11/17/2008 - Neal Moore Obtains Summary Judgment in Arbitration Procceding
This case involved the purchase of undeveloped real property in Jefferson County, Alabama. The property was sub-divided and sold at auction. Eleven of the purchasers subsequently filed suit for fraud, suppression, and breach of contract after learning the Jefferson County Commission would not issue building permits for the lots based on inadequate road access. Representing the real estate broker in the transaction, Neal Moore initially moved to stay the judicial proceeding and compel arbitration consistent with the language in the sales contract. After selecting an arbitrator, Mr. Moore then obtained permission to conduct pre-hearing discovery. Following the depositions of the plaintiffs, Mr. Moore filed for summary judgment in the arbitration proceeding. Alabama recognizes the law of caveat emptor in the sale of undeveloped real property. Furthermore, any claim for fraud must be based on reasonable reliance, an objective standard based on all the facts and circumstances of the transaction. The relative education of the parties, and the disclosures and disclaimers in the sales contract proved the plaintiffs could not, as a matter of law, have relied upon the allegedly false information provided during the auction. The arbitrator granted summary judgment on all counts.
For more information about this case, or if you have questions regarding arbitration proceedings in Alabama, please contact Neal directly at 205-380-6985 or by email at ndm@ffdlaw.com
