Linda LaRocca, Broker/Operating Partner of Keller Williams Realty Services v. Jeffrey E. Elliot Jr, Jason Lambert and Casey Lambert

Louisiana Court of Appeal·Decided March 29, 2023·No. 2022CA0764·Unknown

Opinion

NOT DESIGNATED FOR PUBLICATION

STATE OF LOUISIANA

COURT OF APPEAL

FIRST CIRCUIT

2022 CA 0764

LINDA LAROCCA, BROKER/OPERATING PARTNER OF KELLER WILLIAMS REALTY SERVICES

VERSUS

JEFFREY E. ELLIOT, JR., JASON LAMBERT and CASEY LAMBERT

C' j MAR 2 9 2073 Judgment Rendered:

On Appeal from the 21st Judicial District Court In and for the Parish of Tangipahoa State of Louisiana

Trial Court No. 2020- 0003338

Honorable Charlotte H. Foster, Judge Presiding

Sandra Destin Sims Attorney for Defendants/ Appellants, Hammond, Louisiana Jason and Casey Lambert

Regina S. Wedig Attorney for Defendant/Appellee, Amite, Louisiana Jeffrey E. Elliot, Jr.

J. Ronald Ward, Jr. Attorney for Plaintiff/Appellee, Mandeville, Louisiana Linda LaRocca

I d BEFORE: WELCH, PENZATO, AND LANIER, JJ.

L-ai'r/ eiLJ )

PENZATO, J.

This is an appeal from a summary judgment rendered in a concursus proceeding filed by a real estate broker in connection with a purchase agreement for real property. The prospective sellers, Jason and Casey Lambert, appeal the award of attorney fees to the prospective buyer, Jeffrey E. Elliot, Jr. Mr. Elliott answered the appeal. For the reasons that follow, we dismiss both the appeal and the answer to the appeal.

FACTS AND PROCEDURAL HISTORY

On October 11, 2020, the Lamberts and Mr. EIliot entered into a residential

purchase agreement for Mr. Elliot to purchase the Lamberts' property located at 39628 River Oaks Drive in Ponchatoula, Louisiana. In accordance with the purchase

agreement, Mr. Elliot paid a deposit in the amount of $5, 000. 00, which was held in

escrow by the listing broker, Linda LaRocca.

The purchase agreement provided for an inspection and due diligence period

of fourteen calendar days. Mr. Elliot had the property inspected and submitted an inspection report identifying deficiencies and desired remedies to the Lamberts. The Lamberts responded to the inspection report in the time provided in the purchase

agreement, electing to correct certain deficiencies and increasing the purchase price by $ 10, 000. 00. Pursuant to the terms of the purchase agreement, Mr. Elliot had

seventy- two hours from the date of the Lamberts' response to the inspection report to accept their response, to accept the property in its current condition, or to

terminate the purchase agreement. The purchase agreement further provided that:

Upon the BUYER' S failure to respond to the SELLER' S Response by the time specified or the BUYER' S electing, in writing, to terminate this Agreement, the Agreement shall be automatically, with no further action required by either party, ipso facto null and void except for return of Deposit to the BUYER.

Mr. Elliot did not respond to the Lamberts' response to the inspection report

within the seventy -two-hour period. However, after the expiration of the seventy -

two-hour period, Mr. Elliot signed the inspection report indicating that he did not accept the Lamberts' response and declared the purchase agreement null and void.

Mr. Elliot sought return of his $ 5, 000. 00 deposit, which the Lamberts refused.

Ms. LaRocca, as broker/operating partner of Keller Williams Realty Services, instituted this concursus action to adjudicate the ownership of the $ 5, 000. 00 deposit

made by Mr. Elliot, naming as defendants Mr. Elliot and the Lamberts. The

Lamberts filed an answer to the petition for concursus. According to the Lamberts,

because Mr. Elliot exceeded the seventy -two-hour deadline in which to cancel the purchase agreement, they were entitled to the $ 5, 000.00 deposit. The Lamberts further contended that they were entitled to attorney fees and costs, as provided in the purchase agreement.

