Tarlo v. Robinson

118 A.D.2d 561, 499 N.Y.S.2d 174, 1986 N.Y. App. Div. LEXIS 54423
CourtAppellate Division of the Supreme Court of the State of New York
DecidedMarch 3, 1986
StatusPublished
Cited by26 cases

This text of 118 A.D.2d 561 (Tarlo v. Robinson) 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
Tarlo v. Robinson, 118 A.D.2d 561, 499 N.Y.S.2d 174, 1986 N.Y. App. Div. LEXIS 54423 (N.Y. Ct. App. 1986).

Opinion

In an action, inter alia, for specific performance of a contract to purchase real property, the plaintiff [562]*562appeals from a judgment of the Supreme Court, Suffolk County (Underwood, J.), dated January 4, 1984, which, after a nonjury trial, dismissed his complaint against the defendants and directed the defendants to return to the plaintiff a $3,000 down payment made on the contract.

Judgment reversed, on the law and the facts, with costs, judgment directed in favor of the plaintiff on the complaint, and matter remitted to the Supreme Court, Suffolk County, for further proceedings consistent herewith and the entry of an appropriate judgment, to wit, directing specific performance of the contract, or, if the property has been sold during a period when a notice of pendency of this action was not in effect, an award of damages to the plaintiff.

The subject of this action is a parcel of real property known as District 904, Section 7, Block 5, Lot 17, on the land map of the Incorporated Village of Southampton, Town of Southampton, County of Suffolk. The defendants, the owners of the property, listed it with a broker for sale at an asking price of $33,000. The broker produced one Alexander Mcllvaine as a prospective purchaser. The defendants’ attorney, Donald Ma-honey, prepared a contract of sale with a closing date of August 25, 1980. The contract did not contain a provision stating that time was of the essence. Upon receipt of the contract, Mcllvaine unilaterally changed the closing date from August 25, 1980 to September 25, 1980, signed the contract and returned it with a down payment of $3,000 to the defendants’ attorney. Notwithstanding Mcllvaine’s unilateral change of the closing date to September 25, 1980, the defendants signed the contract on or about August 18, 1980, and a copy was returned to Mcllvaine.

Subsequently, Mcllvaine wrote to the defendants’ attorney asking for a two- or three-month extension of the time to close title. On advice from his clients, attorney Mahoney wrote a letter, dated October 1, 1980, informing Mcllvaine that the closing was scheduled for October 14, 1980 and no further adjournments would be granted by the defendants. On October 8, 1980, the defendants’ attorney sent another letter to Mcllvaine, enclosing a proposed closing statement and reiterating that the closing was scheduled for October 14.

On October 9, the defendants’ attorney received a mailgram from Mcllvaine stating that he would be out of the country on October 14, but that he had been told by the broker that the defendants and their attorney (Mahoney) agreed to an additional adjournment to October 24. The defendants’ attorney [563]*563testified that he had not agreed to an adjournment past the scheduled closing date of October 14. Mahoney further testified that on October 14 he was present at his office with a deed previously executed by the defendants and ready to be tendered. However, neither the purchaser, Mcllvaine, nor his representative appeared. At this point in time, Mahoney had not received a title insurance report and the deed he prepared was based on the deed by which his clients had originally obtained title.

Within a week prior to October 20, Mcllvaine asked Frederick McLoughlin, one of the broker’s real estate salesman, if he knew of anyone who would accept an assignment of the contract of sale and purchase the subject parcel. The salesman showed the property to the plaintiff, who agreed to purchase it. According to this salesman, when he told the defendants that the contract would be assigned to the plaintiff, the defendant Arthur Robinson’s response was, "I don’t care who buys it, I just want it sold”.

On October 20, pursuant to an appointment, the plaintiff and the real estate salesman appeared at the office of Mahoney, the defendant’s attorney. The salesman delivered to the plaintiff the contract of sale containing a provision assigning all the right, title and interest of Mcllvaine to the plaintiff. The assignment provision had already been executed by the original contract vendee, Mcllvaine. In the presence of the defendants’ attorney, the plaintiff accepted the assignment and signed the document. As consideration for the assignment, the plaintiff paid Mcllvaine $3,000, representing reimbursement of the down payment Mcllvaine gave to the defendants. Above the assignment provision of the contract are the following words: "Closing of title under the within contract is hereby adjourned to October 24, Friday, 1980, at 11 A.M. o’clock at Mr. Mahoney’s office” (emphasis added). The emphasized words are handwritten.

It is noteworthy that as of October 20, a title insurance report had not yet been received by either party, although it had previously been ordered by the broker at the request of Mcllvaine.

The particulars of the conversation which occurred at the October 20 meeting are in dispute. The defendants’ attorney, Mr. Mahoney, testified that he advised the plaintiff and the real estate salesman that the contract did not prohibit an assignment and, therefore, he had no control over the assignment. Mahoney further testified that he told the plaintiff that the defendants were holding Mcllvaine in default as of the [564]*564scheduled October 14 closing date and that Mcllvaine’s request for an adjournment of the closing until October 24 had not been agreed to by defendants. Mahoney denied ever having agreed to an adjournment beyond October 24. The plaintiff, a British solicitor, testified that Mahoney never mentioned that the defendants were holding Mcllvaine in default. He also testified that he discussed the "question of arranging a closing date” with the defendants’ attorney since he and his wife were to leave that day for a three-week visit to England. Mr. Mahoney informed the plaintiff that there had been considerable delay in the closing of title, that his clients would be very unhappy at a further delay, that he was also leaving for a holiday that week and would advise the plaintiff of a future closing date after obtaining his client’s instructions. Thereafter, the plaintiff was never notified of a specific closing date by either the defendants or their attorney. The real estate salesman corroborated the plaintiff’s testimony that no closing date had been fixed at the October 20 meeting and that it was his understanding that the closing would take place when everyone returned from vacation.

On October 29, Mahoney, the defendants’ attorney, wrote a letter to assignor Mcllvaine and the broker, stating as follows: "Since only Mr. Robinson [the defendant] appeared for the closing on October 24, 1980 at 11:00 A.M., please be advised that Mr. Robinson hereby declares you in default under the contract of sale dated August 18, 1980”. The plaintiff was out of the country on October 29, 1980 and never received a copy of this letter. Thus, he was not informed of the alleged default.

Upon returning from England during the week of November 22, 1980, the plaintiff telephoned the defendants’ attorney to ascertain whether he had resolved certain questions raised in the title report. Mahoney informed the plaintiff that the defendants had treated the contract as terminated by reason of Mcllvaine’s default. According to the plaintiff, he had sufficient funds in his bank account to pay the total purchase price. By letter dated November 22, 1980, the plaintiff notified the defendants that unless they fulfilled the contract, he would take legal action to enforce it. According to the real estate salesman, after October 24, 1980, he asked the defendant Arthur Robinson why he refused to close.

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Bluebook (online)
118 A.D.2d 561, 499 N.Y.S.2d 174, 1986 N.Y. App. Div. LEXIS 54423, Counsel Stack Legal Research, https://law.counselstack.com/opinion/tarlo-v-robinson-nyappdiv-1986.