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COA rules on right of first refusal issue

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The Indiana Court of Appeals concluded that the right of first refusal set forth in a purchase agreement of land between neighbors could only be exercised between the two neighbors and didn’t apply to the sale of land by an estate.

Richard and Elizabeth Ryan purchased a piece of land from Russell and Mary Keen in 1972. According to a purchase agreement, the Ryans had right of first refusal if the Keens ever elected to sell their property adjacent to the Ryans’ land. After Russell and Mary died, the estate sold the property to another couple without providing the Ryans a chance to exercise the right.

The Ryans sued and, in turn, the estate of Mary Keen sued Agri-Town and Lawyers Title Insurance Corp., alleging those companies were contracted to perform a title search and issue/guarantee title insurance upon which the estate relied to convey clear title to the property. The search didn’t reveal any right of interest as alleged by the Ryans.

The trial court granted summary judgment for Agri-Town and Lawyers Title, finding the right of first refusal ended at the death of the last surviving seller, Mary, and was now unenforceable.  In Richard and Elizabeth Ryan v. Lawyers Title Insurance Corp. and Elaine E. English d/b/a Agri-Town Agency, No. 56A03-1101-PL-75, the Court of Appeals affirmed after examining the terms and language of the right of first refusal as set forth in the purchase agreement.

“We are not persuaded that the designated materials and the terms of the Purchase Agreement demonstrate clear evidence of the intent of the parties to the Purchase Agreement that the right of first refusal at issue here was to continue beyond the lifetimes of the Keens as the grantors of the right,” wrote Judge Elaine Brown. “If the parties to the Purchase Agreement had intended to bind each others’ heirs or personal representatives in connection with the rights of first refusal, they could easily have so provided.”

Judge John Baker concurred in a separate opinion.

 

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  1. I just wanted to point out that Congressman Jim Sensenbrenner, Senator Feinstein, former Senate majority leader Bill Frist, and former attorney general John Ashcroft are responsible for this rubbish. We need to keep a eye on these corrupt, arrogant, and incompetent fools.

  2. Well I guess our politicians have decided to give these idiot federal prosecutors unlimited power. Now if I guy bounces a fifty-dollar check, the U.S. attorney can intentionally wait for twenty-five years or so and have the check swabbed for DNA and file charges. These power hungry federal prosecutors now have unlimited power to mess with people. we can thank Wisconsin's Jim Sensenbrenner and Diane Feinstein, John Achcroft and Bill Frist for this one. Way to go, idiots.

  3. I wonder if the USSR had electronic voting machines that changed the ballot after it was cast? Oh well, at least we have a free media serving as vicious watchdog and exposing all of the rot in the system! (Insert rimshot)

  4. Jose, you are assuming those in power do not wish to be totalitarian. My experience has convinced me otherwise. Constitutionalists are nearly as rare as hens teeth among the powerbrokers "managing" us for The Glorious State. Oh, and your point is dead on, el correcta mundo. Keep the Founders’ (1791 & 1851) vision alive, my friend, even if most all others, and especially the ruling junta, chase only power and money (i.e. mammon)

  5. Hypocrisy in high places, absolute immunity handed out like Halloween treats (it is the stuff of which tyranny is made) and the belief that government agents are above the constitutions and cannot be held responsible for mere citizen is killing, perhaps has killed, The Republic. And yet those same power drunk statists just reel on down the hallway toward bureaucratic fascism.

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