Procedural Posture: civil defense lawyers

Appellant sellers sought review of the judgment of the Superior Court of Los Angeles County (California), which found in favor of respondent buyers in an action against the buyers for breach of contract to purchase realty after the buyers withdrew from the contract of sale because of an existing easement.

Overview

The sellers contended that an easement was not an encumbrance on their property and that, therefore, the buyers lacked a valid excuse for their failure to perform the contract. The agreement between the parties provided for the sale of the property without any easements. The buyers put money into an escrow. Under the terms of the escrow, the parties agreed that the transaction would be completed within 30 days, or as early as possible thereafter, unless one of the parties provided a written demand for the release of the escrow money. When after 30 days the sellers had not been able to get the easement removed from the land, the buyers demanded that the money be released from the escrow. The sellers received notice of the demand. The trial court found for the buyers. The court affirmed and held that the easement was an encumbrance on the property that allowed the buyers to withdraw from the agreement without liability. The court held that although normally time was not of the essence unless specifically stated, the agreement that either party could withdraw the money after 30 days was a specific contractual agreement as to time that the court could not alter.

Outcome

The court affirmed the judgment for the buyers in the sellers' action for breach of contract.