MARLY CARO, ETC. VS. WILLIAM PEREZ(C-7-15, HUDSON COUNTY AND STATEWIDE)

CourtNew Jersey Superior Court Appellate Division
DecidedJune 26, 2017
DocketA-2210-15T3
StatusUnpublished

This text of MARLY CARO, ETC. VS. WILLIAM PEREZ(C-7-15, HUDSON COUNTY AND STATEWIDE) (MARLY CARO, ETC. VS. WILLIAM PEREZ(C-7-15, HUDSON COUNTY AND STATEWIDE)) is published on Counsel Stack Legal Research, covering New Jersey Superior Court Appellate Division primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
MARLY CARO, ETC. VS. WILLIAM PEREZ(C-7-15, HUDSON COUNTY AND STATEWIDE), (N.J. Ct. App. 2017).

Opinion

NOT FOR PUBLICATION WITHOUT THE APPROVAL OF THE APPELLATE DIVISION This opinion shall not "constitute precedent or be binding upon any court." Although it is posted on the internet, this opinion is binding only on the parties in the case and its use in other cases is limited. R.1:36-3.

SUPERIOR COURT OF NEW JERSEY APPELLATE DIVISION DOCKET NO. A-2210-15T3

MARLY CARO, on behalf of A LIMITED LIABILITY COMPANY or CORPORATION TO BE FORMED,

Plaintiff-Respondent,

v.

WILLIAM PEREZ,

Defendant-Appellant. _________________________________

Submitted May 10, 2017 – Decided June 26, 2017

Before Judges Alvarez and Manahan.

On appeal from Superior Court of New Jersey, Chancery Division, Hudson County, Docket No. C-7-15.

The Abraham Law Firm, LLC, attorneys for appellant (Markis M. Abraham, on the briefs).

Vincent J. La Paglia, attorney for respondent.

PER CURIAM

Defendant William Perez appeals from an order for specific

performance entered in favor of plaintiff Marly Caro following a

bench trial. We affirm. We discern the following facts from the trial record. In

April 2013, plaintiff approached defendant and advised him that

she was interested in purchasing defendant's property located at

364-366 Palisades Avenue, Jersey City, New Jersey (the property).

Predicated upon that conversation, a contract of sale was prepared

by plaintiff's attorney, Vincent La Paglia. The contract provided

for a purchase price of $750,000, comprised of a $75,000 deposit,

financing of $525,000, and a cash payment due at closing of

$150,000.1 Paragraph 6 of the contract recited a mortgage

contingency clause.

The [b]uyer agrees to make a good faith effort to obtain a first mortgage loan upon the terms listed below. The [b]uyer has until 60 [days after conclusion of inspection contingency] to obtain a commitment from a lender for this mortgage loan or to agree to buy the [p]roperty without this loan. If this is not done before this deadline, and any agreed-upon extensions, either party may cancel this [c]ontract.

After approval from defendant's attorney, Joseph Greco, both

parties signed the contract on June 7, 2014.

1 While the contract indicated that the deposit was previously paid, plaintiff and La Paglia both testified the deposit money remained in La Paglia's trust account. Plaintiff was not aware of the deposit payment status until December 2014.

2 A-2210-15T3 Plaintiff subsequently applied for a loan and La Paglia

ordered a title report. The title report revealed issues that had

to be addressed prior to the closing.

Sometime in July or August 2014, after plaintiff sold property

she owned in Brazil, she advised defendant of her intention to

purchase the property without mortgage financing. Defendant did

not object and told plaintiff to speak with her attorney.

By letter dated August 25, 2014, La Paglia corresponded to

Greco that "[m]y client advises she should have mortgage commitment

within the next two (2) weeks. Subject to clear title, we should

be in a position to close." The letter further stated that the

preliminary title binder disclosed judgments against defendant,

as well as two open mortgages on the property, both of which were

in foreclosure.

