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the Superior Court's October 27, 1992, final judgment, HJV
received the amount due under the terms of the note and mortgage
relating to the 1989 sale, and it received interest and nominal
damages relating to the incomplete 1991 sale. Both parties filed
notices of appeal. In its appeal, HJV requested additional
damages relating to the incomplete 1991 sale because, due to the
current depressed real estate market, the 19 lots would sell for
an amount much lower than provided in the original contract.
On December 30, 1992, the parties entered into a settlement
agreement relating to the remaining lots. Pursuant to the
settlement agreement, the Kramers conveyed 9 undeveloped lots
from the 1989 sale, and HJV conveyed 19 lots from the sale
scheduled to occur in 1991, to Whitehouse, a partnership created
in 1984 and composed of petitioner, the Olstein Family
Partnership and H-EAB-O (i.e., an S corporation owned by
petitioner). Petitioner believed that the settlement agreement
was the only feasible way to dispose of the lots (i.e., because
of the pending appeal of the Superior Court's decision Whitehouse
could not convey clear title and, even if Whitehouse had clear
title, the real estate market for undeveloped lots was depressed)
and resolve the dispute with the Kramers (i.e., due to the
Kramers' financial difficulties, it was unlikely that they could
pay any judgment in full). In addition, petitioner wanted to
avoid paying additional legal expenses relating to the appeal.
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Last modified: May 25, 2011