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Allen v. Cedar Real Estate Group
United States Court of Appeals for the Seventh Circuit
236 F.3d 374 (2001)
Thomas Keith Allen (plaintiff) offered in writing to purchase a parcel of land from Cedar Real Estate Group, LLP (Cedar) (defendant). Allen conditioned the offer on receipt of an acceptable environmental audit. Cedar came back with a counteroffer, which Allen accepted. The audit revealed the need for expensive environmental remediation. The parties disagreed as to who should bear the costs of that cleanup. Allen cited a state law that, in the absence of a buyer’s waiver, made a seller partially responsible for the costs of cleaning up an environmentally contaminated property. After several months of fruitless negotiation, Cedar informed Allen that it would sell the parcel to a third party. Allen brought a federal-diversity action against Cedar to enforce what Allen claimed was a binding land-sales contract. The district court ruled for Cedar, and Allen appealed to the Seventh Circuit.
Rule of Law
Holding and Reasoning (Kanne, J.)
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