Facts

Plaintiff Terry Fleming Jr. purchased an interest in Havasu Lakeshore Investments LLC in 2004 for $625,000. Defendant Victor Peloquin, Havasu Lakeshore's managing member, agreed to purchase Fleming's membership interest in Havasu Lakeshore for $625,000 plus 15 percent interest per year, if Fleming exercised an option memorialized in a written option agreement. The option agreement required Fleming to exercise the option "on, and not before, Aug. 20, 2009." Fleming notified Peloquin of his intent to exercise the option on July 9, 2009 but did not exercise the option on Aug. 20, 2009

PLAINTIFF'S CONTENTIONS:
Plaintiff contended that the option agreement had been modified by a subsequent written agreement and that his failure to exercise the option on Aug. 20, 2009 was not a breach of the option agreement.

DEFENDANT'S CONTENTIONS:
Defendant contended that the option agreement had not been modified by a subsequent written agreement and that the option expired on its own terms when Fleming failed to exercise it on Aug. 20, 2009.

Damages

Fleming claimed he was owed over $2.8 million in principal and interest under the terms of the option agreement.

Result

The court found the option agreement was not modified by a subsequent written agreement and that the option expired when it was not exercised on Aug. 20, 2009.

Other Information

FILING DATE: Sept. 7, 2012.