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Bay Meadow Corp. v. Hart

The plaintiff could not seek to amend its complaint seeking specific performance on a contract provision regarding a right of first refusal to purchase land one year after the trial court entered final judgment on the matter.

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Bay Meadow Corporation sued Orean Hart for specific performance of a contract provision regarding a right of first refusal to purchase land.1 By order dated November 8, 2001, the trial court found that the contract provision was unenforceable. Over a year later, Bay Meadow purported to amend its complaint. Following a hearing, the trial court clarified that its November 2001 order “was intended to be, and was, a final judgment on the merits of the case.” Accordingly, the trial court entered judgment in favor of Ms. Hart, and this appeal ensued. For reasons that follow, we affirm. The relevant facts show that Hart owned Pigeon Oaks Subdivision, and in October 1999 she sold 16 lots to Bay Meadow. The contract between the parties contained a clause, which provided that Bay Meadow “is also granted the right of first refusal on all future lots created by any other phases of Pigeon Oaks Subdivision at such purchase price as is mutually agreed upon by both Sellers and Purchaser.”

In July 2001, Hart considered selling a portion of the property to Jimmy Carroll, a neighboring landowner. Prior to selling the property to Carroll, Hart had her attorney contact Bay Meadow to ascertain whether it was interested in purchasing the property. Thus, on July 10, 2001, the attorney sent a letter to Harold Hagan, Bay Meadow’s sole stockholder, asking if he wanted to purchase the property for $2,750 per acre. The letter informed Hagan that, if he did not respond within ten days, the Harts would proceed with the sale to Carroll.

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