Chicago Title Co. v. Alpine-Riviera, LLC
Defendants Alpine-Riviera, L.L.C., Alpine-McIntyre, L.L.C., Destiny-Phoenix West, L.L.C., and Destiny-Dallas, L.L.C. (collectively seller) agreed to sell defendant H. Wayne Klekamp, Inc. (buyer) four recreational vehicle (RV) parks. The parties opened an escrow with plaintiff Chicago Title Company and buyer deposited $100,000. When the parties failed to complete the transaction, both seller and buyer asserted a right to the deposit. Plaintiff filed this interpleader action and deposited the $100,000 with the superior court. After trial, the court awarded the deposit to buyer. Applying New York law, as required by the contracts choice-of-law clause, the court found seller committed a material breach of the agreement by failing to inform buyer of pending governmental enforcement action against one RV park concerning its noncompliance with water quality standards, which seller failed to cure before the closing date. In addition, the court ruled buyer was not required to provide seller either with proof it had obtained adequate funding for the purchase or that it was otherwise ready, willing, and able to complete the contract to recover its deposit. Seller appeals. Court affirm the judgment.
Comments on Chicago Title Co. v. Alpine-Riviera, LLC