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El Dorado Hotel Properties, Ltd. v. Mortensen
Arizona Court of Appeals
136 Ariz. 292, 665 P.2d 1014 (1983)
Bruce Mortensen (defendant) purchased the El Dorado Country Club property from El Dorado Hotel Properties, Ltd. and the United Bank of Arizona (plaintiffs). The purchase agreement required installment payments and provided for a release of the deed to a portion of the property after each installment. The contract stated that Mortensen would be entitled to the release of a portion of the property upon payment of the first installment, which was due on March 1. Mortensen obtained an agreement that the first payment could be delivered on March 5, without defaulting. On March 3, Mortensen provided notice that he would be delivering the required documents to release the first parcel. The plaintiffs stated that they would not be reviewing the documents prior to receiving payment because there was not enough time. On March 4, Mortensen provided additional documentation regarding the parcel. On March 5, Mortensen delivered the installment payment to the title company and authorized the title company to release payment after the deed of release was recorded. The plaintiffs considered this a breach of the agreement because payment was conditioned on obtaining the release. The plaintiffs filed a foreclosure action the same day. The trial court granted summary judgment to the plaintiffs, ruling that the release of the deed to the parcel could not be completed simultaneously with the payment. Mortensen appealed.
Rule of Law
Holding and Reasoning (Birdsall, J.)
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