United States v. Turley, No. 16-7090 (10th Cir. 2017)Annotate this Case
Richard Turley appealed the grant of summary judgment in favor of the United States, acting on behalf of the United States Postal Service, awarding specific performance of an option to purchase real estate from Turley. The purchase option was contained in a lease of the premises that the Postal Service had renewed on several occasions. Turley argued on appeal: (1) the lease had expired when the Postal Service attempted to exercise the purchase option because he had not received notice that the government was exercising its final option to renew the lease; (2) even if the lease was renewed, the Postal Service did not properly exercise the purchase option because it continued to negotiate for a new lease after it purported to exercise the option; and (3) equity precluded enforcement of the purchase option because the Postal Service attempted to use the purchase option as leverage to negotiate a better lease agreement. The Tenth Circuit was not persuaded. The Court found the lease-renewal option was properly exercised when the notice was delivered to the proper address, even though Turley refused to retrieve it. And Turley has presented no legal or equitable doctrine that would forbid a party who exercises (and is bound by) an option to purchase from pursuing an alternative arrangement.