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$2m Real Estate E-MAIL Deal Goes to Court in Historic Virginia Courtroom

By
Property Manager with Gibson Management Group, Ltd.

Long story short * mega Millionairess Patricia Kluge (ex of bizillionaire John Media Mogul Kluge) and her current husband Wm Moses are being sued by local high-dollar Realtor, Frank Hardy, over exclusive listing agreements for the Kluge/Moses 24-lot Vineyard Estates development around the corner and down the road from TJ's Monticello.


Hardy's $2m suit (the amount his real estate firm would earn if all lots sold at full price) is brought in Albemarle County Circuit Court * historically the ONLY court in the US where 3 presidents have practiced law.  VE's attorney requested dismissal of the suit because of an e-mail Hardy sent indicating that he would cancel the listing agreements in payment of $25,000 and written cancellation of the listing agreements.  Hardy's attorney argued SUCCESSFULLY that the two items requested in the e-mail were not received * the $25,000 and the cancellations * although his e-mail did suggest that VE's attorney prepare the cancellation agreements.  VE's attorney argued that Hardy's e-mail had no time limit on the conditions; however, the judge ruled it reasonable that Hardy and his team would want to be reimbursed for their work and expenditures during the time they represented the VE lots * the case is set for trial on April 2nd.

Kluge/Moses have since had a spec home in the subdivision go into and out of foreclosure as they re-purchased the property themselves; and they have signed an exclusive listing agreement with Sotheby's Internation Realty to market the $1m+ parcels.  To date, none have sold.

http://www.readthehook.com/blog/index.php/2010/02/26/trial-bound-hardy-v-kluge-moves-forward/

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Wallace S. Gibson is a Certified Property Manager with over 50 years of property management experience and expertise.  She maintains a specialized property management business in Central Virginia serving Albemarle, Greene, Fluvanna and Louisa counties  

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Comments(8)

Kathy Toth
Ann Arbor Market Center Keller Williams - Ann Arbor, MI
Ann Arbor Real Estate Experts - Kathy Toth Team

This should be interesting.  Since they are close to foreclosure, they are apparently in trouble as is the relatitonship.  Thanks for bringing this up.

Mar 14, 2010 10:27 PM
Wallace S. Gibson, CPM
Gibson Management Group, Ltd. - Charlottesville, VA
LandlordWhisperer

Kathy * they re-purchased their spec-home from foreclosure * just moved some financing chess pieces...I'm curious about the e-mail offer and the circuit court ruling...this may go to higher court given the amount of $$$

Mar 14, 2010 10:32 PM
Andrea Swiedler
Berkshire Hathaway HomeServices New England Properties - New Milford, CT
Realtor, Southern Litchfield County CT

Wallace, very interesting. I am curious as to how this is going to play out.

Mar 14, 2010 10:35 PM
Roy Kelley
Retired - Gaithersburg, MD

Interesting case. Real estate agents need to have deep pockets if they plan to take this type of legal action.

Mar 14, 2010 11:09 PM
Wallace S. Gibson, CPM
Gibson Management Group, Ltd. - Charlottesville, VA
LandlordWhisperer

Hardy's main real estate office is a 1 minute walk from the courthouse and I am unfamilar with his attorney.  Defendants want to settle - I suspect they do not want the bad-press for the sale of their other 23 lots!!

Mar 14, 2010 11:13 PM
Broker Nick
South Florida Real Estate & Development, Inc. - Coconut Creek, FL
Broker Nick Relocation Broker Service

Congratulations this post is now featured in the Silent Majority Group of Active Rain.

Mar 15, 2010 12:22 AM
Broker Nick
South Florida Real Estate & Development, Inc. - Coconut Creek, FL
Broker Nick Relocation Broker Service

Wallace - This is why Silent Majority is so important in AR - thank you for posting this most important real estate news.

Mar 15, 2010 12:30 AM
Wallace S. Gibson, CPM
Gibson Management Group, Ltd. - Charlottesville, VA
LandlordWhisperer

The e-mail from Hardy is going to make RE law since it was an Offer In Compromise to the sellers....if they wanted to take it * write the check and forward the cancellations!!!

Mar 15, 2010 01:20 AM