Real Estate Contract
Koehler v. Cunningham (The "Second Bite at the Apple" Case ) 61 Wash.App. 1011 (1991), rev. denied 117 Wash.2d 1027, 820 P.2d 511 (1991)
A homeowner advertised his waterfront home "for sale by owner." An attorney and her husband toured the home and made an offer on the spot. The homeowner agreed to provide short-term seller financing and the deal closed. A few years later, as the balloon payment approached, the attorney claimed the homeowner had misrepresented the condition of the property. She filed suit on behalf of herself and her husband. The attorney was later suspended from the practice of law and could not represent her husband. Thus, she was forced to retain separate counsel. Meanwhile, the homeowner's insurance company agreed to pay a settlement. Rick Lowell, on behalf of the homeowner, negotiated the settlement and terms. An agreement was reached between Rick and the retained counsel. Thereafter, the suspended attorney sought to renege on the deal. Rick brought a motion in Superior Court to enforce the agreement. The court conducted a three-day hearing in which Rick subpoenaed the attorney's retained counsel. He was forced to testify that his client had planned to back out of the deal with the hope she could force a larger settlement. The judge agreed to enforce the settlement. Rick successfully defended the enforcement order at the Court of Appeals and the Washington Supreme Court.