Stepp v. Outdoor World Corp.

18 Va. Cir. 106, 1989 Va. Cir. LEXIS 363
CourtWestmoreland County Circuit Court
DecidedMarch 23, 1989
StatusPublished
Cited by2 cases

This text of 18 Va. Cir. 106 (Stepp v. Outdoor World Corp.) is published on Counsel Stack Legal Research, covering Westmoreland County Circuit Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Stepp v. Outdoor World Corp., 18 Va. Cir. 106, 1989 Va. Cir. LEXIS 363 (Va. Super. Ct. 1989).

Opinion

By JUDGE JOSEPH E. SPRUILL, JR.

Gary E. Stepp (Buyer) has petitioned for specific performance of a contract for the sale of a marina in Westmoreland County, Virginia. Outdoor World Corporation (Seller) has refused to consummate the sale because the survey contemplated by the contract was not completed nor approved by the parties by a "time of the essence" closing date. Eight witnesses testified at a hearing on October 21, 1988, during which twenty-five exhibits were received in evidence. Depositions of additional witnesses were submitted. Nonetheless, there is surprisingly little conflict in the evidence.

The Court finds the evidence, and the inferences reasonably drawn therefrom, to be substantially as follows. The parties in late 1987 and early 1988 had engaged in preliminary negotiations for the sale and purchase of the marina property. As the parties reached substantial agreement, Buyer selected Paul Scott, a lawyer in Fredericksburg, to represent him in closing. On March 3, 1988, Scott had a telephone conversation with Seller’s counsel, [107]*107Bruce Morgan, in which they agreed upon the items to be accomplished in preparation for closing, and they divided these tasks between them. Seller, in this conversation, according to Scott, assumed responsibility for the survey. A contract dated March 10, 1988, was subsequently executed by Seller and Buyer in which closing was scheduled for April 1, with an extension to April 15.

Thomas W. Grill, Vice President of Outdoor World, thereafter selected Arthur Whittaker, certified surveyor, to survey the property. Mr. Grill arranged to meet Mr. Whittaker on the site on March 18, 1988, at which time Buyer was present and the boundaries of the property to be sold and the location of a proposed 100-foot easement were designated. On this occasion, discussions about narrowing the 100-foot easement in the area of the swimming pool and gasoline tanks took place between the parties within the hearing of the surveyor. No sense of urgency regarding the completion of the survey was communicated to the surveyor at that time. The surveyor was contacted several times thereafter by Buyer to determine the progress of the survey. During this time, the surveyor was beset by physical ailments and at one stage his equipment failed. There apparently was no contact with the surveyor by Seller at any time after March 18.

On April 15 a preliminary draft of the survey was delivered to Buyer and upon Buyer’s request revisions were made and a revised plat was delivered April 18.

On April 5, Buyer was called to a meeting with Seller in Pennsylvania at which Buyer was informed that Seller had serious zoning problems with the campgrounds it was retaining, and that closing could not occur until these problems were resolved. Seller proposed an interim leasing " or management arrangement. Seller later agreed that it would not assert these zoning issues as a defense in this case.

On April 12, Seller’s counsel, Morgan, wrote Buyer’s counsel, Scott, claiming that it was impossible to close by April 15. No mention was made of the survey in this communication. On April 15, Scott replied to Morgan, taking issue with the ostensible zoning problems or the need for any additional permits in order to close, and called for closing on April 21. Scott at this time had received none of the closing documents that were to have been [108]*108prepared by Morgan, nor did he ever receive them. Scott felt added time was needed by Seller to prepare for closing.

On April 18, Morgan again wrote Scott repeating his need for additional permits and declining to close. On the same date, Morgan wrote Buyer stating that conditions of closing were not met, no closing would occur, and ordering Buyer to vacate the premises by April 22. In neither of Morgan’s April 18 letters was the survey mentioned.

On March 11, the day after the contract between the parties was reached, Seller transferred by deed the property which is the subject of this proceeding to OW Acquisition Corporation. No mention of this was ever communicated by Seller to Buyer, and the Court remains uncertain of the significance of this fact.

Does the absence of the survey excuse performance by Seller under the circumstances'?

The Court will not place sole responsibility for the survey on Seller. It is not disputed, however, that Seller’s on-site representative, Grill, selected the surveyor and arranged the initial meeting with him. Stepp testified that Grill warned him not to rush the surveyor, lest it have an adverse effect. Seller did not overtly delay or obstruct the progress of the survey. Having selected the surveyor, however, Seller must bear at least some responsibility for the fact that the surveyor was unable to produce a plat sooner than he did. At no time prior to April 18, 1988, did Seller inform Buyer that the survey was critical and unless it was in hand and agreed upon prior to April 15, the closing would be aborted.

Any delay in obtaining the survey was clearly not the fault of Buyer who has appeared diligent in every respect in making preparations to close this transaction in accordance with the provisions of the contract.

The survey that was produced by Whittaker on April 18 has been attacked in many ways to show it is not in conformity with local ordinances in one way or another and/or that it is not recordable in its present form. These complaints, in the total context of this case, seem to be of relatively minor substance and are easily remedied without in any way increasing or diminishing the stakes [109]*109of either party to the agreement. Indeed, it could scarcely be denied that if both parties wanted to close, these problems could be resolved with a minimum of effort.

It is significant that throughout the case, there has been no contention about the location of the boundaries shown on the plat.

In Pennsylvania State Shopping Plaza, Inc. v. Olive, 202 Va. 862 (1962), the Court concluded that the purchaser was trying to avoid its contractual obligations by not making a bona fide effort to comply with the contract, and the Court there held that the purchaser was not excused from its obligations. Similarly, here, though Seller’s behavior is more subtle, this Court is unable to find in Seller’s activities during this critical period a bona fide effort to prepare for closing in any respect whatever.

Further, the contract gives only the Buyer the right to terminate if the survey is not prepared and agreed upon.

The fact remains, however, that on April 15, the date scheduled for closing, no final survey was available and closing did not occur. Buyer was dependent upon a surveyor selected by Seller. The time between the contract date, March 10, and the closing date, April 15, was, by local standards at least, short, especially for a transaction of this nature, and the surveyor was unable to operate at full speed and efficiency for reasons beyond the control of Buyer. Although the contract makes both parties responsible for the survey costs, Buyer alone paid this expense. Up to the time of closing, Seller claimed other problems would prevent the closing. The survey was available on April 18. Under all of these circumstances, the Court does not feel that the lack of the survey on April 15 should entitle the Seller to abandon his obligations under the contract, especially since Seller must assume at least a substantial part of the responsibility for obtaining the survey.

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Bluebook (online)
18 Va. Cir. 106, 1989 Va. Cir. LEXIS 363, Counsel Stack Legal Research, https://law.counselstack.com/opinion/stepp-v-outdoor-world-corp-vaccwestmorelan-1989.