Court affirms that GMSR client did not anticipatorily breach real estate contract by seeking cancellation of escrow

Guerrero v. Cordova Associates, Inc. (2008) 2008 Cal.App. Unpub. LEXIS 1582 (California Second District Court of Appeal, Division Four) [unpublished]. A real estate buyer contracted to buy property from the seller, GMSR’s client. The seller deposited a deed into escrow. Instead of depositing the purchase price in escrow, the buyer argued about zoning. The seller sought to cancel the escrow and eventually sold to another buyer. The buyer sued for specific performance, seeking the profits of the resale. The trial court initially found that the seller’s attempt to cancel the escrow was an anticipatory breach. GMSR successfully moved to vacate the judgment on the ground that the buyer’s failure to deposit the purchase price was not excused by the seller’s attempt to cancel the escrow, because the seller’s deposit of a grant deed into escrow is an irrevocable act. The Court of Appeal agreed and affirmed the judgment for the seller. GMSR attorneys Bob Olson and Alana Rotter represented the seller in post-trial proceedings and on appeal.