Heredia v. Sandler

605 N.E.2d 1212, 1993 Ind. App. LEXIS 22, 1993 WL 7569
CourtIndiana Court of Appeals
DecidedJanuary 20, 1993
Docket92A05-9205-CV-154
StatusPublished
Cited by7 cases

This text of 605 N.E.2d 1212 (Heredia v. Sandler) is published on Counsel Stack Legal Research, covering Indiana Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Heredia v. Sandler, 605 N.E.2d 1212, 1993 Ind. App. LEXIS 22, 1993 WL 7569 (Ind. Ct. App. 1993).

Opinion

*1214 BARTEAU, Judge.

Arthur and Peggy Heredia sought return of the earnest money given in connection with an offer to purchase the home of Neil and Carol Sandler. The trial court granted summary judgment in favor of Heredias and ordered the $1,000 earnest money to be returned to them. However, the court vacated this order on Sandlers’ Motion to Correct Error. Heredias appeal, arguing that summary judgment was properly granted in their favor.

We affirm, holding that material issues of fact remain, making summary judgment inappropriate.

FACTS

Sandlers listed their home for sale with Roth & Wehrly Realtors. Their listing agent was Edward LaRocque. The house was shown to Heredias by Janet Gerke, a sales associate of Bradley Realty. The Heredias offered to purchase the house for $125,000. Their offer was contingent upon, among other things, obtaining the required financing, the right to inspect the real estate and the contingency that the lower level be free and dry of water leaks. The offer, along with $1,000 earnest money, was submitted to Gerke, who submitted it to LaRocque, who in turn gave it to the Sandlers. Sandlers submitted a counteroffer to Heredias which differed from the Heredias’ offer only in that the purchase price would be $133,000.

The Heredias accepted the counter-offer and proceeded to have the house inspected by James Goodard who prepared a building analysis report. (R. 120-126). Among the problems the inspection revealed were some signs of basement dampness and that the heat exchanger on the furnace was cracked and the furnace would have to be replaced. Several miscellaneous problems were also noted.

According to the Purchase Agreement, if the inspection report revealed a defect in the condition of a system described in the Agreement, Heredias were to give the San-dlers a copy of the report within five days of receiving it. Sandlers were then required to repair the defect before closing. Generally, either party could terminate the agreement if Sandlers were unable or unwilling to cure the defect(s).

Within five days after receiving the inspection report, Heredias prepared an “Inspection Amendment” and gave it to Gerke, who in turn gave it to Sandlers. The document was abstracted from the inspection report by Heredias and contains a laundry list of “repairs” Heredias wanted Sandlers to do before closing, including replacing the furnace. 1 Sandlers met with Heredias to discuss the alleged defects shortly after receiving the Amendment. Initially, Sandlers refused to do any of the requested repairs except to replace the furnace. Neil Sandler received a bid of $1,485 for a furnace which would, according to a reputable contractor, be sufficient for the house. Sandlers also offered to give that money to the Heredias to use toward the purchase of a higher quality furnace if they so desired.

Not satisfied with this offer, Heredias, through counsel, contacted LaRocque, the listing agent, and informed him that they wanted their earnest money returned to them. The earnest money was not returned. Sandlers, also through counsel, agreed to replace the furnace and to repair exhaust fans, the smoke detectors and the garage. For the first time, the Sandlers objected to the “Inspection Amendment” and argued they were entitled to receive a copy of the actual inspection report. According to Sandlers, they were not required to make any repairs because the five days in which the Heredias had to provide them *1215 with the inspection report had expired. Heredias continued to refuse to close the transaction. Sandlers sold the home to a third party.

Sandlers initiated this lawsuit by suing Heredias for liquidated damages of 5% of the purchase price ($6,650), attorney fees and costs. Heredias counter-sued for return of their earnest money, attorney fees and cost. The trial court granted Heredias’ motion for summary judgment and ordered Sandlers to return the deposit and to pay attorney fees and costs. The trial court then vacated the judgment by granting Sandlers’ motion to correct error. Heredi-as appeal from the grant of the motion to correct error.

DISMISSAL

Although Sandlers’ have made no formal motion to dismiss, they argue in their brief that the appeal should be dismissed; therefore, we first address this issue. Sandlers assert that, in essence, Heredias are appealing the denial of their motion for summary judgment, which is not a final appealable order. According to Sandlers, we should dismiss this appeal because Heredias are attempting to pursue an interlocutory appeal without following the required procedure in Ind.Appellate Rule 4(B)(6). Sandlers also argue they are entitled to appellate attorney fees because of Heredias’ failure to follow the proper procedure for bringing an interlocutory appeal.

Heredias appeal the grant of a Motion to Correct Error. Therefore, this appeal is governed by Ind.Trial Rule 59 and App.R.

4. Trial Rule 59(F) provides in part:

Any modification or setting aside of a final or an appealable final order following the filing of a motion to correct error shall be an appealable final judgment or order.

Sandlers admit that the grant of summary judgment would have been an appealable final order. The setting aside of the grant of summary judgment is therefore appeal-able according to T.R. 59(F). This is reiterated in App.R. 4(A), which provides in part:

Appeals may be taken by either party from all final judgments of circuit, superior, probate, criminal, juvenile, county and where provided by statute for municipal Courts. When a Motion to Correct Error is used a ruling or order by the trial court granting or denying the same shall be deemed a final judgment, and an appeal may be taken therefrom.

(emphasis supplied). Therefore, Sandlers’ argument fails and Heredias may pursue this appeal. Sandlers’ request for appellate attorney fees likewise fails.

SUMMARY JUDGMENT

At the heart of this dispute is whether Heredias had a right under the Purchase Agreement to terminate the Agreement and refuse to buy Sandlers’ home. Construction of an unambiguous written contract is generally a question of law for the court, making summary judgment particularly appropriate in contract disputes. Bicknell Minerals, Inc. v. Tilly (1991), Ind.App., 570 N.E.2d 1307, reh’g denied, trans. denied. Where the terms of a contract are clear and unambiguous, the terms of the contract are conclusive and this court merely applies the contractual provisions. Jackson v. DeFabis (1990), Ind.App., 553 N.E.2d 1212. A contract is ambiguous only when reasonably intelligent people could honestly find its provisions susceptible of more than one interpretation. Kitchen Jewels, Inc. v. Beck (1987), Ind.App., 513 N.E.2d 1246.

This dispute centers on § 16.01 of the Purchase Agreement, which provides:

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Cite This Page — Counsel Stack

Bluebook (online)
605 N.E.2d 1212, 1993 Ind. App. LEXIS 22, 1993 WL 7569, Counsel Stack Legal Research, https://law.counselstack.com/opinion/heredia-v-sandler-indctapp-1993.