JONES V. LEE 971 P.2d 858 (1998) CASE BRIEF

JONES V. LEE

971 P.2d 858 (1998)

NATURE OF THE CASE: Lee (D), buyers, appeal from judgments determining that they breached a contract to purchase a residence and awarding compensatory and punitive damages to Jones (P), sellers, and compensatory damages to Sonja Waldin and The Vaughn Company, Inc. (Broker-Agents).

FACTS: D entered into a written real estate contract wherein they agreed to purchase Ps' residence for $610,000. Several weeks after signing the purchase agreement and tendering $6,000 in earnest money, D informed P they were unable to consummate the agreement because of financial reasons. D submitted a proposed termination agreement, dated August 23, 1994, to P, whereby D offered to void the contract in return for forfeiting their $6,000 earnest money deposit. P rejected the proposed termination agreement and relisted the property for sale. P sold to another purchaser for $540,000. P filed suit against D, seeking damages for breach of the real estate purchase agreement. D filed several counterclaims against P and a third-party claim against Broker-Agents. The counterclaims alleged that P and their Broker-Agents misrepresented the fact that Waldin and The Vaughn Company were acting as agents for P; that P and their Broker-Agents were guilty of fraud; that P and their Broker-Agents were negligent; that the contract should be declared void; and that Broker-Agents were guilty of unfair trade practices. Broker-Agents also filed a counterclaim against D asserting that, as third-party beneficiaries, they were entitled to recover their real estate commission on the sale. The trial court dismissed D's counterclaims against P and the third-party claims against Broker-Agents. It awarded P $70,000 in damages for the loss resulting from the resale of the realty at a lower price; $300 for a heating warranty required to be furnished the new buyers; $1433 for a solar inspection required by the new buyers; $126 for a consultation on the solar system required by the new buyers; $2250 for interest payments on the first and second mortgages until resale; $17,156, plus gross receipts tax, for a broker's commission; $11,000 for architect and contractor fees incurred on a home P's had planned to build following the sale of their home; and $10,172 for interest claimed to have been lost by Ps on the net proceeds of the contract sale price. The compensatory and special damages awarded by the trial court totaled $112,748.94. In addition to the compensatory and special damages listed above, the trial court also awarded $33,000 in punitive damages, together with costs and prejudgment interest. The total damages awarded to Sellers amounted to $157,118.94, plus court costs. The trial court also awarded Broker-Agents the sums of $18,300, plus $1,017.94 gross receipts tax, for their loss of the commission and $16,448 in attorney fees, together with gross receipts tax thereon. Ds appealed.

ISSUE:

RULE OF LAW:

HOLDING AND DECISION:

LEGAL ANALYSIS:

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