Terry Lee Ing v. Song Adams

CourtCourt of Appeals of Mississippi
DecidedAugust 25, 2020
DocketNO. 2019-CA-00936-COA CONSOLIDATED WITH NO. 2017-CA-00084-COA
StatusPublished

This text of Terry Lee Ing v. Song Adams (Terry Lee Ing v. Song Adams) 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
Terry Lee Ing v. Song Adams, (Mich. Ct. App. 2020).

Opinion

IN THE COURT OF APPEALS OF THE STATE OF MISSISSIPPI

NO. 2019-CA-00936-COA

CONSOLIDATED WITH

NO. 2017-CA-00084-COA

TERRY LEE ING APPELLANT

v.

SONG ADAMS APPELLEE

DATE OF JUDGMENT: 05/24/2019 TRIAL JUDGE: HON. JOHN ANDREW GREGORY COURT FROM WHICH APPEALED: MARSHALL COUNTY CIRCUIT COURT ATTORNEY FOR APPELLANT: JOSEPH WHITTEN COOPER ATTORNEY FOR APPELLEE: KENT E. SMITH NATURE OF THE CASE: CIVIL - CONTRACT DISPOSITION: AFFIRMED IN PART; REVERSED AND RENDERED IN PART - 08/25/2020 MOTION FOR REHEARING FILED: MANDATE ISSUED:

BEFORE BARNES, C.J., McDONALD AND McCARTY, JJ.

McDONALD, J., FOR THE COURT:

¶1. This is the second appeal of a Marshall County Circuit Court lease-purchase case. In

the first appeal, decided on May 15, 2018, we held that Terry Ing had exercised his option

to purchase a building he had rented from Song Adams. We remanded the case to enable Ing

to complete the purchase at a sales price of $350,000. Ing was unable to do this, and Adams

filed an eviction action. On May 16, 2019, the circuit court not only evicted Ing but also

granted a judgment for Adams in the amount of $130,000 for back rent Ing owed. From that

judgment, Ing appeals, arguing that the circuit court erroneously set the purchase price at $350,000 and erroneously granted Adams a judgment for back rent. Because we find that

the circuit court did not err in enforcing our previously mandated $350,000 purchase price,

but that it did err in calculating the amount of back rent Ing owed, we affirm in part and

reverse and render in part.

Facts

¶2. Our prior opinion in this case, Ing v. Adams, 248 So. 3d 881 (Miss. Ct. App. 2018),

contains the facts of the first phase of this case. Adams, the owner of a three-story building

in Holly Springs, Mississippi, leased the basement to Ing for a five-year period beginning

January 27, 2010, paying $2,500 per month. Ing had purchased the pizza business that was

already in operation. He would occupy the basement while Adams ran a liquor store on the

first floor and rented out an apartment on the third floor.

¶3. The Adams-Ing lease agreement included a purchase option that gave Ing the right to

purchase the entire building at the end of the lease:

At the end of this current five year lease provided that Lessee is current upon all conditions of this lease, he has the option to extend the lease for an additional five years or to purchase the building at [its] then appraised value.

If Ing did not exercise that option, the lease would become a month-to-month lease.

¶4. Four days prior to the expiration of the lease, in January 2015, Ing notified Adams of

his desire to purchase the building, but Adams refused to sell it. Ing stopped paying rent, and

Adams filed a complaint in the circuit court for eviction, damages, and other relief. Ing

counterclaimed for damages and other relief, including specific performance.

¶5. At the circuit court’s bench trial of the matter on May 26, 2016, Adams presented, for

2 the first time, a $350,000 appraisal of the building she had obtained on February 13, 2015,

from Michael Shaw, a licensed certified residential real estate appraiser.1 On December 23,

2016, the circuit court issued its final judgment with findings of fact. The court ruled that

although Ing was not in material breach of the contract as Adams had alleged, Ing had failed

to exercise his option to purchase. The court granted Adams’s motion to evict and found Ing

liable for back rent. Ing appealed on January 23, 2017, and posted a bond to stay the

execution of the circuit court’s order.

¶6. After the bench trial in May 2016, but before the December 2016 written judgment,

Ing obtained his own appraisal of the property, which prepared by Jeff Norwood of Rip

Walker and Associates, licensed certified general real estate appraisers. In the July 7, 2016

report of the appraisal performed on June 21, 2016, Norwood assessed the property to be

valued at $255,000. The parties apparently used Adams’s and Ing’s appraisals to try to

1 Mississippi licenses two types of appraisers:

The following shall be the two (2) classes for licensed certified real estate appraisers:

(a) Licensed certified residential real estate appraiser. The licensed certified residential real estate appraiser classification shall consist of those persons who meet the requirements that relate to the appraisal of residential real property of one (1) to four (4) units without regard to transaction value or complexity. In addition, when nonfederally related transactions are involved, the licensed certified residential real estate appraiser shall enjoy the same privileges as set forth for the licensed real estate appraiser.

(b) Licensed certified general real estate appraiser. The licensed certified general real estate appraiser classification shall consist of those persons who meet the requirements relating to the appraisal of all types of real estate.

Miss. Code Ann. § 73-34-19 (Rev. 2014).

3 negotiate a settlement, but they were unable to agree on a purchase price. But when

negotiations broke down, Ing did not bring this second appraisal to the circuit court’s

attention before the court ruled in December 2016. Thus, the record on the first appeal

contained only the $350,000 appraisal from Adams.

¶7. In January 25, 2018, we heard oral argument on the matter. Ing’s counsel told us that

he obtained a second appraisal but did not tell us the amount because it was not in the record.

Adams took the position that she had put a $350,000 appraisal into the record and that Ing

had not countered it. Ing’s attorney was further questioned about the matter of having only

the single appraisal in the record:

Wilson, J.: So what happens if you find an appraiser that says $250,000 and hers says $350,000, and they don’t agree, what is the appraised value?

Counsel: I think the appraised value would be whatever a judge states that the appraised value should be, given both . . .

....

Carlton, J.: Why isn’t Mr. Ing stuck with the appraisal that is in the record since he did not present his own opposing appraisal at the trial court below?

Counsel: Mr. Ing went to trial with the understanding that he was going to have to prove that he did not breach the contract. That is what is in the lawsuit. He is going to have to prove that he did (inaudible) his option to purchase. It was Mr. Ing’s assertion that he went to trial to show that he should be given an opportunity to go forward with buying the property.

Carlton, J.: But Mr. Ing filed a counterclaim asking for general and specific relief and . . . before the trial judge, asked for specific performance.

4 Counsel: Yes, your honor, he did and at that point we did not have an appraisal done. I agree with that, your honor. So if it is the Court’s determination that he is, for lack of a better term, “stuck” with the $350,000, then Mr. Ing will accept that. And if that would be the ruling, and if that is the ruling, I think there is a proper foundation laid for that to be the ruling, if this court decides that.

¶8. After oral argument, we reversed the circuit court’s decision in our opinion issued on

May 15, 2018. We found that Ing had properly exercised his option to purchase Adams’s

building. Id. at 886 (¶22). Because he did so, Ing became an equitable owner of the property

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Terry Lee Ing v. Song Adams, Counsel Stack Legal Research, https://law.counselstack.com/opinion/terry-lee-ing-v-song-adams-missctapp-2020.