Solartech Renewables, LLC v. Vitti

2017 NY Slip Op 8574, 156 A.D.3d 995, 66 N.Y.S.3d 704
CourtAppellate Division of the Supreme Court of the State of New York
DecidedDecember 7, 2017
Docket524628
StatusPublished
Cited by4 cases

This text of 2017 NY Slip Op 8574 (Solartech Renewables, LLC v. Vitti) is published on Counsel Stack Legal Research, covering Appellate Division of the Supreme Court of the State of New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Solartech Renewables, LLC v. Vitti, 2017 NY Slip Op 8574, 156 A.D.3d 995, 66 N.Y.S.3d 704 (N.Y. Ct. App. 2017).

Opinion

McCarthy, J.R

Appeal from an order of the Supreme Court (Mott, J.), entered May 17, 2016 in Ulster County, which, among other things, granted defendant Irene C. Vitti’s motion for summary judgment dismissing the complaint against her.

Plaintiff was interested in participating in a project for generators of solar power, but the project application required proof of exclusive control over the intended generation site. To obtain such an interest in a site, plaintiff contacted a real estate broker. The broker contacted defendant Irene C. Vitti (hereinafter defendant), who owned a parcel of real property in the desired area. On July 11, 2012, plaintiff sent the broker an email with an attached offer letter. The letter stated that it was an offer to purchase defendant’s property for a certain price, noted plaintiff’s intention to use the property to develop solar power, requested a 60-day due diligence and exclusivity period commencing on July 16, 2012, stated that the parties would complete a formal purchase agreement during the first 60-day period, requested the option to purchase a second 60-day period at a set rate, and asked that defendant confirm the agreement and the two 60-day exclusivity periods by signing the letter.

On July 12, 2012, defendant sent the broker an email noting that, per their conversation with plaintiff’s representatives, defendant’s proposed side letter was attached. She asked that the broker transmit it to plaintiff and let her know if they are receptive to it. That same day, defendant sent an email directly to plaintiff’s representative with the proposed side letter attached, asking for plaintiff’s comments on it. The proposed side letter stated that defendant had reviewed plaintiff’s offer to purchase her property and that defendant was “prepared to accept the terms of [plaintiff’s] offer and sign the [l]etter, conditioned on” three specified modifications. The proposed side letter contained defendant’s typed name, but not her signature, and asked plaintiff to confirm agreement to these terms by signing thereon.

On July 13, 2012, defendant informed the broker that she rejected plaintiff’s offer to purchase her property, and the broker said she would inform plaintiff. Defendant also personally informed plaintiff that she was not proceeding with the proposed sale to plaintiff. At some point that same day, plaintiff signed the proposed side letter and transmitted it to defendant. Despite plaintiff’s insistence that defendant was contractually bound by their agreement, defendant entered into an exclusivity agreement with another solar-generating company.

Plaintiff commenced this action alleging that defendant breached their contract and breached the covenant of good faith and fair dealing. Defendant moved for summary judgment dismissing the complaint against her. Plaintiff cross-moved for, among other things, summary judgment. Supreme Court denied plaintiff’s cross motion for summary judgment, granted defendant’s motion and dismissed the complaint against her. Plaintiff appeals. 1

To prevail on her motion for summary judgment, defendant was required to demonstrate the absence of any material triable issue of fact. Specifically, she contends that she did not enter into a contract with plaintiff and, if she did, any alleged contract was void based on the statute of frauds. If the written language of an alleged contract is ambiguous and a court cannot interpret the document without resorting to extrinsic evidence, credibility comes into play and the parties’ intentions present a factual matter that must be decided by the factfinder (see Agosta v Fast Sys. Corp., 136 AD3d 694, 694 [2016]; Brighton Inv., Ltd. v Har-Zvi, 88 AD3d 1220,1222-1223 [2011]). To prove that no binding contract was formed, defendant was required to show that there was no meeting of the minds, or that an offer was revoked before it was accepted.

To form a contract, the offeree must agree to all of the material terms of the offer (see Stonehill Capital Mgt. LLC v Bank of the W., 28 NY3d 439, 448 [2016]); if the purported acceptance is qualified with conditions, “it is equivalent to a rejection and counteroffer” (Lamanna v Wing Yuen Realty, 283 AD2d 165, 166 [2001] [internal quotation marks and citation omitted], lv denied 96 NY2d 719 [2001]; see Jericho Group, Ltd. v Midtown Dev., L.P., 32 AD3d 294, 299 [2006]). “Rejection by counteroffer extinguishes the offer and renders any subsequent acceptance thereof inoperative” (Jericho Group, Ltd. v Midtown Dev., L.P., 32 AD3d at 299 [citation omitted]). The plain language of defendant’s proposed side letter constituted a rejection of plaintiff’s offer and possibly created a counteroffer based on the newly suggested terms. When read together to determine whether the parties formed a contract providing for an exclusivity period (see Post Hill, LLC v E. Tetz & Sons, Inc., 122 AD3d 1126, 1127 [2014]), the language of the offer, proposed side letter and cover emails is ambiguous, requiring the court to look at extrinsic evidence to determine the parties’ intent (see Brighton Inv., Ltd. v Har-Zvi, 88 AD3d at 1222-1223).

Despite this ambiguity that would otherwise require a trial, defendant would still be entitled to summary judgment if she established as a matter of law that the alleged counteroffer was withdrawn before it was accepted. Given the conflicting information from defendant, the broker and plaintiff’s representatives concerning the timing of events, a triable question of fact exists regarding whether plaintiff accepted a pending counteroffer, thereby creating a binding contract, or whether defendant had already revoked the alleged counteroffer, thereby precluding its acceptance and the formation of a contract.

Regardless of these factual questions concerning the existence of a contract, defendant is entitled to summary judgment if she established that the statute of frauds rendered the alleged contract void. Under the statute of frauds applicable to contracts concerning real property, an interest in real property can only be created, granted or assigned by a written document, subscribed by the person granting the interest (see General Obligations Law § 5-703 [1]). “A contract for . . . the sale[ ] of any real property, or an interest therein, is void unless the contract or some note or memorandum thereof, expressing the consideration, is in writing, subscribed by the party to be charged” (General Obligations Law § 5-703 [2]). “Because an option to purchase an interest in real property is in effect a conditional contract for a future conveyance of land, a contract that creates such an option is within the [s]tatute of [flrauds” and must be in writing to be valid (Kaplan v Lippman, 75 NY2d 320, 325 [1990]).

Plaintiff contends that the contract did not involve an interest in land, but was a personal contract that merely involved an exclusivity period. This argument is belied by plaintiffs offer letter, which contained the subject line “Offer to Purchase Real Estate” and stated in its first sentence that it was an offer to purchase the referenced property, along with the acreage and purchase price. The conditions in defendant’s proposed side letter related to the purchase of property and did not mention any exclusivity period. Because the alleged contract concerns a sale of, or interest in, real property, the statute of frauds applies (see General Obligations Law § 5-703 [1], [2]).

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Cite This Page — Counsel Stack

Bluebook (online)
2017 NY Slip Op 8574, 156 A.D.3d 995, 66 N.Y.S.3d 704, Counsel Stack Legal Research, https://law.counselstack.com/opinion/solartech-renewables-llc-v-vitti-nyappdiv-2017.