308 A.3d 1215
D.C.2024Background
- Mahmood Nawaz (Appellant) entered a contract with the Trustee (Batchelor) to buy a four-unit property in D.C.
- The Trustee and Bloom Residential, LLC held all tenant rights under the District's Tenant Opportunity to Purchase Act (TOPA).
- Key tenants assigned their TOPA rights: Units #2 and #4 tenants to Trustee; Unit #1 tenants to Bloom Residential, which then exercised the purchase right.
- Bloom Residential and the Trustee entered a contract to purchase; title insurance was blocked due to Nawaz’s refusal to release his prior contract.
- The Trustee and Bloom sued Nawaz for a declaratory judgment that their contract had priority under TOPA and for tortious interference; Nawaz counterclaimed, arguing his contract was still valid.
- Superior Court awarded summary judgment to the Trustee and Bloom Residential and ordered attorney fees and security; Nawaz appealed.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether Bloom Residential’s contract superseded Nawaz’s contract under TOPA | Nawaz’s contract was superior since "TOPA compliance" occurred before Bloom signed; assignment of rights to Trustee/Bloom gives no priority | Only the assignment of Unit #1 to Bloom Residential mattered; Bloom’s exercise of rights supplanted Nawaz’s conditional contract | For Trustee/Bloom: Bloom Residential's exercise of TOPA right made its contract superior as a matter of law |
| Did the Bloom Residential contract expire and thus lose priority after missing the December 15, 2020, closing? | Bloom Residential contract became void after missed deadline; no evidence of extension | Nawaz’s refusal to release his contract blocked closing; intent and actions showed Bloom still wanted to perform | For Trustee/Bloom: Nawaz’s obstruction prevented closing, so Bloom's contract did not lapse |
| Was Nawaz entitled to discovery before summary judgment under Rule 56(d)? | Needed discovery on tenants’ status/assignments and Trustee actions | Discovery requests were untimely/generic and did not seek material facts | For Trustee/Bloom: Nawaz not diligent; no entitlement to discovery |
| Was it proper to order Nawaz (a counterclaimant) to post security for costs under D.C. Code § 15-703(a)? | Not addressed | Statute applies only to initial plaintiffs, not counterclaimants | For Nawaz: Statute does not apply to counterclaimants; sanction vacated |
Key Cases Cited
- 1618 Twenty-First St. Tenants’ Ass’n v. Phillips Collection, 829 A.2d 201 (D.C. 2003) (TOPA’s purpose: protect tenants by giving first refusal opportunity before third-party sale)
- Allman v. Snyder, 888 A.2d 1161 (D.C. 2005) (TOPA rights can be broadly assigned to third parties)
- William J. Davis, Inc. v. Tuxedo LLC, 124 A.3d 612 (D.C. 2015) (Third-party purchase rights always conditional on tenant exercise under TOPA)
- Richman Towers Tenants’ Ass’n, Inc. v. Richman Towers LLC, 17 A.3d 590 (D.C. 2011) (TOPA to be broadly construed in favor of tenants)
- Morrison v. Branch Banking & Trust Co. of Va., 25 A.3d 930 (D.C. 2011) (Details on broad assignment of tenant rights under TOPA)
- Oparaugo v. Watts, 884 A.2d 63 (D.C. 2005) (Points not preserved in trial court generally not reviewed on appeal)
