Gardella v. Torres
This case arises from a failed commercial real estate transaction between plaintiff Joseph P. Gardella, the buyer, and John Escove, the seller. Plaintiff offered to purchase a commercial office building from Escove for $1,650,000. The offer required Escove to carry back $1,150,000 in seller financing. Escove accepted the offer, subject to his approval of plaintiffs financial condition. After reviewing plaintiffs credit report and other financial documentation provided by plaintiff, Escove rejected plaintiffs application for financing and cancelled the purchase agreement.
Plaintiff sued Escove for breach of contract and breach of the implied covenant of good faith and fair dealing. Among other things, plaintiff claimed Escove, through his real estate agent B. Katherine Torres, breached the implied covenant by failing to provide plaintiff with a loan application form, thereby preventing plaintiff from complying with the terms of the purchase agreement and causing Escove to cancel the purchase agreement. Plaintiff did not, however, name Torres as a defendant. Plaintiff and Escove participated in a binding arbitration, and the arbitrator found Escove properly cancelled the purchase agreement based on the financial information provided by plaintiff. The arbitrator explained that whether [Escove] provided the plaintiff with a loan application form does not negate the fact that the plaintiff did supply [Escove] with financial information which [Escove] had the right to disapprove of and cancel the contract.
Comments on Gardella v. Torres