Grand Harbour Development, LLC v. Lattof

127 So. 3d 1230, 2013 WL 2130932, 2013 Ala. Civ. App. LEXIS 123
CourtCourt of Civil Appeals of Alabama
DecidedMay 17, 2013
Docket2120036
StatusPublished
Cited by3 cases

This text of 127 So. 3d 1230 (Grand Harbour Development, LLC v. Lattof) is published on Counsel Stack Legal Research, covering Court of Civil Appeals of Alabama primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Grand Harbour Development, LLC v. Lattof, 127 So. 3d 1230, 2013 WL 2130932, 2013 Ala. Civ. App. LEXIS 123 (Ala. Ct. App. 2013).

Opinion

THOMAS, Judge.

Facts and Procedural History

On December 13, 2005, Grand Harbour Development, LLC (“GHD”), entered into a sales contract to purchase approximately 13 acres of waterfront property in Orange Beach (“the property”) from Mitchell G. Lattof, Jr., individually and as trustee under the Will of Frankie T. Lattof, deceased, and Walter Trent Marina, Inc. (hereinafter referred to collectively as “Lattof’). The record indicates that GHD intended to construct a 462-unit condominium development (“the development”) on the property. In addition to the purchase price of $25,000,000, the contract included a number of terms, including covenants and easements. Paragraph 14 of the contract, the construction of which serves as the underlying dispute in this action, reads as follows:

“14. Sellers’Purchase of Units.
“(A) Sellers shall receive, in the aggregate, a credit of $1,500,000.00 against pre[-]construction opening list prices on up to three (3) condominium units with Sellers being given the absolute first choice for one of such units and being [1233]*1233given the 20th and the 35th choices for the others of such units. Sellers shall notify Buyer of Sellers’ first choice within fifteen (15) days of being provided with floor plans, site plan and tentative pricing, and Sellers shall, promptly upon Buyer’s request, execute Buyer’s standard pre-construction purchase agreement and post a cash pre-construction earnest money deposit equal to whatever percentage of the purchase price is required of all other pre[-]construction purchasers of units in the development. Sellers acknowledge that the cash deposit may be used by Buyer for construction purposes in accordance with the Alabama Condominium Act, as amended. At the time that Sellers designate their first choice, Sellers shall also identify to Buyer the unit Sellers hope to purchase with their 20th choice and 35th choice. Sellers acknowledge that floor plans, site plan and pricing provided to Sellers are not necessarily final, and, until the pre-construction purchase agreement is executed by both parties (or thereafter as may be permitted by such pre[-]construction purchase agreement), Buyer may make such change as Buyer deems best fit in Buyer’s sole and absolute discretion. For example, if tentative pricing for a unit chosen by Sellers is $1,000,000.00, but Buyer later increases all prices by 10% for substantially all of the units or all of the units of the type chosen by Sellers, then the price for the unit chosen by Sellers shall also be increased commensurately. Sellers shall not be entitled to purchase any boat slips with these units. In lieu of providing all or part of this credit to Sellers, as a buy-out of all or some of Sellers’ under this paragraph 14(A), Buyer may pay to Sellers in cash at any ... time prior to the execution of pre-construction purchase agreements using the entirety of the credit, the amount of the then remaining credit plus the sum of $25,000.00.
“(B) In addition to the rights of Sellers under subparagraph 14(A) above, Sellers shall have thirty (30) days following Buyer’s delivery to Sellers of its pre-construction pricing and building grid to elect to purchase up to twenty-five (25) units on a ‘first-come, first-served’ basis; Sellers’ election and selection of then available units must be set forth in writing faxed, prior to the expiration of such thirty (30) day period, to all of the following: (i) ... to Randy Davis/Frank Malone, (ii) ... to Skip Davis, (iii) ... to Richard Davis, and (iv) ... to Jim Defoe. Upon Sellers’ giving notice of their election and selection as aforesaid, this Agreement shall be deemed amended to require Sellers, promptly upon Buyer’s request, to execute Buyer’s standard pre-construction purchase agreement and to post a cash pre[-]construction deposit. Buyer shall have no obligation to ‘hold’ any units for Sellers during this thirty (30) day period, and if any unit desired to be purchased by Sellers pursuant to this subparagraph 14(B) has been committed to another buyer prior to Sellers’ fixing their selections as aforesaid, Sellers shall not be entitled to purchase such unit. Buyer is not required to offer these units with boat slips.”

The parties closed on the sale of the property two days after executing the contract; GHD began clearing the property and constructing marine improvements on the waterfront. GHD also submitted its development plans to the City of Orange Beach (“the City”) and received zoning and site-plan approval of those plans. However, according to GHD, “[i]n the months following closing, the real estate market at Orange Beach suffered a dramatic decline.” Due to the decline in the real-[1234]*1234estate market, GHD had not begun construction on the development by the time of this appeal.

Lattof filed a complaint in the Baldwin Circuit Court (“the trial court”) on October 28, 2011, alleging that GHD had not performed in accordance with paragraph 14(A) of the contract and asking the trial court to interpret the provisions of the contract and to determine that a reasonable time for performance had elapsed. On January 10, 2012, GHD filed an answer and a counterclaim in which it raised several defenses and asked the trial court to declare the contract “illegal and void”; Lattof filed an answer to the counterclaim on February 1, 2012.

Lattof filed a motion for a summary judgment on April 20, 2012, arguing that, because the contract did not include a specific time for GHD to perform in accordance with paragraph 14(A) of the contract, as a matter of law, GHD had been required to perform within a reasonable time and that that time had elapsed. On June 6, 2012, GHD filed a motion for a summary judgment on its counterclaims and an opposition to Lattofs motion for a summary judgment. In its motion for a summary judgment, GHD contended that the contract violated § 11-52-30 et seq., Ala.Code 1975, and the City’s subdivision regulations and was, therefore, void. Alternatively, GHD requested that the trial court find that paragraph 14(A) was void for vagueness or that that section of the contract contained a condition precedent that had not yet occurred.

The trial court entered two judgments on June 22, 2012 — one granting Lattofs motion for a summary judgment and the other denying GHD’s motion for a summary judgment. GHD filed a motion to alter, amend, or vacate both judgments on July 18, 2012; the trial court denied GHD’s postjudgment motion on July 19, 2012. On July 25, 2012, GHD filed an appeal with our supreme court. However, Lattof filed in the trial court a motion for further relief, seeking entry of judgment and/or requesting that the trial court require the posting of a supersedeas bond on August 20, 2012; GHD filed a motion in opposition on August 28, 2012. The appeal was transferred to this court pursuant to § 12-2-7(6), Ala.Code 1975. On November 1, 2012, this court reinvested the trial court with jurisdiction to “consider and enter, if it ch[ose], a final judgment that addresses all claims and forms of relief requested”; Lattof filed a renewed motion for further relief, seeking entry of judgment and/or requesting that the trial court require the posting of a supersedeas bond.

The trial court entered a judgment on November 1, 2012, finding, among other things, that GHD had breached the contract, that a reasonable time for performance in accordance with paragraph 14(A) had elapsed, and that the sale of the property did not violate state statutes or the City’s regulations regarding the sale of subdivided property.

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Cite This Page — Counsel Stack

Bluebook (online)
127 So. 3d 1230, 2013 WL 2130932, 2013 Ala. Civ. App. LEXIS 123, Counsel Stack Legal Research, https://law.counselstack.com/opinion/grand-harbour-development-llc-v-lattof-alacivapp-2013.