Munro v. Beazer Home Corporation

2011 WL 2651910 (2011)

Facts

Woodring (D) is a Maryland-based real estate developer who with the help of two third-party investors purchased a parcel of land now known as Ashley Manor for approximately $300,000. The intention was to develop it into a large residential community, complete with a community pool and clubhouse. The parcel needed to be rezoned from an agricultural residential district into a high-density residential district. The County agreed to rezone the property into a high-density residential district on the condition that Woodring (D) connect it and adjacent properties to the Fenwick Island Sanitary Sewer District. The satisfaction of this condition required the approval of adjacent landowners whose properties were served by privately owned septic systems. P, one of the landowners, was not amused. P did not want to pay any additional expenses associated with a sewer connection. P objected to Woodring's (D) initial plan. Woodring (D) submitted a new proposal that avoided the need for an easement across P's property but did not avoid the annexation of P's property into the Sewer District. After some negotiation, P agreed to remove this objection to Woodring's (D) second proposal as consideration for the first of two agreements ('first contract'): In consideration for your cooperation in the expansion of the sewer district, we hereby agree to be responsible for any monetary impact this may have on your property. This would include Front Foot Benefit Charges, an increase in property taxes and if required, connection fees and cost of sewer service. Woodring's (D) sole proprietorship accepted the responsibility for filing any documents if an exemption is required. The agreement was to be for a period of 10 years from the date of sewer services availability. P sent a letter to the County and removed his objection to Woodring's (D) second proposal. Woodring (D) never sought an exemption on behalf of P. P renewed his objection less than one year later at a public hearing. The County reserved its decision on Woodring's (D) second proposal and provided Woodring (D) and P an opportunity to discuss possible solutions. The parties' negotiations produced a second agreement: At such time that Ashley Manor residential planned community is constructed, and the gravity sewer piping is installed ... to serve Ashley Manor, a small diameter force main will be installed from [the gravity sewer] to your residence. The force main as currently envisioned will be approximately one (1) inch in diameter ... The cost of installation of the force main will be borne entirely by the Ashley Manor developer. Woodring (D) assured P that the foregoing agreement incorporated the original contract. P removed his second objection to Woodring's (D) proposal and the County adopted a resolution to expand the Sewer District to include Ashley Manor and, P's property. Woodring (D) and his fellow investors entered into negotiations with Beazer (D), a home builder and dealer. Beazer (D) agreed to purchase Ashley Manor for $4,275,000. Beazer (D) reserved the right to walk away freely if dissatisfied with the information provided by Woodring (D). The parties twice executed amendments to the agreement which, together, extended the due diligence period to over 100 days. Beazer (D) had full access to all property details and then assigned the Agreement of Sale to Beazer's (D) general contractor, Ashley Manor, LLC, which ultimately settled on the property. Prior to closing, Woodring (D) and his investors assigned 'all their rights, title, and interest in all Plans and other Development Data prepared by and/or acquired by and utilized by Seller's engineer ... to secure the approval of the Preliminary Site Plan ...' Ashley Manor, LLC began construction of the retirement community and connected it to the Sewer District. The subcontractor responsible for Ashley Manor's sewer connection refused to connect P. Beazer (D) denied any knowledge of the P-Woodring (D) contracts and indicated that it had no intention of performing any obligation undertaken by Woodring (D). Woodring (D) claimed that Beazer (D) assumed his prior obligations at the time of its purchase of the Ashley Manor development. P alleges that Woodring (D) undertook a contractual obligation to connect his home to the Sewer District and failed to do so. P argues that Beazer (D) assumed Woodring's (D) obligation in connection with its purchase of the Ashley Manor development.