The Lawsuit Against Gordy’s County Market For wrongful Purchase
A historic Gordy’s County market lawsuit has been turned into a class-action lawsuit by a former resident of the area. The dispute revolves around the zoning of the county, and whether or not it’s possible to seek compensation from a local government entity over its failure to enforce certain regulations related to the market. In addition to being the subject of a court case, the lawsuit itself may also be of interest to you, as it pertains to the issues of the real estate market downturn.
First, in regard to this lawsuit itself, it was the defendants in this lawsuit who were ordered to reimburse the plaintiff for losses he or she allegedly sustained as a result of the defendants’ failure to abide by the terms of a previously signed agreement.
The original agreement called for a minimum percentage of foreclosed properties (the “foreclosing costs”) to be sold to a qualified buyer within a stipulated time-frame. It also required that the properties be sold at the same time to the highest bidder, in an effort to hasten the process of selling the property. Although the original agreement did not explicitly define what constitutes “qualified buyers,” it is reasonably apparent that the plaintiffs intended for that criteria to include any buyer that satisfies the “buying” criterion set forth in the original agreement.
The problem with the original agreement was that the plaintiffs were required to submit their bid against the closing costs in order to qualify for the buying process.
It was this requirement that drew the attention of the attorney who handled the original lawsuit. According to this attorney, the plaintiffs’ argument was that they had a contractual right to the property, and thus, should be allowed to seek a reduction of the debt through the courts. They also maintained that once they qualified as buyers under the contract, they were entitled to the full market value of the property immediately. Although other attorneys had raised this argument in prior cases, it seems that this was the first time that an attorney had attempted to use this argument in a real estate market case.
Following the argument, the judge instructed the parties to set forth a schedule for discovery.
At this point, both parties were required to submit discovery evidence. During discovery, it became apparent that the purchase price was actually much lower than the balance of the debt owed. Apparently, the sellers had been aware of this fact throughout the construction of the house. They attempted to use this fact in an attempt to induce the buyer to settle for a purchase price lower than the balance of the debt owed. But once the discovery was completed, it became obvious that this was not the case.
Once the discovery was complete, the parties discussed the remaining remedies open to them.
According to this court transcript, the trial court “made clear” that the trial court could not require the seller to pay anything to the buyer, unless it was one of the deficiencies.” This statement was quite obviously interpreted to mean that if the buyer could not purchase the property because of a deficiency, the seller would not be required to pay anything. This new ruling caused a panic for both parties and led to a rush of offers in the market.
According to the buyer’s side of the case, they were happy with this outcome. They felt that their rights had been protected and were very pleased with the outcome of the settlement offer. The defendants were equally happy. They were able to negotiate a purchase price that was much less than the balance of the debt owed, but still far below their real market value. Essentially, they were able to walk away from the process with at least some money.
The sale of the house occurred after the completion of all paperwork.
It was then put on the market. The buyer made the purchase at the pre-determined market value and immediately started making repairs. Unfortunately, this was not enough to attract any buyers, resulting in the forced sale of the home to the first bidder on the contract.
There was one problem with the Gordy’s County market lawsuit. The contract was defective, and the sale of the property was allowed to go forward despite the fact that it was not profitable for either party involved. This meant that the contract lawsuit was not certified by the county, and this meant that it was essentially worthless to anyone involved in the case.