Scottsdale, Arizona — Provident Law® is pleased to announce the successful outcome in a complex real estate arbitration involving the failed purchase of two multi-family investment properties in Phoenix, Arizona.
Attorneys Timothy Watson and Tyler Stine represented the sellers in the escrow deposit dispute arising from the buyer’s purported cancellation of two purchase agreements totaling $6.3 million. The buyers alleged nondisclosure and on that basis, sought to cancel the purchase contract after the expiration of key inspection periods and sought to keep an escrow deposit in excess of $100,000.
Following discovery, motion practice, and the multi-day arbitration hearing, the arbitrator issued the Arbitration Award in favor of Provident Law’s clients, finding that the buyers wrongfully terminated the agreements.
As a result, the arbitrator ruled that Provident Law’s clients are the prevailing parties and are entitled to recover:
- The $150,000 earnest money deposit, plus accrued interest, as liquidated damages; and
- Attorneys’ fees and costs, pursuant to the parties’ agreements and Arizona law.
This decision highlights that commercial real estate contracts that contain due diligence periods are not mere suggestions but enforceable terms that must be followed. Escrow agreements and deposits exist to bind parties to agreements. A buyer’s failure to follow contractual terms can obligate a buyer to forfeit escrow deposits as seen in this case
Provident Law® continues to represent clients in high-value business and real estate disputes across Arizona.
Timothy Watson is the Senior Litigation Partner at Provident Law®. He is a trial advocate with more than 24 years of experience in high profile, high value litigation. He has successfully tried numerous cases in state and federal courts including multi-million dollar claims in the areas of business litigation, real estate, high net worth probate, injury and insurance matters. As a former Assistant Attorney General, Tim was lead trial counsel in some of the largest tort defense and consumer fraud cases in Arizona. He holds a Martindale Hubbell peer review rating of AV-Preeminent with high ethical standing. In addition to representing clients in large, complex litigation, Mr. Watson provides mediation and arbitration services. He can be reached at: Tim@ProvidentLawyes.com or at (480)388-3343.
Tyler Stine is an Associate Attorney at Provident Law®. He is a graduate of the University of Arizona James E. Rogers College of Law where he served as the Senior Articles Editor for the Arizona Journal of International and Comparative Law and a Student Editor of the Journal of Appellate Practice and Process. He formerly served as a judicial law clerk to Hon. Jennifer M. Perkins on the Arizona Court of Appeals, Division One. Today, Tyler’s practice focuses on real estate and commercial litigation matters. Tyler can be reach at tyler.stine@providentlawyers.com or at 480-388-3343.