Stone Investment Co. v. Estate of Robinson

82 So. 3d 631, 2011 WL 3925593, 2011 Miss. App. LEXIS 544
CourtCourt of Appeals of Mississippi
DecidedSeptember 6, 2011
DocketNo. 2009-CA-01971-COA
StatusPublished

This text of 82 So. 3d 631 (Stone Investment Co. v. Estate of Robinson) is published on Counsel Stack Legal Research, covering Court of Appeals of Mississippi primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Stone Investment Co. v. Estate of Robinson, 82 So. 3d 631, 2011 WL 3925593, 2011 Miss. App. LEXIS 544 (Mich. Ct. App. 2011).

Opinion

GRIFFIS, P.J.,

for the Court:

¶ 1. Stone Investment Company, Inc. brought an action against the Estate of Arlan Robinson and William Head d/b/a William Head Realty to recover the earnest-money deposit and other damages that resulted from the breach of a real-estate contract. The Estate and Head responded with their claims to the earnest-money deposit. The chancellor ruled that Stone Investment had breached the contract and forfeited the earnest-money deposit. The chancellor awarded the earnest money deposit to the Estate and Head. We find no error and affirm.

FACTS

¶ 2. Arlan Robinson was the owner of approximately twenty acres of land located at the corner of Highways 26 and 49 in Stone County, Mississippi.

¶ 3. In 2001, Arlan executed his Last Will and Testament. The will named his wife, Martha Robinson, as executrix. Paragraph VI of the will reads:

I do hereby direct my Executrix, at the discretion of my attorney, Honorable Herbert J. Stelly, Sr., to select an auctioneer who, in the opinion and discretion of Honorable Herbert J. Stelly, Sr., shall be best suited for purposes of selling the 20 somewhat acres of Property situated at the corner of Highway 26 and 49 in Stone County, Mississippi next to McDonald’s. I desire that said property be auctioned off and that every effort be made to obtain the highest and best dollar for said property. Honorable Herbert J. Stelly, Sr., is given discretion and is to guide and advise my Executrix with regard to the selection of such auctioneer and the conditions and provisions in which such auction is to be held as well as the fee to be realized by such auctioneer for such services. Out of the proceeds of such auction I direct that any sums realized from the sale of such property be used to retire any obli[633]*633gations which may exist against the Denson property, then such funds shall be applied toward payment of the mortgage on the home situation at 35 Walton Road •with any monies left owed, if any, to be placed in an interest bearing account for the benefit of my son, Dalton; to be received by him at 21 years of age.

¶ 4. Arlan died on June 6, 2005.

¶ 5. On August 25, 2005, Herbert J. Stelly Sr. executed a Complaint Requesting Probate of Will and Appointment of Executrix on behalf of Martha. The complaint asked the chancery court to probate the decedent’s will and to appoint Martha as executrix, “upon taking the oath of office as by law required.” It also asked that her appointment as executrix be without the necessity of bond.

¶ 6. On October 5, 2005, Chancellor Margaret Alfonso executed an Order Allowing Will to Probate. The order admitted the will to probate, appointed Martha as executrix, and waived appraisal and bond. The order also held that “the Clerk of this Court is directed to issue letters of administration to the Executrix, Martha Robinson, upon her taking the oath of office as by law required.”

¶ 7. By letter dated October 11, 2005, Stelly sent both the complaint and the executed order to the Stone County Chancery Clerk. These pleadings were filed by the clerk on October 12, 2005.

¶ 8. On October 11, 2005, Tadd Parsons, an attorney for Stone Investment, sent a letter to Stelly. The letter read as follows:

Bennie Bell at the First National Bank of Wiggins told us you represent the Estate of Arlan Robinson. He also told us that Mrs. Robinson was interested in disposing of the property on Highway 49 and Highway 26, the property being located at Hunters Walk and another parcel. Stone Investment Company, Inc. may be interested in purchasing this property!;] and if your client has a survey of the property, if you would fax them or mail them to us, I will ask them to look at it and let you know whether or not they are interested.

On October 24, 2005, Stelly responded and sent a copy of the survey to Jack Parsons.

¶ 9. On January 17, 2006, Martha signed an Auction Listing Agreement with William Head Realty. This agreement was to facilitate the auction and sale of the property, consistent with the terms of the will. This agreement provided that William Head Realty, as auctioneer, was entitled to receive a ten percent commission from the sale. The agreement also provided that an auction would be held on or about March 14, 2006.

¶ 10. To prepare for the auction, William Head Realty prepared and distributed a “Buyer’s Guide.” The buyer’s guide was issued to all prospective bidders, including Stone Investment. The buyer’s guide included a “Terms of Sale” provision, which provided that a ten percent nonrefundable deposit, based on the contract price, was to be paid by the prospective purchaser after being awarded the bid. The buyer’s guide also included surveys that divided the property into smaller parcels. The survey of the parcel, which is the subject of this dispute (Parcel 1), indicated a sewer easement.

¶ 11. The auction was held on March 14, 2006. Stone Investment offered the highest bid on Parcel 1, in the amount of $312,400. Stone Investment tendered a check, dated March 14, 2006, in the amount of $31,240, to William Head Realty for the required earnest-money deposit for the purchase of Parcel 1. The auctiori also included other parcels.

¶ 12. After the auction, Stone Investment executed a Purchase Contract. The [634]*634purchase contract was not dated. The purchase contract identified “Martha Robinson” as the Seller and “Stone Investments” as the Purchaser, and it contained the following provisions:

1. THE PURCHASER OFFERS TO BUY THE PROPERTY located in Stone County, Mississippi, commonly known as Wiggins, MS Parcel # 1 and legally described as: See Attached Legal Description(s) subject to any of the following existing matters: ... easements of record ..., if any, for the sum of $312,400....
3. PURCHASER HAS EXAMINED THIS PROPERTY and accepts it in its present “AS IS” condition, and with all faults. Purchaser accepts all faults of the property whether known or unknown, presently existing or that may hereafter arise.... Purchaser in examining and inspecting this property has not relied upon any representations made by the Seller, but is relying solely on his own personal examination and inspection of the property....
6. WARRANTY DEED AND CERTIFICATE OF TITLE shall promptly be furnished by the party responsible for the cost [Purchaser to pay all costs] and shall be prepared by a mutually agreed upon attorney, a certificate of title insurance may be obtained from a title insurance company.... Seller shall cure any title defects to the satisfaction of the title insurance company that the Purchaser may obtain an owner’s title insurance policy subject only to standard exceptions and other matters specifically stated in this contract....
9. CLOSING DATE shall be April 13, 2006, but may be sooner by mutual consent, CLOSING DATE MAY BE EXTENDED up to thirty (30) days if[:] (A) Mutually Agreed to, or (B) title defects are reported which may be cured,....
11. PURCHASER UPON EXECUTION OF THIS AGREEMENT DEPOSITS $31,240, to be held by Agency [ (William Head Realty) ] in a non-interest bearing account, which deposit constitutes a good faith deposit to be applied on the Purchase Price. If this is not accepted, or the title is not insurable as stated above, then the deposit shall be refunded, otherwise the deposit shall be retained by the Agency.

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Cite This Page — Counsel Stack

Bluebook (online)
82 So. 3d 631, 2011 WL 3925593, 2011 Miss. App. LEXIS 544, Counsel Stack Legal Research, https://law.counselstack.com/opinion/stone-investment-co-v-estate-of-robinson-missctapp-2011.