Z & Y Corp. v. Indore C. Stores, Inc.

638 S.E.2d 760, 282 Ga. App. 163, 2006 Fulton County D. Rep. 3244, 2006 Ga. App. LEXIS 1272
CourtCourt of Appeals of Georgia
DecidedOctober 13, 2006
DocketA06A1152
StatusPublished
Cited by4 cases

This text of 638 S.E.2d 760 (Z & Y Corp. v. Indore C. Stores, Inc.) is published on Counsel Stack Legal Research, covering Court of Appeals of Georgia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Z & Y Corp. v. Indore C. Stores, Inc., 638 S.E.2d 760, 282 Ga. App. 163, 2006 Fulton County D. Rep. 3244, 2006 Ga. App. LEXIS 1272 (Ga. Ct. App. 2006).

Opinion

Ellington, Judge.

This appeal arises from a dispute over the sale of a service station, the parcel of land on which it was located, and an adjoining parcel of land. Z & Y Corporation, which purchased the property, sued the seller, Indore C. Stores, Inc., for breach of contract, specific performance, fraud, attorney fees, and punitive damages. Following a bench trial, the trial court entered a judgment in favor of the seller, and Z & Y Corporation appeals, claiming the evidence did not support *164 the judgment. As explained below, we conclude that several of the trial court’s factual findings and legal conclusions were clearly erroneous and do not support the court’s judgment. Further, we find that Z & Y Corporation was entitled to specific performance of the contract as a matter of law. Therefore, we reverse the trial court’s judgment and remand the case with direction for the court to enter judgment in favor of Z & Y Corporation.

Unless otherwise noted, the following facts are undisputed. Zeyde Yimam is the President of Z & Y Corporation, and Emesh Patel is the CEO of Indore C. Stores, Inc. 1 In July 2002, Patel contracted with Speedway SuperAmerica, LLC, to purchase 36 service stations in the Atlanta metropolitan area (hereinafter, the “Patel/Speedway contract”). One of the stations covered by the contract was located at “2651 Powder Springs Road, Marietta, GA,” and the contract included a land description for this address which contained a metes and bounds description showing that the property included two parcels of land totaling approximately 5.66 acres. The service station is on a parcel measuring approximately two acres (“Parcel I”), and the second, larger parcel was undeveloped (“Parcel II”). The Patel/Speedway contract stated that it was to close on or before November 1, 2002. Patel planned to immediately re-sell all of the stations, and Speedway provided flyers describing the different stations to Patel so that he could market the stations to prospective buyers. Each flyer gave the size and location of a station and the surrounding property, and provided the sales price and other essential information. Patel worked with Citizens Trust Bank to arrange financing for prospective buyers. Patel planned to close on his sales to these buyers before he closed on the Patel/Speedway contract, with the effective date of the resale contracts to be delayed until the date of the Patel/Speedway closing and the proceeds from the resales remaining in escrow until that date.

In August 2002, Yimam learned that Patel was selling service stations in Cobb County, and he received a flyer describing the station and surrounding property located at 2651 Powder Springs Road (“the property”). The flyer described the dimensions of the property, stated that the property measured 246,667 square feet, 2 and listed the selling price as $1 million. Yimam and other prospective buyers met with Patel and Patel’s real estate broker to discuss the purchase of the different properties. According to Yimam, one of the prospective *165 buyers asked Patel which properties were available for sale, and Patel said, “Whatever I [get] from Speedway, I will transfer to you and I will sell it to you.” Yimam also testified that, when he asked Patel about purchasing the Powder Springs Road property, Patel said he no longer wanted to sell the property for $1 million because he had received a survey that day which showed the property contained two parcels of land, not one.

After further negotiations over the following two weeks, however, Yimam and Patel reached an agreement and executed a contract for the sale of the property at “2651 Powder Springs Rd., Powder Springs, GA 30127” 3 for $1.4 million. Although the contract referred to an attached land description in “Exhibit A,” the exhibit was not attached to the contract. According to the contract, the sale was contingent upon Patel “consummating the acquisition of the property and facilities from Speedway SuperAmerica, LLC.” The contract provided that the closing had to occur no later than October 22, 2002, but that the effective date would be the date Patel “consummates the purchase and acquires possession of the Property from Speedway.” The contract also required Yimam to apply for and secure financing from Citizens Trust Bank (“the bank”). Patel’s broker submitted Yimam’s personal financial statement and financing application to the bank on Yimam’s behalf, and the flyer describing the property was included with the documents. The collateral to secure the bank loan included the service station and the “246M square foot lot,” in other words, square footage that would equal both parcels of land. 4

The parties scheduled the closing for October 22, 2002, and agreed that Yimam would sign the closing documents in the morning and Patel would sign the documents later the same day. Prior to the closing, Patel’s attorney provided the bank’s attorney, Patrice Perkins-Hooker, with a land description of the property and a title examination for the property, both of which included Parcels I and II. Perkins-Hooker prepared the closing documents based upon those documents and, on October 21, she faxed copies of the documents to Yimam to review. All of the documents, including the loan agreement, deed to secure debt and security agreement, assignment of revenue, rents and leases, owner’s affidavit, and limited warranty deed, referenced an “Exhibit A” as the legal description of the property. Exhibit A was an addendum which included a legal description for “2651 Powder *166 Springs Road” and described the property as including both Parcels I and II, totaling 5.66 acres.

The next morning, Yimam went to the closing by himself and met with Perkins-Hooker and the bank’s loan officer; neither Patel nor Patel’s attorney was present. Yimam signed the closing documents, and Perkins-Hooker notarized his signatures. The documents were consistent with those that had been faxed the day before and referenced the same legal descriptions showing both parcels of land. During the closing, Yimam and Perkins-Hooker looked over the survey of the property, which showed both parcels of land. According to both Yimam and the loan officer, Perkins-Hooker never said anything during the closing about Yimam receiving only Parcel I instead of both parcels, nor were any questions raised about the accuracy of the land descriptions that were attached to the closing documents. 5

Later that same day, after Yimam had left the bank, Patel signed the closing documents, including an owner’s affidavit and a limited warranty deed; all of the closing documents showed that Patel was selling both parcels of land to Yimam. Patel testified that he did not read the closing documents before he signed them. Perkins-Hooker notarized Patel’s signature on the limited warranty deed. After the closing, Perkins-Hooker sent copies of all of the executed closing documents to Yimam, Patel’s attorney, and the bank, and all of the land descriptions attached to the documents included both parcels of land.

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Bluebook (online)
638 S.E.2d 760, 282 Ga. App. 163, 2006 Fulton County D. Rep. 3244, 2006 Ga. App. LEXIS 1272, Counsel Stack Legal Research, https://law.counselstack.com/opinion/z-y-corp-v-indore-c-stores-inc-gactapp-2006.