Johnson v. Schultz

HUNTER, Robert C., Judge.

In this case we consider who, between buyer and seller, bears the risk of loss in a residential real estate sale where the attorney who handled the closing misappropriated the remaining sales proceeds owed to the sellers from his trust account.1 The trial court resolved this issue against plaintiff-sellers, William Wood Johnson and Suzanne Wayne Johnson (“the Johnsons”) on summary judgment. After careful review, we reverse and remand.

I. Background

On 17 November 2005, defendant-buyers Timothy P. and Shelley D. Schultz (“the Schultzes”) entered into a written contract…