-construction home in Port St. Lucie. 1 The contract provided that the home was to be completed and available for occupancy within two years. The home was to be a fully furnished and decorated home, to be built based on a floor plan attached to the agreement. The form agreement addendum referred to an attached Schedule “1” to the agreement as a list of furniture and furnishing; however, it is undisputed that schedule 1 was not actually attached. The total purchase price was $3,350,000 ($2,990,000 and $360,000 for the furniture/furnishing package). The Buyer paid $335,000 as a down payment. The agreement provided that after closing occurred, the Seller would lease the house back from the Buyer to use it as a model home for a period of 18 months at a rent of $22,000 per month. Subsequent to the signing of the contract, the Seller contracted with a decorator and selected the furniture for the home.

By February 2007, the house was substantially completed, though not yet furnished. The Seller sent the Buyer a certified letter scheduling the closing for March 30, 2007. At a walk-through that March, the Buyer indicated he wanted certain things changed or added and those *269 items were included in a letter sent by the Buyer. In the - letter, the Buyer complained that he had not received sufficient information about- the furniture and its quality. The next day, he met with the Seller’s representative at the interior decorator’s warehouse. The decorator made a presentation of most of the furniture and furnishings that she had ordered for the home. While the Buyer may have had some reservations about the quality of some of the items, he never objected to the quantity of items ordered for the home.

The Seller thereafter scheduled three closings for the home on March 30, 2007, May 2, 2007, and May 25, 2007, prior to the expiration of the two-year deadline on June 18, 2007. The first closing on March 30, 2007, was postponed because the Buyer wanted a privacy wall constructed around a front window. The second closing on May 2 was postponed because although the Buyer showed up he was not prepared to close, as he was still working on obtaining financing. The third closing was noticed for May 25 and also did not occur. The house was still unfurnished at this time. Final date of performance of the contract on June 18, 2007, passed without a closing. At the time the furniture had not been installed in the home, although it was available in a warehouse. The Seller finally moved it into the home in November 2007.

In July 2007, the Seller filed suit for specific performance of the contract, breach of contract, and declaratory judgment. The Buyer answered, filed affirmative defenses, and raised a counterclaim for declaratory relief, asserting that the agreement was unenforceable and that the Seller had breached the agreement. He sought return of his deposit. At trial on February 5, 2009, the Buyer took the position that because the furniture was not in the house on the date set for closing, the Seller had breached.

The Buyer also contended that there was no enforceable contract because the parties had not put the furniture and furnishing package in writing, violating the statute of frauds, section 672.201, Florida Statutes, which required that the sale of property above $500 be in writing to be enforceable. The Seller claimed that because the furniture was ordered and in a warehouse, the Seller was ready, willing and able to install it, thus the Seller did not breach. Further, the Seller contended that because it was going to lease back the home as a model the fact that the furniture was not yet installed would not have materially affected the Buyer.

The trial court entered Final Judgment granting specific performance to the Seller finding' that the Buyer had breached the contract. The court specifically rejected the Buyer’s contention that the Seller was not in a position to furnish the residence by the two-year deadline, finding that the Seller had a long-standing relationship with its decorator such that the furniture would have been delivered on time, if necessary. The court also found that although the parties had not agreed to a specific listing of the furniture, from the negotiations the parties agreed that the type and quality would be the same as in two other model homes which the Buyer saw prior to signing the contract.

The court entered an amended final judgment after considering the Buyer’s motion for rehearing. The -court found that the omission of Schedule 1 (the furniture/furnishing package) was a latent ambiguity and that parol evidence was admissible to establish the specific items of furniture/furnishings package to be installed in the home. This included agreements as to the type and quality of furnishings as well as the fact that the Seller *270 had sole discretion in-its-, selection of furnishings, which the documents revealed would be similar to two existing and furnished model homes. The Buyer now appeals from that amended final judgment.

The Buyer’s primary contention on appeal remains what he argued in the trial court: the contract violates the statute of frauds contained in section 672.201, and oral modifications of the contract would be prohibited by this section. 2 Section 672.201 provides:

(1) Except as otherwise provided in this section a contract for the sale of goods for the price of $500 or more is not enforceable by way of action or defense unless there is some writing sufficient to indicate that a contract for sale has been made between the parties and signed by the party against whom enforcement is sought or by his or her authorized agent or broker. A writing is not insufficient because it omits or incorrectly states a term agreed upon but the contract is not enforceable under this paragraph beyond the quantity of goods shown in such writing.

(emphasis supplied).

Although both the parties and the trial court analyzed this case based upon the application of the statute of frauds for a sale of goods, section 672.201(1), the contract was for the sale of furnished real estate, not the sale of goods. As the trial court found, the provision of a furnished home was an integral element of the sale of the property. It did not constitute a separate contract. We must look to the predominant nature of the transaction in determining whether to apply the Uniform Commercial Code’s Article 2,. regarding the sale of goods. See BMC Indus., Inc. v. Barth Indus., Inc., 160 F.3d 1322, 1330 (11th Cir.1998)(citing United States Fid. & Guar. Co. v. N. Am. Steel Corp., 335 So.2d 18, 21 (Fla. 2d DCA 1976)).

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Bluebook (online)
59 So. 3d 267, 74 U.C.C. Rep. Serv. 2d (West) 293, 2011 Fla. App. LEXIS 5206, 2011 WL 1376686, Counsel Stack Legal Research, https://law.counselstack.com/opinion/ge-lin-v-ecclestone-signature-homes-of-palm-beach-llc-fladistctapp-2011.