Howard v. Youngman

81 S.W.3d 101, 2002 Mo. App. LEXIS 780, 2002 WL 559462
CourtMissouri Court of Appeals
DecidedApril 16, 2002
DocketED 79283, ED 79302, ED 79303, ED 79710
StatusPublished
Cited by33 cases

This text of 81 S.W.3d 101 (Howard v. Youngman) is published on Counsel Stack Legal Research, covering Missouri Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Howard v. Youngman, 81 S.W.3d 101, 2002 Mo. App. LEXIS 780, 2002 WL 559462 (Mo. Ct. App. 2002).

Opinion

KATHIANNE KNAUP CRANE, Judge.

This appeal involves multiple contract and tort issues arising from the parties’ treatment of the waiver provisions of a financing contingency clause in a standard residential real estate contract. Plaintiff contracted to purchase a home from the defendant homeowners but did not timely apply for the loan described in the contingency clause and obtained different financing. The homeowners treated their contract with plaintiff as terminated, contracted to sell the home at a higher price to a different buyer, also a defendant, and refused to close on plaintiffs contract. Plaintiff, who took the position that he had waived the financing contingency by not making a timely loan application, filed a lawsuit against homeowners, the subsequent buyer, and the homeowners’ real estate broker to declare and enforce his rights under the contract and to recover damages for breach of contract and tor-tious interference with contract. Defendants responded with counterclaims, cross-claims, and a third-party claim against plaintiffs real estate broker.

The trial court entered summary judgment against plaintiff, holding that the contract had terminated and that plaintiff *107 had not met his burden with respect to any of the elements of his tortious interference claim against the homeowners’ real estate broker. It awarded the homeowners and the subsequent buyer costs and attorney’s fees. By summary judgment or dismissal, the trial court denied relief on the remaining counts of the homeowners’ counterclaim against plaintiff, the homeowners’ third-party claim against plaintiffs real estate broker, and the subsequent buyer’s counterclaim against plaintiff for tortious interference with the subsequent buyer’s contract.

The buyer, homeowners, and subsequent buyer each appeal from the trial court’s judgment. We reverse the summary judgment entered against plaintiff and remand. We also reverse the awards of attorney’s fees. In all other respects, we affirm.

FACTUAL BACKGROUND

On July 7, 1998, plaintiff, Kenneth Howard, entered into a contract with defendants, T. French Youngman and Beverly Youngman, for the purchase of the Young-mans’ home in Creve Coeur, Missouri. The parties used the St. Louis Association of Realtors Residential Form # 2090, dated 9/97. The contract contained the following financing provision:

4. METHOD OF FINANCING
Conventional, FHA or VA Financing. Buyer agrees to apply for a loan, as described below, within two days after “Acceptance Deadline” date. If Buyer does not apply within that time for the loan described below, Buyer waives this financing contingency. Buyer agrees to do all things necessary, including but not limited to, the execution of loan applications and other instruments, and to cooperate fully in order to obtain the financing necessary to complete this transaction. If Buyer does not obtain a written commitment for a loan on the same terms as described below, or waive this contingency in writing, by 5:00 p.m. on July 1998 (or any written extension), this contract is terminated and earnest deposit will be returned to Buyer subject to paragraph 12, less any expenses incurred by or in behalf of Buyer. If Buyer wants to accept a loan commitment on teims other than described below, he must either notify Seller in writing of his acceptance of different terms, or waive the financing contingency in writing by the loan commitment deadline. If commitment is not obtained or waived by the loan commitment deadline, Buyer expressly waives any right to close this sale and acknowledges Seller’s right to sell this property to another party. Any loan commitment requiring any of buyer’s property to be sold and/or closed shall not be considered a commitment hereunder. (Note: Failure to “lock in”, if available, may constitute a waiver by Buyer of the financiny continyency.) Buyer to provide (and authorizes lender to provide) Seller and agents a copy of the loan commitment. Buyer to pay mortgage insurance, if required.

The “Acceptance Deadline” was July 7, 1998. The described loan was a conventional fixed or adjustable rate loan for 80% of the sale price with the initial interest rate not to exceed the prevailing market rate and an amortization of 15 or 30 years. The contract set closing on July 30, 1998.

“Gundaker Realtors/BHG” (defendant Gordon A. Gundaker Real Estate Co., Inc. (Gundaker)) was shown on the contract as the “selling agency” and Marilyn Middle-kauff as the “selling agent”. The contract provided that the “selling agent” was the “buyer’s agent,” acting on Howard’s behalf as buyer. “Coldwell Banker” (defendant Coldwell Banker Ira E. Berry, Inc. (Cold-well Banker)) was shown as the Young- *108 mans’ “listing agency.” Defendant Patricia Waelter was the Youngmans’ “listing agent.”

Howard did not apply for any loan by July 9, 1998. On July 10, 1998, Howard applied for a loan from Carrollton Bank in a lesser amount than described in the contingency clause and obtained a loan commitment for the lesser amount on July 14, 1998. Accordingly, Howard did not obtain a written loan commitment for a loan on the same terms as described in the contract. Further, he did not notify the Youngmans of his acceptance of different terms or execute a written waiver of the contingency by 5:00 p.m. on July 24, 1998.

On July 27, 1998, Waelter informed Howard’s agent, Middlekauff, that Howard no longer had a contract for the property. Waelter told the Youngmans that Howard was “out of contract.” On July 28, 1998, David Goings entered into a contract with the Youngmans to purchase the property for $15,000 more than Howard had contracted to pay. Goings’ contract showed Gundaker and Patrick Tierney as his “buyer’s agents.”

On July 30, the Youngmans notified Howard, in a letter prepared by their attorney, that they believed their contract with Howard had terminated on July 24, 1998. Howard appeared for closing, but the Youngmans did not. That same day Howard filed an action against the Young-mans for specific performance. As a result of the litigation, Goings never purchased the home, but he has been leasing it from the Youngmans.

PROCEDURAL BACKGROUND

Howard’s Claims

Howard subsequently filed a second amended petition in which he sought declaratory judgment, injunction, and specific performance against the Youngmans and Goings with respect to the real estate contract (Count I), damages for breach of the real estate contract from the Young-mans (Count II), and damages for tortious interference with that contract from Wael-ter and Coldwell Banker (Count III). The Youngmans, Goings, Waelter, and Coldwell Banker each filed motions for summary judgment on the counts in which they were defendants.

The Youngmans’ Claims

The Youngmans filed a counterclaim against Howard seeking a declaratory judgment in their favor with respect to the real estate contract (Count I). They also sought damages from Howard on a re-spondeat superior theory for tortious interference with the Howard contract by Gundaker (Count II) and for negligent misrepresentation by Gundaker (Count III). They further sought damages from Howard for breach of the Howard contract (Count IV), and for abuse of process (Count V).

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Cite This Page — Counsel Stack

Bluebook (online)
81 S.W.3d 101, 2002 Mo. App. LEXIS 780, 2002 WL 559462, Counsel Stack Legal Research, https://law.counselstack.com/opinion/howard-v-youngman-moctapp-2002.