In November 2014, defendant listed the property for sale with

a broker and placed a sign on the property. After observing the

sign, plaintiff removed it and contacted her attorney. Plaintiff

stated that she also contacted defendant.

Defendant's attorney mailed and faxed a letter, dated

November 24, 2014, which declared the contract "cancelled and null

and void for failure of the buyer to make the required deposit of

escrow monies and passage of time without furnishing a mortgage

commitment." The next day, via email, plaintiff's attorney

3 A-2210-15T3 rejected defendant's attempt to terminate the contract and advised

that plaintiff intended to proceed on an all-cash basis. Further,

plaintiff's letter stated that "the reason this matter has not

closed is [defendant's] inability, at this stage, to satisfy the

title requirements[.]" Defendant refused to close title and

entered into a sales contract with a third party for $1 million.

On January 9, 2015, plaintiff filed a three-count complaint

seeking specific performance of a contract for the sale of real

estate. Additionally, plaintiff pled breach of contract and

requested restraints. On the same day, plaintiff filed a notice

of lis pendens.2 Defendant filed an answer with a counterclaim on

February 17, 2015, alleging tortious interference with a

prospective economic advantage, tortious interference with

contractual relation, and unlawful interference with contractual

relations.3 Plaintiff filed an answer to the counterclaim on March

4, 2015.

A bench trial was held on December 8, 2015, before Judge

Hector Velazquez. At trial, the judge heard testimony from

plaintiff, La Paglia, and Stephen Flatlow, the attorney who

conducted title services, on plaintiff's behalf. Defendant

2 The lis pendens is not part of the record on appeal. 3 Defendant's motion for summary judgment, plaintiff's opposition, and the court order denying summary judgment are not part of the record on appeal.

4 A-2210-15T3 testified on his own behalf. Defendant moved for a directed

verdict after plaintiff rested, which was denied. After both

parties rested, the judge rendered an oral opinion. In his

opinion, the judge held that plaintiff was not in material breach

for her failure to make a timely deposit. The judge also dismissed

defendant's counterclaim.

In addition to his oral opinion, the judge issued a seven-

page written opinion, reaffirming that (1) plaintiff was not in

material breach for her failure to make the deposit pursuant to

the contract; and determining that (2) the contract did not require

plaintiff to give written notice of her election to proceed without

a mortgage; and (3) equity dictates the court to compel defendant

to specifically perform under the terms of the contract and deliver

a deed at the time and place scheduled for closing. As a result,

the judge entered a judgment of specific performance in favor of

plaintiff on December 22, 2015. All other counts in the complaint

were dismissed and any request for compensatory damages was denied.

This appeal followed.4

Defendant raises the following points on appeal:

4 Following the filing of the notice of appeal, the judge entered an order staying the enforcement of the judgment pending appeal and ordering defendant to post a bond.

5 A-2210-15T3 POINT I

THE TRIAL COURT ERRED IN GRANTING SPECIFIC PERFORMANCE BECAUSE THE CONTRACT OF SALE WAS VOID AND UNENFORCEABLE AND THE DEFENDANT'S TERMINATION WAS VALID.

A. [PLAINTIFF] COMMITTED A MATERIAL BREACH OF CONTRACT BY FAILING TO MAKE THE DEPOSIT. THEREFORE, THE CONTRACT WAS UNENFORCEABLE AND VALIDLY TERMINATED.

1. [PLAINTIFF] DID NOT PROVIDE CONSIDERATION FOR THE CONTRACT TO PURCHASE THE PROPERTY THEREFORE THE CONTRACT WAS VOID.

2. [PLAINTIFF'S] FAILURE TO MAKE THE DEPOSIT WAS A MATERIAL BREACH OF CONTRACT.

B.

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MARLY CARO, ETC. VS. WILLIAM PEREZ(C-7-15, HUDSON COUNTY AND STATEWIDE), Counsel Stack Legal Research, https://law.counselstack.com/opinion/marly-caro-etc-vs-william-perezc-7-15-hudson-county-and-statewide-njsuperctappdiv-2017.