Sue For Specific Performance

[Matthew Olszak]

So I've been reading a lot of "Call a lawyer!" responses lately as a solution to any dispute. Just want to throw this out there to maybe put things into perspective for folks:

http://www.illinoiscourts.gov/Opinions/AppellateCourt/2019/1stDistrict/1170955.pdf

Here is a case of 13 years of litigation on a specific performance case (among other issues), appealed, and remanded. So its still not over. This is a multi-million dollar deal, so paying 13 years (easy 6 figures) of litigation costs is likely worth it to the litigants, especially considering the appreciation of the property value over that time. But I present this as more of a get-real talk to those who think its even worth picking up the phone over a $500 dispute.

On the topic, does anyone have any good stories of spending more on your attorney than you (or someone you know) won via a judgement? 

[Jay Hinrichs]

I do I do 

In 46 years of being a licensed Agent/Broker I have been threatened once and litigated once. and this over at least a few thousand transactions.. ( granted a bunch of my transactions were HML so I guess that don't count)

But anyway.

I find a deal Extreme hoarder house I mean the blackberries have grown over the roof you cant even see the house and this is in urban Portland.  Tax's owed 47k going to lose it in a matter of days..  So we contract to buy it and we put up 47k to pay the back tax's and give the seller an additional non refundable and released 20k.. so 67k at risk.. Now keep in mind in my market I can get a title report in a matter of hours so I know she owns it free and clear and just a few city code liens for the over growth .. 

closing date is coming up.. we put up our cash to close another 100k plus into escrow.. and she just went dark .

try to reason with her.. then I thought maybe she was dead in the house and being eaten by her 50 cats.. Cops go for wellness check and nope still alive. 

we are forced to sue.. long and the short of it it was a specific performance action. took 2 years another 20k. judge rules she must sell to us.. she still wont sign the deed.. have to go back and have the judge change the order so the title company will insure us.. we close about 2.5 years later and send the proceeds to her.. even though she never sign anything but the original contract.

Now keep in mind she did not defend herself.. so not sure where this would have gone with a vigorous defense.  Also we could never serve her and we went for a stipulated order which the judge denied and he made us post in the newspaper that cost another 5 or 6k. 

So when we see all these basic rookies on BP saying sue for performance I suspect none of them have actually been through litigation and while the concepts they understand the reality is far from what they can comprehend when they say sue the bastards .  most folks simply can put that much cash into an escrow and let it sit with no assurance they will win.... so they give up.. and certainly with limited equity deals..