Mr. Elliot answered the petition for concursus, averring that the deposit should be returned to him. Additionally, Mr. Elliot asserted a reconventional demand against Ms. LaRocca, contending that Ms. LaRocca breached her duty to return the deposit to him pursuant to the terms of the purchase agreement and was liable for

damages, including attorney fees and costs, as authorized by the purchase agreement. Mr. Elliot also raised cross claims against the Lamberts, alleging they were liable for damages, including 10% of the purchase price as stipulated damages, attorney fees, and costs, as authorized by the purchase agreement.

Ms. LaRocca answered the reconventional demand and raised an exception of

no cause of action, contending that the reconventional demand was an improper procedural action to take in a concursus proceeding.' The Lamberts answered the

cross claims, denying their liability for damages.

Mr. Elliot then filed a motion for summary judgment, attaching thereto his affidavit; the purchase agreement; the inspection report, including the Lamberts'

Ms. LaRocca' s exception was not accompanied by a proposed order requesting that the exception be set for hearing. See La. District Court Rules, R. 9. 8. Therefore, the exception remains outstanding.

response thereto; and the affidavit of his attorney and her invoices. Mr. Elliot argued that the purchase agreement explicitly provided that when the buyer ( Mr. Elliot) failed to respond to the proposal of the seller ( the Lamberts) in response to the

buyer' s inspection demands, the agreement automatically became null and void, except for the return of the deposit to the buyer. According to Mr. Elliot, there was no dispute that he failed to respond within the required time period, and thus he was

entitled to the return of the $ 5, 000. 00 deposit. He further argued that the Lamberts

breached the purchase agreement when they failed to return his deposit, and,

pursuant to the purchase agreement, were liable for stipulated damages in the amount

of 10% of the purchase price, a reasonable amount of attorney fees, and all costs. Finally, Mr. Elliot argued that Ms. LaRocca did not disburse the deposit to him, despite the reasonable interpretation of the contract she used and was supposed to

understand, and was thus liable for Mr. Elliot' s damages.

The Lamberts filed a response in opposition to Mr. Elliot' s motion for

summary judgment. The Lamberts argued therein that Mr. Elliot' s rejection of their response to the inspection report after the deadline was not an option specifically defined in the purchase agreement, and thus, did not automatically result in the return of Mr. Elliot' s deposit. The Lamberts further argued that if Mr. Elliot was entitled

to the return of his deposit because the purchase agreement was rendered " null and

void," all other terms of the purchase agreement were also void, including the provisions for damages and costs. The Lamberts requested that the trial court deny the motion for summary judgment and " grant any additional relief deemed appropriate."

Ms. LaRocca also opposed the motion for summary judgment. She argued

that there was neither a basis for damages against her under the facts of the transaction nor a basis for attorney fees against her as a result of her filing a concursus proceeding. Ms. LaRocca requested that the trial court resolve the dispute

over the deposit, as it was the only valid claim before the court.

Following a hearing on February 28, 2022, the trial court found that Mr.

Elliot' s lack of response to the Lamberts' counteroffer to the inspection report within

the seventy -two-hour period was a rejection of the counteroffer that terminated the purchase agreement, and thus, Mr. Elliot was entitled to the return of his deposit.

The trial court further found that the termination of the agreement did not nullify the entire thing," and that Mr. Elliot was entitled to attorney fees and costs. The

trial court denied Mr. Elliot' s claim for damages in the amount of 10% of the

purchase price, finding that the Lamberts did not default, but proposed a

counteroffer. Finally, the trial court indicated that Ms. LaRocca acted appropriately, and was not liable for damages.

4n March 10, 2022, the trial court signed a judgment in accordance with its

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Linda LaRocca, Broker/Operating Partner of Keller Williams Realty Services v. Jeffrey E. Elliot Jr, Jason Lambert and Casey Lambert, (La. Ct. App. 2023).

Linda LaRocca, Broker/Operating Partner of Keller Williams Realty Services v. Jeffrey E. Elliot Jr, Jason Lambert and Casey Lambert (Linda LaRocca, Broker/Operating Partner of Keller Williams Realty Services v. Jeffrey E. Elliot Jr, Jason Lambert and Casey Lambert) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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