Hubble v. O'CONNOR

684 N.E.2d 816, 291 Ill. App. 3d 974, 225 Ill. Dec. 825, 1997 Ill. App. LEXIS 664
CourtAppellate Court of Illinois
DecidedSeptember 19, 1997
Docket1-96-1095
StatusPublished
Cited by61 cases

This text of 684 N.E.2d 816 (Hubble v. O'CONNOR) is published on Counsel Stack Legal Research, covering Appellate Court of Illinois primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Hubble v. O'CONNOR, 684 N.E.2d 816, 291 Ill. App. 3d 974, 225 Ill. Dec. 825, 1997 Ill. App. LEXIS 664 (Ill. Ct. App. 1997).

Opinion

JUSTICE ZWICK

delivered the opinion of the court:

Plaintiffs, Ron and Barbarann Hubble, appeal from a grant of summary judgment entered by the circuit court in favor of defendants, Paul O’Connor and Lynda Simon. In their complaint, plaintiffs (sometimes hereinafter sellers) sought to recover damages from the defendants (sometimes hereinafter purchasers) for an alleged breach of a contract to purchase certain residential real estate. Only count I of the sellers’ complaint, that count relating to a breach of contract claim, is before us on appeal.

The facts of this case revolve around a common real estate transaction involving the purchase of a condominium. The written contract at issue contained an attorney review provision, which allowed the contract to be voided if either sellers’ or purchasers’ attorney gave written notice of disapproval within five business days after formation of the contract. Although the agreement was signed and tendered by defendant-purchaser Paul O’Connor to seller-plaintiff Ron Hubble, the parties continued to discuss modifications to the agreement past the disapproval period. Two weeks after the disapproval period had expired, purchasers’ attorney gave notice that he was invoking the disapproval clause. The parties filed cross-motions for summary judgment and, on February 28, 1996, the circuit court entered judgment in favor of the purchasers and against the sellers.

The contract is a standardized real estate sales agreement widely used in the Chicago area. The ágreement was executed on June 8, 1993. The attorney disapproval clause within the agreement states in pertinent part:

"This contract is contingent upon the approval hereof as to form by the attorney(s) for Buyer and Seller within 5 Business days after Seller’s acceptance of this contract. Unless written notice of disapproval is given within the time period specified above, then this contingency shall be deemed waived and this contract will remain in full force and effect.
If written notice of disapproval is given within the time period specified above, this contract shall be null and void and the earnest money shall be returned to the Purchaser.”

The contract also provides that notice of disapproval may be given or accepted by either of the parties’ attorneys.

Although the attorney disapproval clause expired by its own terms on June 15, 1993, the parties agreed on that day to extend the disapproval period to June 22, 1993. This extension was memorialized in a letter from purchasers’ attorney to sellers’ attorney. Sellers’ attorney returned the letter to purchasers’ attorney with his signature, formally approving the extension.

On June 17, 1993, purchasers’ attorney faxed to the sellers a "proposed Rider to the contract for review and comment.” On June 18, 1993, sellers’ attorney submitted modifications to the purchasers’ proposed rider. On June 21, 1993, purchasers’ attorney incorporated the sellers’ modifications into the rider and faxed the rider back to sellers’ attorney. At this point in time the rider was finalized but had not yet been executed.

On June 22, 1993, the last day of the contract disapproval period, sellers’ attorney telephoned purchasers’ attorney to inquire whether purchasers would agree to delaying the possession date. He suggested that the sellers lease the property back from purchasers for a short period of time following the closing. Purchasers’ attorney responded by proposing trading the later possession date for a change in the form of the earnest money. Sellers’ attorney agreed to the change in a telephone call that same day.

On June 30, 1993, sellers’ attorney received the last rider from purchasers’ attorney. This rider incorporated all the changes discussed on June 22, 1993, but left the exact possession date blank. Upon receipt of the document, sellers’ attorney telephoned the oifice of purchasers’ attorney and was instructed that the possession date to be inserted into the blank was "on or before August 23,' 1993.” The rider, however, remained unexecuted.

On July 6, 1993, in a letter written to sellers’ attorney, purchasers’ attorney summarily stated he had "withdrawn attorney approval.” He requested that the sellers return to his clients their earnest money.

On August 7, 1993, sellers put the property back on the market. The property ultimately sold at the end of January 1994 for $315,000, an amount $15,000 less than provided in the June 8 contract. Sellers claimed in their complaint that, in addition to selling the property at a lower price, they were forced by purchasers’ breach to incur costs of $15,698.83 in carrying the property from August 1993 through January 1994.

In seeking summary judgment, sellers asserted that the purchasers had not exercised the attorney disapproval clause in a timely manner and that the attempt to exercise it on July 6, 1993, was designed simply to exculpate purchasers from their binding contractual obligation to purchase the property. Sellers noted that purchasers conceded during discovery that part of their motivation in having their attorney withdraw his approval for the agreement was because defendant Paul O’Connor had a business opportunity to relocate from Chicago to Budapest, Hungary. Sellers also included in the motion excerpts from the deposition of defendant Lynda Simon in which she stated that, although she had not actually signed the June 8, 1993, real estate agreement itself, she had given permission to Paul O’Connor to sign her name to the contract. An examination of the sales agreement shows that both Lynda Simon and Paul O’Connor are identified as "purchasers.” Lynda’s signature, however, is followed by the annotation "by Paul.”

Purchasers filed their cross-motion for summary judgment asserting both that the attorney disapproval provision had been properly exercised and that the Illinois Fraud Act (the Statute of Frauds) (740 ILCS 80/0.01 et seq. (West 1994)) prevented sellers from enforcing the agreement. Purchasers based their Statute of Frauds argument on the fact that Lynda Simon had never actually signed the sales agreement and that it had been signed only by Paul. They argued that the contract was therefore incomplete and therefore could not be enforced against either Lynda or Paul. They also argued that the sellers’ failure to sign the proposed rider, which had been negotiated by the attorneys but ultimately disapproved by their attorney prior to its execution, precluded contract formation.

As we have noted, the trial court granted purchasers’ summary judgment motion and denied sellers’ motion. The court ruled that the riders and letters written by purchasers’ attorney constituted disapproval and thus voided the contract.

In Illinois, summary judgment is governed by the provisions of section 2—1005 of the Code of Civil Procedure. 735 ILCS 5/2—1005 (West 1994). Summary judgment is recognized to be a drastic remedy, which is properly granted only where the movant’s right to it is clear and free from doubt. Vicorp Restaurants v. Corinco Insulating Co., 222 Ill. App. 3d 518,

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Cite This Page — Counsel Stack

Bluebook (online)
684 N.E.2d 816, 291 Ill. App. 3d 974, 225 Ill. Dec. 825, 1997 Ill. App. LEXIS 664, Counsel Stack Legal Research, https://law.counselstack.com/opinion/hubble-v-oconnor-illappct-1997.