Sun-Pacific Enters. Inc. v. Girardot

Defendants' promise not to develop an adjoining subdivision lot survived the closing of plaintiffs' lots despite a merger clause in their sales contract because plaintiffs detrimentally relied on defendants' continued representations after closing.

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Based on written and oral representations made by defendant Sun-Pacific Enterprises, Inc., through its agent Joseph Sunn, that lot 1 in the Costa Lanier subdivision bordering Lake Lanier would be conveyed to the homeowners’ association for community use, plaintiffs Steven and Mary Christine Girardot purchased lots 2 and 3 and built their dream home. Sun-Pacific then razed a portion of lot 1 and listed it for sale. The Girardots filed suit for injunctive relief, actual damages, and attorney fees. Sun-Pacific demanded a jury trial but failed to produce any witnesses.1 The jury awarded the Girardots $16,000 in damages. The trial court granted a permanent injunction prohibiting Sun-Pacific from conveying the lot to any entity other than the homeowners’ association. Sun-Pacific’s motions for new trial and j.n.o.v. were denied, and the trial court awarded the Girardots $19,711.13 in attorney fees. Sun-Pacific appeals, and we affirm.

As Sun-Pacific failed to present any evidence, the salient facts are uncontroverted. Mr. Girardot and two additional homeowners testified at trial that during their first meeting with Sunn, he provided them with a price list and a plat for the subdivision. “TENNIS COURT” and “LOT FOR SWIMMING POOL” were written within the boundary lines of lot 1 on the plat. Although the price list stated a price of $35,000 for lot 1, it also indicated that “lot 1 . . . will not be built.” Girardot testified that when he asked Sunn why a price was listed for lot 1, Sunn stated that the price reflected the value of the lot and was intended to be used as a marketing tool. Sunn told Girardot that lot 1 would be transferred to the homeowners’ association, which would be responsible for constructing the amenities.

Sun-Pacific Enters. Inc. v. Girardot

Defendants' promise not to develop an adjoining subdivision lot survived the closing of plaintiffs' lots despite a merger clause in their sales contract because plaintiffs detrimentally relied on defendants' continued representations after closing.

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