Morton v. Heathcock

913 So. 2d 662, 2005 WL 2219466
CourtDistrict Court of Appeal of Florida
DecidedSeptember 14, 2005
Docket3D04-1121
StatusPublished
Cited by13 cases

This text of 913 So. 2d 662 (Morton v. Heathcock) is published on Counsel Stack Legal Research, covering District Court of Appeal of Florida primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Morton v. Heathcock, 913 So. 2d 662, 2005 WL 2219466 (Fla. Ct. App. 2005).

Opinion

913 So.2d 662 (2005)

Greg MORTON, Appellant/Cross-appellee,
v.
Mark R. HEATHCOCK and Liliana C. Heathcock, Appellees/Cross-appellants.

No. 3D04-1121.

District Court of Appeal of Florida, Third District.

September 14, 2005.
Rehearing Denied November 17, 2005.

*664 Merlin & Hertz and Robert J. Merlin, Miami, for appellant/cross-appellee.

Brigham Moore and Amy Brigham Boulris, Miami, for appellees/cross-appellants.

Before FLECTHER, RAMIREZ, and WELLS, JJ.

WELLS, Judge.

Defendant/Seller, Greg Morton, appeals from a prevailing party fee award entered in an action to enforce a residential real estate contract, claiming the award was unsupported by competent substantial evidence. Plaintiffs/Buyers, Mark and Liliana Heathcock, cross-appeal denial of their 57.105 fee request. We reverse the denial of the 57.105 fee request and remand for an evidentiary hearing to determine the amount of the fee to be awarded.

On May 8, 2001, Greg and Arlene Morton contracted to sell their home to Mark and Liliana Heathcock. As required by the contract, the Heathcocks escrowed $50,000 as a down payment. Among other things, the Mortons agreed to provide the information needed to satisfy an existing mortgage from the sales proceeds; to close two open building permits on the property; and to convey title free of all liens, encumbrances, exceptions, and qualifications. Closing was to occur on or before June 29, 2001.

Shortly after executing the purchase and sale contract, the Mortons provided the Heathcocks with a copy of a marital settlement agreement that they had executed only the week before. In pertinent part, that agreement required the Mortons to sell their marital home and to transfer title free of encumbrances by using the closing proceeds to satisfy the existing mortgage which was then in foreclosure:

It is the Husband's sole liability and responsibility to ensure that the mortgage which is currently a lien on the property is released to enable the property *665 to be sold without being encumbered by the mortgage lien....
At the time of closing, the mortgage shall be satisfied from the proceeds of the sale of the marital home....

In the weeks leading up to the closing, the Heathcocks' attorney, Mark Boulris, communicated regularly with real estate counsel for the Mortons to obtain information needed to close, including a pay-off figure for the mortgage. Because Greg Morton was attempting to settle the foreclosure action, he demanded that the Heathcocks refrain from direct contact with the mortgagee. Rather than providing the Heathcocks with a pay-off figure, Morton secured a court order in the foreclosure action releasing the mortgage and enabling "the [Mortons] to transfer title... free and clear of the [mortgagee's] lien," upon posting of $152,000 in cash from the closing proceeds.

The sale did not, however, close as agreed. Two days before the scheduled closing, the Mortons notified the Heathcocks that they were increasing the sales price by $50,000 purportedly because the Heathcocks had interfered with settlement negotiations with the mortgagee.[1] The Heathcocks rejected this demand advising the Mortons that they expected the closing to proceed on June 29 as agreed and that from the closing proceeds they would (1) make the court-ordered $152,000 payment to release the mortgage lien; (2) pay those sums required by the marital settlement agreement to be paid from the proceeds where pay-off figures had been provided; and (3) satisfy unpaid property taxes for 1999. They also advised the Mortons that they would retain funds escrowed for payment of 2000 taxes and that they would hold back $3,000 from the closing proceeds to cover the cost of closing out two building permits that Greg Morton had agreed, but failed, to resolve.

On June 29, the Heathcocks and their attorney, and Arlene Morton and her attorney, appeared for the scheduled closing. Neither Greg Morton nor his attorney appeared or tendered the documents required to close. The Heathcocks immediately served formal notice of default and demanded return of their $50,000 deposit. While Arlene Morton was willing to return the Heathcocks' deposit, Greg Morton refused to do so.[2]

On August 24, 2001, the Heathcocks brought suit to recover their deposit and for their expenses related to the failed sale. Rather than answering this relatively straight-forward claim, Greg Morton sought to disqualify the Heathcocks' attorney on the grounds that he had represented the Heathcocks in the underlying real estate transaction. After a four month delay, Morton finally answered the complaint and asserted a five-count counterclaim against the Heathcocks for breach of contract; damages in the amount of $50,000 for failure to give notice of and an opportunity to cure "title defects"; slander of title stemming from a lis pendens placed on the property upon commencement of suit; abuse of process related to the filing of the lis pendens; and malicious prosecution *666 related to the filing of the lis pendens. He also asserted two cross-claims against Arlene Morton for breach of the marital settlement agreement and for indemnification claiming that Arlene was "solely responsible for maintaining the subject property," and that her failure to do so was "the cause" of the Heathcocks' refusal to close the sale. He also filed a three-count third party complaint against the Heathcocks' attorney for slander of title, abuse of process, and malicious prosecution related to the filing of a lis pendens.

The gist of Morton's claims against the Heathcocks was not that the mortgagee had refused to settle its foreclosure action against the Mortons because of interference by the Heathcocks as Morton had previously claimed, but that the Heathcocks had become contractually obligated to take title subject to the Mortons' mortgage. According to Morton: the mortgage on the marital home was a title defect about which the Heathcocks had to notify him; he was notified of his own mortgage (the title defect) when the Heathcocks provided him with a copy of their title commitment; this notification triggered Standard A of the real estate purchase and sale agreement[3] which, notwithstanding his representations to a circuit court and everyone's understanding that this mortgage was to be satisfied from the closing proceeds, obligated him to satisfy this mortgage, or cure this purported title defect, within 30 days; when he failed to satisfy the mortgage within 30 days, the Heathcocks had five days under Standard A to notify him in writing whether the cure period would be extended or whether the agreement was terminated, failing which the Heathcocks waived the defect and were bound to take title subject to this defect.[4]

Following extensive discovery, court filings, hearings, and delays, summary judgments ultimately were entered in the Heathcocks' favor on all claims and counter-claims. Along the way, Morton was presented with at least two opportunities to resolve this entire matter by returning the Heathcocks' deposit with little or no additional expense in the form of fees and costs.

In mid-January 2003, the Heathcocks' requests for damages and a fee award were heard. Prior to the hearing, the Heathcocks' attorneys filed affidavits attesting to the nature and extent of their representation and the amount charged for *667 each attorney's services.

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Cite This Page — Counsel Stack

Bluebook (online)
913 So. 2d 662, 2005 WL 2219466, Counsel Stack Legal Research, https://law.counselstack.com/opinion/morton-v-heathcock-fladistctapp-2005.