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Ann owns Blackacre Farm. She bought the property sight unseen from an ad she saw in the NY Times when she lived in NYC. Ann was disillusioned with being a high powered accountant, and she wanted to become a farmer instead. She bought the property from the original owners in whose family the farm had been run for generations. Ann utilized Betty acting as her local real estate agent to negotiate the $400,000 closing price on the farm. When Ann got to the farm, she was surprised to see it surrounded by industrial plants. Betty informed her that the property was in a local industrial zone, but as long as Ann used it for a farm the local Town Zoning Ordinance would allow Ann to farm there as had been done for generations before hand. Betty had no knowledge that the property had ever been used for anything other than a farm.

Unfortunately, after only a month, Ann came to realize that the job of being a farmer was simply too much work for her. Ann went back to betty and signed a exclusive real estate brokerage contract with Betty to sell the farm. The contract satisfied all the conditions of the Statue of Frauds, including detailing the asking price for the e farm of $400,000 and a commission to Betty for 5% of the sales price if Betty found a willing buyer. The same day, Betty comes by with David who is willing to purchase the property for the asking price of $400,000 cash payment and he is ready to close now. Ann refuses, thinking that maybe if she waits, she can sell the farm for more than the asking price.

The next day, Ann saw a small plane with the United States Department of Agriculture logo on it flying over her farm with some odd substance coming out of the tail of the plane. Suddenly, the puffy white clouds above her become a dark thunderstorm, and it started to rain furiously. Lightening struck Ann’s barn and burnt it to the ground.

The following day Ann goes to the Town Zoning Administrator, Charlie, for a building permit to rebuild the barn so Ann can try to sell the Farm. Charlie informs her that as the farm is in an industrial zone, and the property enacted Town of Richmond Zoning Ordinance will not allow her to rebuild the barn for agricultural purposes. He tells her that the plane Ann saw yesterday was an experimental cloud seeding plane from the United States Department of Agriculture trying new chemical to see if they can get rain to come from the clouds. Charlie adds: “Anyway why would you want to go back to farming that lot? Did you know the EPA was in here yesterday saying they had discovered an old toxic waste dump buried on the property that needs to get cleaned up. They are going to designate it as a Superfund site, and they are looking for the current land owner to pay for the clean up.” Just then, Betty comes by serving Ann with a lawsuit asking for the promised 5% commission on the aborted sale of the farm to David, as no one will want to buy the farm now that word is out it will become a Superfund site.

1. Discuss whether Betty is will likely win her lawsuit against Ann for the 5% commission on the $400,000 offer from David?

2. Discuss whether Ann can be held financially responsible for the cleanup of the farm if it is designated as a Superfund site?

3. Discuss whether the Town Zoning Administrator can legally stop Ann from rebuilding the barn if she chooses to stay and farm after the site is cleaned up?

4. Discuss whether Ann will be successful in any suit for damages against the United States Department of Agriculture for the cloud experiment and resultant damages thereon?