Opinion ID: 780630
Heading Depth: 2
Heading Rank: 2

Heading: The Alleged 1997 Agreement

Text: 5 In a February 1997 telephone conversation, Morse informed Cohen that the Rodens would not sign another option agreement with CDC, but he believed they would do so with JMJ. In an April 3 letter to Morse, Cohen noted that the Purchase Agreement had expired in November 1996 and stated that you [Morse] and I have discussed the potential ways our companies... may now be able to reach a new agreement, but noted that each time we sent you a written agreement, you tell me you have reconsidered the terms of our verbal understanding, have `changed your mind', or otherwise refused to proceed. Cohen further asked Morse to provide to [CDC] a carefully considered offer in writing, one with which you are comfortable, and stated: 6 I trust you agree that time is of the essence in determining, for each of us, the future coarse [sic] of the development and ownership of this project. I think we have been most patient in the past several months in waiting for a formalized agreement, and I do not see how we can protract this process much further. Accordingly, I ask that you provide a red-line or summary of what we can later incorporate into a more formal written agreement. 7 On April 8 Morse responded to Cohen's letter. He explained that with CDC's cooperation he could secure a long-term option on the Roden property, and that the parties would then have what they originally agreed to: 8 At this point, I believe our best course of action would be to determine how to secure a longer term option without either of us losing our previously agreed upon development interests. This can be accomplished, however, your full cooperation will be a necessity. Allow me to go make the business deal on the land and you will have what was originally agreed to, as will we. The only difference being we have a long-term option. 9 Although this letter was written on JMJ letterhead and contained Morse's signature, Morse did not sign the letter himself. CDC did not introduce at trial any evidence to establish who actually signed the letter, although Cohen testified that he believed it was signed by Morse's secretary. 10 On May 6, Cohen responded to Morse's letter, stating that we have agreed to accept your [April 8, 1997] offer. He also summarized his understanding of the deal, which was that CDC would allow JMJ to reach an agreement with the Rodens to purchase their property, and JMJ would then transfer 75 acres and $225,000 to CDC: 11 It is our understanding that we will allow you to make the business deal on the property, as you proposed. In so doing, you and I will each end up with the respective interests previously agreed upon, as follows: immediately upon your purchase of the property, you will retain sixty acres for your retail development and will then convey, or cause to be conveyed to us, to us [sic] the residual seventy five acres along with a $225,000 net cash profit. 12 Cohen testified at trial that in a subsequent telephone conversation, Morse assured Cohen that they would proceed according to the understanding outlined in Cohen's May 6 letter. After Cohen's May 6 letter, CDC refrained from contacting the Rodens to either exercise or extend its Option, though it did discuss the Roden property with other developers and investors in case the agreement with JMJ fell through. 13