Stoll v. Grimm

681 N.E.2d 749, 1997 Ind. App. LEXIS 761, 1997 WL 335039
CourtIndiana Court of Appeals
DecidedJune 19, 1997
Docket09A05-9608-CV-332
StatusPublished
Cited by23 cases

This text of 681 N.E.2d 749 (Stoll v. Grimm) is published on Counsel Stack Legal Research, covering Indiana Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Stoll v. Grimm, 681 N.E.2d 749, 1997 Ind. App. LEXIS 761, 1997 WL 335039 (Ind. Ct. App. 1997).

Opinion

OPINION

SHARPNACK, Chief Judge.

Richard and Kathryn Stoll (collectively the “sellers”) appeal the entry of judgment in favor of Fred and Evelyn Grimm (collectively the “purchasers”), ordering specific performance of an agreement for the sale of real estate, abatement of the agreed purchase price, and payment of attorney fees. The sellers raise three issues for our review, which we restate as:

(1) whether the trial court properly ordered specific performance of the contract;
(2) whether the trial court properly ordered a reduction of the purchase price to represent damages under constructive fraud; and
(3) whether the trial court properly awarded attorney fees in favor of the purchasers.

We affirm in part and reverse in part.

Facts 1

The evidence most favorable to the judgment follows. The sellers owned the Tall *752 Sycamore Campground (the “campground”) in Cass County, Indiana. In 1992, the sellers decided to sell the campground and contacted Harold Goehring to act as their consultant. On July 21, 1992, the sellers entered into an agreement giving Goehring, who served as an authorized agent for Resorts International, Inc., the exclusive right to sell the campground. After the sellers signed the agreement, Goehring prepared a video of the campground to show prospective buyers. Goehring prepared the video with the sellers’ assistance; Richard explained some features of the campground, and Kathryn described shopping opportunities in the area.

Along with the video, Goehring prepared a brochure that described the campground and included some pictures. Although the sellers provided Goehring with the specific information relating to the campground, they did not take the pictures. The brochure contained several pictures of the electrical units. The brochure also included a description of the “electrical services” in the campground. The electrical services were detailed as follows:

“a. within the campground we have the main power line with six transformers
b. 109 sites with 15 amp recepticles [sic] and 30 amp lines
12 sites with 30 amp recepticles [sic]
39 sites in club area with 15 amp recepti-cales [sic] and 30 amp lines
NOTE' — I have had three electricians check the lines and verify that the lines are safe for 30 amp usage.”

Record, p. 385. The sellers neither reviewed the brochure in its final form nor approved its use. However, the sellers knew that the brochure had been prepared for prospective buyers to view.

In late 1992, the purchasers saw an advertisement which listed the campground for sale. As a result, the purchasers contacted Goehring and arranged to visit the campground. Later, the purchasers received the video and brochure from Goehring.

On May 25, 1993, the purchasers and sellers entered into a “Buy and Sell Agreement” (the “agreement”) for the sale of the campground that set the purchase price at $250,-000 with a downpayment of $50,000. Record, p. 131. The parties agreed that the down-payment would be paid from the proceeds of a personal injury settlement that the purchasers anticipated receiving at a later date. In addition, the agreement required the purchasers to make annual payments of $10,050 in 1994, $10,050 in 1995, $15,000 in 1996, $19,950 in 1997, and $21,100 in 1998. The sellers took possession of the campground after signing the agreement. The agreement indicated that Goehring was acting as the sellers’ agent. Neither party was represented by an attorney.

In addition to the sale of the campground, the agreement also included the sale of the sellers’ trailer which belonged to the sellers and was subject to a monthly loan payment. 2 Under the agreement, the purchasers were required to pay the trailer payments until the down payment was made, at which time the sellers would give the purchasers a credit from the downpayment.

One provision in the agreement set forth the warranties of the seller. This provision (the “warranty provision”) provided in relevant part that “a. There are not restrictions, easements, zoning or governmental regulations that would prevent the reasonable use of the property for eampground/RV park purposes .... c. Seller has informed Buyer of any hidden or latent defects of which Seller has knowledge.” Record, p. 132. Another provision (the “inspection provision”) warned the buyer as follows:

“29. CAUTION: READ CAREFULLY. By signing the Agreement, Buyer is representing that the Buyer is aware that inspection services of buildings and building *753 components and systems are commercially available at a nominal fee, and that the premises have been examined by Buyer and/or inspectors hired by buyer as fully as Buyer desires. Buyer agrees that no representations have been made by Seller, or any real estate salesperson, regarding any aspect of the premises or this sale transaction except as set forth in this agreement or in a separately signed writing which is entitled ‘guarantee’ or Var-ranty’. Buyer hereby acknowledges receipt of a copy of this agreement....
/x/ Fred H. Grimm”

Record, p. 134.

The purchasers received the $50,000 from the personal injury settlement in November of 1994, and later deposited that amount into a purchase account. The agreement called for the downpayment to be made at the closing or when the buyers received the personal injury settlement. As a closing date was never set or provided for, the buyers paid the amounts due into a purchase account at Salin Bank and Trust Company. The purchasers also deposited $10,050 into the purchase account in 1994, which represented the payment under the agreement due in 1994. On March 3,1995, the purchasers deposited $10,000 into the purchase account, representing the payment under the agreement due in 1995. 3 In addition, the purchasers began making the trailer payments in the amount of $174.75 per month in May of 1993, and continued to do so thereafter.

Soon after the purchasers took possession of the campground, they began to experience problems with the electrical system, including approximately six fires in the electrical panel boxes that supplied the trailers with electricity. As a result of these continuous problems with the electrical system, the purchasers contacted Krysevig Electric in the spring of 1995 to replace portions of the electrical system. The cost of the work totaled $27,238.

Although the purchasers tried to contact the sellers many times to arrange a closing date, the date was never set. On March 13, 1995, the purchasers filed a complaint, seeking specific performance under the agreement, an abatement or reduction of the purchase price, an assurance that the property had no environmental problems, a transfer of title for the trailers, and attorney fees.

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Bluebook (online)
681 N.E.2d 749, 1997 Ind. App. LEXIS 761, 1997 WL 335039, Counsel Stack Legal Research, https://law.counselstack.com/opinion/stoll-v-grimm-indctapp-1997.