California Supreme Court Agrees to Review Sterling v. Taylor Case in Dispute over What Constitutes Binding Agreement for Sale of Real Estate

Business Wire, May 3, 2004

Business Editors

LOS ANGELES--(BUSINESS WIRE)--May 3, 2004

The California Supreme Court has granted a petition for review in the case of Sterling v. Taylor, a civil matter that raises an important consideration of whether various unsigned notes and informal conversations can be pieced together to establish a binding contract for the sale of real property.

In the case, real estate mogul Donald Sterling alleged that his self-prepared and unsigned informal notes -- together with a signed receipt -- constituted an agreement by Mr. Lawrence Taylor to sell a small group of buildings in Santa Monica for a price of $14.5 million, rather than the $16.75 million price that Mr. Taylor verbally suggested might be acceptable. Mr. Taylor prevailed in the Los Angeles County Superior Court, but the Court of Appeal reversed that judgment in November 2003 and sent the matter back for trial. The California Supreme Court granted Mr. Taylor's petition for review in March 2004 but is not expected to issue its ruling until at least 2005.

Mr. Taylor is represented by Jeffrey S. Wruble and Geoffrey F. Bogeaus, attorneys in the Los Angeles office of Buchalter, Nemer, Fields & Younger.

"There is an important and fundamental question raised by this case," said Mr. Wruble. "Can you have an informal conversation with a business associate, during which the business associate produces some vague notes, and then cause those to be pieced together to result in a binding contract? This case ultimately raises the issue of whether a contract needs to be in writing and clearly agreed to by both parties in order to be enforceable in California."

To arrange for a briefing on the case and an explanation of the crucial issues it raises regarding what constitutes a binding contract for the sale of real property and other goods in California, please call Daryn Teague (public relations consultant) at 661.297.5292 or email dteague@teaguecommunications.com.

Founded in 1948, Buchalter, Nemer, Fields & Younger is a California law firm with more than 140 attorneys. The firm represents clients in several major areas of practice: Bank and Finance; Business Practices; Insolvency; Litigation; and Real Estate. The firm is headquartered in Los Angeles and also has offices in San Francisco and Irvine. Buchalter's professionals provide a range of legal services across an array of industries, in local, regional, national and international venues. For more information, please go to www.buchalter.com.