Opinion ID: 1366293
Heading Depth: 1
Heading Rank: 2

Heading: Re: Medical Park Townhouse Limited Partnership

Text: Dear Buzzy: As per your recent discussion with William L. Sheppard; please be advised that the General Partners of the Medical Park Townhouse Project will purchase all Limited Partnership shares not sold. This project will be completed as outlined to you. Sincerely, Medical Park Townhouses Andrew L. Clark, General Partner William L. Sheppard, General Partner ALC/WLS/mai (Emphasis in original). The financing for the project was finalized on September 16, 1983. A deed of trust and a promissory note in the principal sum of $1,000,000 were executed by the defendants for the limited partnership. These were assigned to the Bank in an instrument of even date. Only thirteen of the townhouse units were completed by the defendants as planned. Payments on the promissory note became delinquent and, on April 7, 1986, the property was sold at auction as provided in the deed of trust. The Bank purchased the project for the sum of $525,000. On July 19, 1985, the Bank filed this suit against the defendants individually. In its complaint, the Bank asserted that the August 31, 1983 letter from the defendants memorialize[d] defendants [ sic ] commitment to plaintiff to assure an equity commitment of $625,000 to the Project by their agreement to purchase all limited partnership shares not sold in Townhouses at a price of $25,000 per share. The Bank requested either $625,000 in damages or specific performance of the contract. On October 23, 1986, the Bank moved for summary judgment and attached to its motion affidavits by Kennett, Wilkinson, and an attorney involved in the financing. The defendants responded to the motion with their own affidavits. Also provided by the parties were deposition transcripts and other discovery items. On January 7, 1987, the circuit court entered summary judgment for the Bank. In its memorandum opinion, the court concluded as a matter of law that the letter of August 31, 1983, from defendants to Wilkinson [was] a personal commitment by the defendants to purchase all partnership shares not sold. The court found that nineteen of the partnership shares remained unsold, and entered judgment for $475,000 plus interest.