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Keywords

contractlawsuittortdamagesstatuteprecedentspecific performance

contracttortdamagesprecedentappealtrialwillspecific performance

Related Cases

Greensleeves, Inc. v. Smiley, 942 A.2d 284

Facts

Philip B. Smiley, Sr. owned six condominium dock slips and, after unsuccessful attempts to sell them, negotiated a sale with Greensleeves, Inc. for $165,000. Before the scheduled closing, Smiley accepted a higher offer from Mr. Friedrich and sold the slips to him instead. Greensleeves filed a lawsuit seeking specific performance and a notice of lis pendens. The Superior Court initially ruled against Greensleeves, but the Supreme Court later found that the May 24 letter constituted a valid contract and ordered specific performance.

Since 1988, Philip B. Smiley, Sr., had owned six condominium dock slips at Lee's Wharf Marina in Newport, Rhode Island. In 1993, after two unsuccessful attempts to sell his dock slips, Mr. Smiley contacted his real estate broker, Joseph W. Accetta, and asked him to undertake further efforts to obtain a buyer for the dock slips.

Issue

Whether the May 24 letter constituted an enforceable contract for the sale of the dock slips and whether Greensleeves could recover lost rental profits from Friedrich for tortious interference.

The Supreme Court, Robinson, J., held that: 1 notice of appeal from final judgment preserved buyer's right to review of trial court's earlier ruling; 2 third party was a bona fide purchaser and thus was entitled to have rental income offset by interest on unpaid purchase price in connection with claim for specific performance; but 3 buyer could seek lost rental profits from third party as damages for third party's alleged tortious interference with contract.

Rule

The court applied the principles of specific performance and the statute of frauds, determining that a written agreement must contain all essential terms to be enforceable. Additionally, the court referenced the precedent set in Bissonnette v. Hanton City Realty Corp. regarding the rights of parties in specific performance cases.

The remedy of specific performance is available when a purchaser of real estate under a written contract demonstrates that he or she was at all times ready and willing to perform the contract.

Analysis

The court determined that the May 24 letter contained all necessary elements to constitute a contract, thus reversing the lower court's ruling. It also held that Greensleeves was entitled to specific performance as it had demonstrated readiness to perform the contract. Furthermore, the court clarified that while the Bissonnette rule applied to the specific performance aspect, it did not preclude Greensleeves from seeking damages for tortious interference against Friedrich.

The underlying justification for the Bissonnette rule is that it puts the original seller and the original buyer in the same position that they would have been in had the sale taken place on the original closing date.

Conclusion

The Supreme Court affirmed the specific performance ruling in favor of Greensleeves and allowed it to pursue lost rental profits from Friedrich for tortious interference, while also vacating the lower court's ruling that barred such claims.

For the reasons set forth herein, we affirm the ruling of the Superior Court that our opinion in Bissonnette constituted the controlling precedent with respect to the contractual (accounting) aspects of this case.

Who won?

Greensleeves, Inc. prevailed in the case as the court affirmed its right to specific performance and allowed it to seek damages for tortious interference.

The Supreme Court, Robinson, J., held that: 1 notice of appeal from final judgment preserved buyer's right to review of trial court's earlier ruling.

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