Grant v. Kahn

18 A.3d 91 (2011)

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Nature of the Case

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Facts

On May 29, 2007, D and Ganz entered into the contract whereby D agreed to purchase, and Ganz agreed to sell, the property for the sum of $320,000. The contract included a financing contingency provision under which D had to file a form indicating that he successfully obtained financing, thus releasing the contingency. On July 20, 2007, while the contract remained executory, P filed a Complaint for Confession of Judgment, which resulted in the circuit court entering a Judgment by Confession against Ganz on July 24, 2007, in the amount of $148,929.52, plus interest of $1,094.10 and attorney's fees of $22,339.43. On July 31, 2007, D and Ganz closed on the sale of the property. On March 27, 2008, P filed a request for Writ of Execution by Levy. On April 4, 2008, D filed a Motion to Release Property from Judgment Levy. The circuit court denied D's motion. D appealed. D argues that the doctrine of equitable conversion prevented the judgment against Ganz from attaching to the property. Ps contend that the financing contingency remained unsatisfied and unremoved at the time that the confessed judgment was entered against Ganz, and thus equitable conversion had not occurred to prevent the judgment from attaching to the property.