Bowen Builders Group Inc. v. Reed

Conflicting evidence as to whether the defendant signed a contract in his representative capacity supported the trial court's judgment for the defendant in a bench trial.

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Bowen Builders Group, Inc. and Appco Enterprises, Inc. collectively “Bowen”, real estate developers, brought suit against Bobby Reed for breach of a real estate purchase and sale contract. Bowen alleged that Reed had breached provisions of the contract providing that all 43 lots sold by Reed would be “buildable lots” and that he would construct a playground on one lot. Reed raised several defenses and denied the breach, but his primary defense was that he was not the real party in interest, not being a party to the contract. After a bench trial, the trial court entered an order awarding judgment to Reed, and Bowen appeals. We find that Reed was a party to the contract, but that this is not dispositive of the issue of personal liability on the contract. Because the evidence at trial was in conflict regarding whether the parties intended that Reed be liable on the contract personally, and the trial court apparently found Reed’s testimony more credible than that of Bowen, we affirm the judgment below.

The real estate sale contract does not mention the names of the parties in the body of the contract, simply referring to the parties as the “undersigned buyer” and the “undersigned seller.” The signature lines consist of lines for the respective signatures over lines for printing or typing the names of the parties. The signatures of the principals in the two appellant corporations appear over the names of the corporations although, as pointed out by the trial court, the name of Bowen Builders Group, Inc., or BBG, is barely legible. The line under Reed’s signature, however, is blank.

Bowen Builders Group Inc. v. Reed

Conflicting evidence as to whether the defendant signed a contract in his representative capacity supported the trial court's judgment for the defendant in a bench trial.

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