Steele v. Goettee

542 A.2d 847, 313 Md. 11, 1988 Md. LEXIS 91
CourtCourt of Appeals of Maryland
DecidedJune 27, 1988
Docket130, September Term, 1987
StatusPublished
Cited by7 cases

This text of 542 A.2d 847 (Steele v. Goettee) is published on Counsel Stack Legal Research, covering Court of Appeals of Maryland primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Steele v. Goettee, 542 A.2d 847, 313 Md. 11, 1988 Md. LEXIS 91 (Md. 1988).

Opinion

MARVIN H. SMITH, Judge,

Specially Assigned.

This case concerns an in gross contract for the sale of real estate and the determination of a trial court in a declaratory judgment action brought by the buyer that the seller should specifically perform the contract. We shall reverse the judgment of the Court of Special Appeals contained in Goettee v. Steele, 71 Md.App. 520, 526 A.2d 626 (1987), and thus shall affirm the decree of the trial court that the seller specifically perform the contract.

Aside from the issue of whether this was a sale in gross, the facts are undisputed. Those which we shall relate are gleaned from the findings of fact of the trial court or are uncontroverted facts taken from the record. Under Maryland Rule 886 when an action has been tried by the lower court without a jury, this Court will review the case upon both the law and the evidence, “but the judgment of the lower court will not be set aside on the evidence unless clearly erroneous and due regard will be given to the opportunity of the lower court to judge the credibility of the witnesses.” There is no contention that the trial judge erred in finding that this was an in gross contract.

Elvira B. Chaney died on February 6, 1985. John G. Goettee qualified as the personal representative under her will on March 8, 1985. She owned a home in Annapolis at Giddings and Forbes Avenues where she had lived for a number of years. Goettee is both an accountant and a lawyer. He has been practicing law since about 1964 and began representing Mrs. Chaney in accounting matters back in the 1950’s.

Goettee testified that once he had qualified as personal representative he obtained plats and a tax map of Mrs. Chaney’s property. The tax map showed approximate di *14 mensions of 100 feet across the front for the two lots owned by Mrs. Chaney and approximately 150 feet down the sides. From a realtor he obtained a plat prepared by a surveyor in 1952 that showed an area of approximately 17,500 square feet.

Goettee procured an appraisal of subject property under date of March 25, 1985. It estimated the fair market value at $261,000.

Goettee requested of an Annapolis surveyor a feasibility study of the property in question. He advised Goettee on April 16, 1985:

“The configuration of property shown was obtained from deed found in Liber WMB 22/282 with plat recorded at WMB 22/269. There appears, however, to be a boundary problem and/or deed discrepancy that can only be resolved by a field survey. City records indicate a ‘gap’ in boundaries and deed plotting likewise reflect a possible gap. Field investigation indicates possession possibly different from title lines.”

On April 24, 1985, the realtor with whom Goettee ultimately listed the property requested a survey. In a contract dated May 14, 1985, Goettee listed this property with that realtor stating the area was approximately 15,650 square feet. The asking price was $395,000. The petitioners here were excluded as potential buyers from that listing as was Rev. Lance, an adjoining landowner.

Petitioners Marshall K. Steele, III, and Stephen E. Faust are physicians who practice in partnership. They own a building directly across the street from the Chaney property. They proposed erection of a building on the Chaney property, if they could purchase it, of about 14,000 square feet, the size of the building occupied by them. Faust paced off the Chaney property down two sides and concluded that the lot contained approximately 21,000 square feet, a conclusion he did not communicate to his attorney. Using information which he said he procured from the realtor to whom we have previously referred, this attorney prepared *15 for Steele and Faust a contract with Goettee for the sale of the subject property. In that contract the property is described as:

“16,000 square feet, more or less, together with improvements thereon located at 716 Giddings Avenue, Forbes Street, Annapolis Maryland, as further described in the Land Records of Anne Arundel County, at Liber, folio.”

The contract called for a sale price of $279,500 with a down payment of $10,000. This contract was submitted to Goettee on May 10, 1985. On May 28 Goettee returned the contract and check, stating, “[a]s explained, we expect to receive more than $18.00 per square foot for this property and have listed it with a real estate broker for $395,000. We may not receive a contract for this amount, but we thought we would wait a reasonable time to see what surfaces.”

In late June Dr. Faust called Goettee by telephone, learned that no other offers had been made, expressed his and Dr. Steele’s interest in purchasing the property, and asked what price Goettee really wanted. Goettee said $300,000. Dr. Faust testified:

“I was using a phone with a long extension cord and I walked into an examining room with a window looking out on this piece of property and I said, now look, Mr. Goettee, I want to be completely clear about this. What we are talking about is this corner property with the fence around it that I am looking out of my window at, right now. Is that right?
“And then he said, yes, that’s right.
“And I said, what you are selling and what we are buying is the area inside this fence, is that right?
“And he said, yes.
“And I said, well, I am going to put something in the contract to that effect and initial it and we’ll send it over with a change in the purchase to three hundred thousand dollars.
*16 “And he said, fine.”

Goettee confirmed this conversation.

The contract was resubmitted with the purchase price changed to $300,000 and a provision added at the end:

“This contract is additionally contingent upon the completion of a survey showing that the actual boundaries of the property are within two (2) feet of the fence surrounding the tract.”

A contract of sale was signed by all parties on July 3, 1985.

Goettee’s deposition was read into evidence. He was questioned about the contingency:

“Q Now let me ask you a question, what did you understand that last contingency to mean? That is the contingency on the last page of the contract?
“A It only meant to me that he was endeavoring to buy the whole tract.
“Q What was the tract that you were selling?
“A What was surrounded by the fence. I [sic] was my thought at that time that the contract was signed.
“Q That was the piece that you believe was owned by Mrs. Chaney that extended from the Lance property all the way down to Forbes Street and from Giddings Avenue back to the fence behind Grauls Market?
“A Right.
“Q The entire corner parcel?
“A Right.”

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Bluebook (online)
542 A.2d 847, 313 Md. 11, 1988 Md. LEXIS 91, Counsel Stack Legal Research, https://law.counselstack.com/opinion/steele-v-goettee-md-1988.