A Lackawanna County jury Tuesday awarded a Dunmore man $100,000 in a breach-of-contract case involving the failed sale of one of the largest private homes in the region.
Clarks Summit-based Classic Properties and the would-be buyer, Irwin Berman, now of Clifford Twp., were defendants in the suit, over a required $100,000 down payment that was to be made to Frank Rasieleski, owner of the Dunmore home known as Belle Reve.
Classic Properties' attorney Brett Woodburn of Harrisburg said he and Classic Properties' broker, Steven Farrell, are considering an appeal.
"I'm puzzled by the decision because the money awarded was never there," Mr. Woodburn said of a situation he described as a Catch-22 for Classic Properties.
At issue were checks totaling $100,000, Mr. Berman's down payment on the home at 24 Tiffany Drive made in 2003. But Mr. Berman told his agent, Mr. Farrell, to not deposit the checks. The accounts, Mr. Berman testified, would be funded when he secured financing on the $2.9 million home. When the sale fell through, Mr. Rasieleski wanted the $100,000.
Mr. Woodburn argued Mr. Rasieleski, who was represented by another agent at Classic Properties, was informed of the nonpayment of the deposit. Mr. Rasieleski denied being informed.
Jurors focused on the contract between Classic Properties and Mr. Rasieleski, which required timely deposit and escrow of funds.
Mr. Rasieleski's attorney, Michael Mey of Scranton, called the case "a fairly straightforward contractual matter" that requires the broker hold the deposit in cash.
Contact the writer: dfalchek@timesshamrock.com
Correction: A story in Monday’s editions mistakenly reported that Steven Farrell, broker-owner of Classic Properties, is a defendant in a breach-of-contract suit involving the unconsummated sale of one of the region’s most expensive homes. In fact, Mr. Farrell was dropped as a defendant in the suit, although his company remained a named party. The story also said Mr. Farrell’s broker’s license was suspended in connection with the deal. Mr. Farrell, in fact, was fined $17,000 by the state Real Estate Commission, but his license was not technically suspended.