PDQ Lube Center, Inc. v. Huber

On September 17, 1993, PDQ Lube Center Services, Inc. (PDQ) (plaintiff) offered to purchase real property from R. Lowell Huber (defendant) for $125,000.00. On September 22, 1993, Huber accepted PDQ’s offer. The contract required PDQ to apply for a loan within seven days. It further required PDQ and the property to qualify for the loan within 60 days of acceptance. The property would be deemed qualified if it was appraised at no less than the value of the purchase price. The closing date was set for December 15, 1993. The parties later added an addendum to the contract to address possible contamination of the property due to the prior operation of a gas station on the premises. Huber agreed to obtain an environmental clearance and to remove underground tanks from the property upon PDQ’s payment of a $4,000.00 cleanup deposit. The contract included an integration clause and a provision stating that time was of the essence. PDQ timely sought financing pursuant to the contract. Huber received the $4,000.00 deposit from PDQ but did not remove the tanks after learning that the previous owners would not assist in removing the tanks. PDQ ultimately did not obtain a loan or appraisal, and the transaction did not close. PDQ brought suit against Huber for breach of contract. The trial court found that Huber failed to act in good faith by failing to remove the tanks. It also found that its conduct prevented PDQ from formally applying for a loan and obtaining an appraisal, due to the fact that applying for a loan and conducting an appraisal before the tanks were removed would have been futile. The trial court therefore granted PDQ specific performance, requiring Huber to obtain an environmental clearance and to convey the property to PDQ if PDQ tendered the purchase price within 84 days after the environmental clearance was obtained. Huber appealed.