Torres v. D'Alesso

80 A.D.3d 46, 910 N.Y.S.2d 1
CourtAppellate Division of the Supreme Court of the State of New York
DecidedOctober 7, 2010
StatusPublished
Cited by22 cases

This text of 80 A.D.3d 46 (Torres v. D'Alesso) 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
Torres v. D'Alesso, 80 A.D.3d 46, 910 N.Y.S.2d 1 (N.Y. Ct. App. 2010).

Opinions

OPINION OF THE COURT

Saxe, J.P.

When both parties to a real estate sales contract have executed and delivered to the other party a completely integrated written contract containing the specific language that any prior oral agreements or representations are merged into the writing, and that “neither party reifies] upon any statement made by anyone else that is not set forth in this contract,” such a contract may not be avoided by a claim of a prior orally-agreed-upon condition precedent to the effectiveness of the contract. The rule that the parties to a written contract may orally agree to a condition precedent to the effectiveness of the contract, so that a party must be permitted to prove by parol evidence a claim that the contract never became effective because the condition precedent never occurred (see Hicks v Bush, 10 NY2d 488, 491 [1962]), is not applicable under circumstances such as [48]*48those presented here. Even if the rule were applicable here, the purported condition would be unenforceable because it contradicts terms of the writing. And, the words used to create the condition lack the “clear language showing that the parties intended to make it a condition” (Unigard Sec. Ins. Co. v North Riv. Ins. Co., 79 NY2d 576, 581 [1992]) that is necessary to validly create a condition precedent to the effectiveness of the contract.

Defendant buyer executed a written contract to purchase real property on Fire Island from plaintiff seller. With the signed contract, the buyer turned over to the individual third-party defendant, the seller’s attorney, a contract down payment check for $120,000. However, the buyer alleges that the terms of the parties’ contract were modified by an oral agreement he made with the seller’s attorney at the time he turned over the signed contract and down payment check, under which the attorney allegedly agreed not to deposit the buyer’s down payment check “until further notice” while the buyer awaited word on whether his application for a home equity line of credit was granted.

The written contract as negotiated by the parties consisted of a modified standard form contract for the sale of residential real estate, with a rider. In the contract’s final form, the parties deleted from the standard form its entire mortgage financing contingency provision, so that the final agreement contained nothing that conditioned the buyer’s obligations on his ability to obtain financing. Indeed, rider paragraph 45 contained a specific representation that the buyer had sufficient assets to complete the purchase. Additionally, rider paragraph 39 dealt with the possibility of a check being returned, giving the seller the option of deeming the contract void ab initio “in the event any check being delivered herewith fails of collection,” and if the seller so notified the buyer, giving the buyer 48 hours to replace the bounced check with certified funds.

Also important here is the language of the written contract’s merger clause, in paragraph 28. It provides that

“[a] 11 prior understandings, agreements, representations and warranties, oral or written, between Seller and Purchaser are merged in this contract; it completely expresses their full agreement and has been entered into after full investigation, neither party relying upon any statement made by anyone else that is not set forth in this contract.”

It goes on to provide that “[n] either this contract nor any provi[49]*49sion thereof may be waived, changed or cancelled except in writing.”

On October 31, 2007, with the consent of the buyer’s attorney, who declined to be present, the seller’s attorney met with the buyer to receive the contract executed by the buyer and his down payment check. The seller’s attorney disputes the buyer’s claim as to exactly what was said at that meeting. According to the attorney, when the buyer gave him the executed contract and check, the buyer asked him not to deposit the check until Monday November 5, 2007, on which date he could deposit it unless he heard otherwise. In response, the attorney says, he told the buyer that it was his practice not to deposit a down payment check until he received the fully countersigned contract from the seller, and that he would not be receiving the fully executed contract before November 5th, so the down payment would not be deposited before then; as to any other problems or questions, he advised the buyer to speak to his own attorney.

According to the buyer, he informed the seller’s attorney that he was waiting to hear within the next week on his application for a home equity line of credit, and that he “ ‘did not have money in [his] account’ to make good the deposit check, and asked if he [the seller’s attorney] could hold the check without depositing same until he heard further from me,” and “[the seller’s attorney] responded that he ‘will not submit the check until I hear from you.’ ” The buyer then signed the contract and gave the seller’s attorney the check based on this assurance. A friend of the buyer’s who accompanied him to the attorney’s office concurs with the buyer’s version of the events.

