Woodwork Display Corp. v. Plagakis

137 A.D.2d 809, 525 N.Y.S.2d 273, 1988 N.Y. App. Div. LEXIS 1919
Appellate Division of the Supreme Court of the State of New York·Decided February 29, 1988·Published·Cited by 13 cases

Opinion

In an action for specific performance of a contract for the sale of real property, the defendant appeals from an order of the Supreme Court, Queens County (LeVine, J.), [810] dated January 9, 1987, which denied his motion for summary judgment dismissing the complaint, and for judgment on his counterclaim to cancel the recording of the contract of sale.

Ordered that the order is reversed, on the law, with costs, and the defendant’s motion for summary judgment dismissing the complaint and for judgment on his counterclaim is granted. On August 13, 1984, the parties entered into a written contract wherein the plaintiff agreed to purchase the defendant’s property in Long Island City. The purchase price was $345,000, of which $50,000 was to be paid on the signing of the contract. The balance of $295,000 was to be paid by cash or certified check when title closed. This purchase was an all-cash transaction with no provision for a mortgage to be obtained by the plaintiff purchaser. The contract provided that the closing of title would take place on August 30, 1985, more than one year after the signing of the contract, and time was not made of the essence.

The facts with regard to the three adjournments of the date of title closing are material to this determination. By letter dated May 28, 1985, the plaintiff exercised an option in the contract and requested that the defendant "cause the removal of any tenants or occupants * * * of the Property at or prior to the Closing”. The defendant could not cause the removal of a tenant prior to the scheduled closing date and requested an adjournment from August 30, 1985 to October 1, 1985, which was agreed to by the plaintiff. By reason of an additional delay in obtaining the removal of the tenant, the defendant requested and was granted a second adjournment .to November 4, 1985. In October 1985, the plaintiff’s attorney, without stating a reason, orally requested and obtained from the defendant an adjournment until December 3, 1985.

In a letter dated November 12, 1985, the plaintiff requested another adjournment of the closing to May 15, 1986, a further delay of more than five months. The plaintiff offered no reason for the lengthy adjournment. However, the plaintiff offered to pay the defendant the additional sum of $25,000 on account of the purchase price. In response, by letter dated November 15, 1985, the defendant’s attorney declined to grant any further adjournment, in the following terms:

"We received your letter of November 12th. Our client refuses any adjournments.
"The building on the property is vacant and he expects to close title as previously agreed on December 3, 1985 at 10:00 [811] a.m. at our office. We shall be prepared at that time to tender to you a deed properly executed and acceptable to your title company.
"Absent such title closing as aforementioned our client will take it that you are in default and will act accordingly”.

It is unclear when this letter of November 15, 1985 was received by the plaintiff’s attorney, since counsel for the plaintiff, in an affirmation, states in a vague manner that "a serious question exits [sic] as to when the same was received”. However, counsel for the plaintiff admits that he did receive the letter "at the earliest, several days after November 15 or, at the latest, several days after the purported remailing on November 22”. The "remailing” refers to a notation on the above-stated November 15th letter by the defendant’s counsel that the letter was remailed on November 22, 1985, "CM rrr” (apparently, certified mail return receipt requested). The plaintiff’s counsel further admitted that "the contents of the letter were discussed with Kaufman [the plaintiff’s president] as soon as the same was received, which was sometime in the latter part of November, 1985”. Thereafter, the plaintiff sought to adjourn the closing date for a lesser period of time, to January 31, 1986, but still approximately seven weeks after the closing date, again without giving any reason. The defendant again refused to adjourn the closing date. On December 3, 1985, the defendant appeared at his attorney’s office ready to deliver the deed, but the plaintiff did not appear or telephone and did not tender the purchase price.

On January 19, 1986, the plaintiff commenced this action for either specific performance of the contract to purchase the property or, in the alternative, the return of the down payment and incidental expenses. In his answer, the defendant, inter alia, interposed a counterclaim to cancel the recording of the contract of sale. The defendant then moved for summary judgment dismissing the complaint and for judgment on his counterclaim. The Supreme Court, Queens County, denied the defendant’s motion, stating that while the defendant’s November 15, 1985 letter did attempt to make time of the essence, triable issues of fact existed as to (1) whether the plaintiff received the notice in sufficient time to close, (2) the defendant’s good faith in making time of the essence, and (3) whether the plaintiff used due diligence to secure financing for the purchase of the real property. We find no such triable issues and, therefore, reverse.

Since the contract itself contained no "time of the essence” clause, in order to unilaterally convert a closing date, the [812] defendant was required to give a clear, distinct and unequivocal notification which fixes a reasonable time within which the plaintiff may perform before default results (Bailen v Potter, 251 NY 224, 229; Mazzaferro v Kings Park Butcher Shop, 121 AD2d 434, 435-436; Perillo v De Martini, 54 AD2d 691, lv denied 40 NY2d 808; 62 NY Jur, Vendor & Purchaser, § 39, at 250, 251). We agree with the Supreme Court that the letter of November 15, 1985 was such a clear and unequivocal notification of the defendant’s intent to make time of the essence as to the December 3, 1985 closing date.

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Woodwork Display Corp. v. Plagakis, 137 A.D.2d 809, 525 N.Y.S.2d 273, 1988 N.Y. App. Div. LEXIS 1919 (N.Y. Ct. App. 1988).

137 A.D.2d 809 (Woodwork Display Corp. v. Plagakis) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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