The seller’s attorney sent the contract to his client for signature. While awaiting the return of the contract from his client, the seller’s attorney received three calls from the buyer’s attorney, who inquired about when the fully executed contract would be received and requested immediate delivery of it upon receipt. He also ordered a title report. On November 12, 2007, the seller’s attorney received the executed contract from the seller, deposited the down payment check in the escrow account, and delivered a copy of the fully executed contract to the buyer by fax and by mail, with a letter indicating that the check had been deposited in the escrow account.

On November 19, 2007, the buyer’s attorney faxed a letter to the seller’s attorney stating, “Our client has advised us that he will not be proceeding with the above transaction.” On the same day, the seller’s attorney was also informed by the bank [50]*50that the down payment check had been returned for insufficient funds. The seller’s attorney sent a letter to the buyer’s attorney requesting a certified replacement check for $120,000 plus a certified check for $15 to cover the bounced check fee charged by the bank. The buyer sent the seller a check for $15, but never sent a replacement check for the down payment. This action followed, in which the seller, as plaintiff, sought a money judgment in the amount of $120,000 representing liquidated damages for the buyer’s breach of contract. The court granted the seller’s motion for summary judgment.

The buyer contends that the court should have denied the seller’s motion for summary judgment because a dispute exists as to whether the allegedly agreed-upon oral condition was part of the contract, which, if resolved in the buyer’s favor, would render the parties’ written agreement unenforceable because the condition never occurred. We reject this contention and affirm the grant of summary judgment in the seller’s favor.

In taking the position that the signed written contract was not enforceable in view of the new condition that the seller’s attorney allegedly agreed to upon accepting the contract executed by the buyer and the down payment check, the buyer relies on Gutowski v Louie (193 Misc 2d 465 [2002]). Gutowski

Free access — add to your briefcase to read the full text and ask questions with AI

Related

IPA Asset Mgt., LLC v. Schuman
2025 NY Slip Op 03314 (Appellate Division of the Supreme Court of New York, 2025)
Downstate at Lich Holding Co., Inc. v. Fortis Prop. Group, LLC
2024 NY Slip Op 50376(U) (New York Supreme Court, Albany County, 2024)
Stagen v. Neu
221 A.D.3d 554 (Appellate Division of the Supreme Court of New York, 2023)
Lebovits v. Friedman
2018 NY Slip Op 1457 (Appellate Division of the Supreme Court of New York, 2018)
Galil Kineret LLC v. Jung Wor Chin
49 Misc. 3d 367 (New York Supreme Court, 2015)
Wells Fargo Bank N.A. v. Sovereign Bank, N.A.
44 F. Supp. 3d 394 (S.D. New York, 2014)
Kim v. Capital Markets Placement, LLC
45 Misc. 3d 271 (Civil Court of the City of New York, 2013)
East 51st Street Crane Collapse Litigation v. East 51st Street Development Co.
100 A.D.3d 503 (Appellate Division of the Supreme Court of New York, 2012)
Ashwood Capital, Inc. v. OTG Management, Inc.
99 A.D.3d 1 (Appellate Division of the Supreme Court of New York, 2012)
Schron v. Troutman Sanders LLP
97 A.D.3d 87 (Appellate Division of the Supreme Court of New York, 2012)
Fundamental Long Term Care Holdings, LLC v. Cammeby's Funding LLC
92 A.D.3d 449 (Appellate Division of the Supreme Court of New York, 2012)
Edelman Arts, Inc. v. Art International (UK) Ltd.
841 F. Supp. 2d 810 (S.D. New York, 2012)
Schron v. Grunstein
32 Misc. 3d 231 (New York Supreme Court, 2011)

Cite This Page — Counsel Stack

Bluebook (online)
80 A.D.3d 46, 910 N.Y.S.2d 1, Counsel Stack Legal Research, https://law.counselstack.com/opinion/torres-v-dalesso-nyappdiv-2010.