Steuart v. McChesney

Steuart (defendant) and her late husband gave the McChesneys (plaintiffs) a right of first refusal on a farmland parcel, letting the McChesneys buy the property at the price listed on county and state tax assessment rolls if the Steuarts ever found another buyer. The property was actually worth about $50,000, but when the Steuarts received offers of $30,000 and $35,000, the McChesneys invoked their right and offered $7,820 — double the assessed value on the tax rolls. Steuart refused to sell at that price, and the McChesneys sued to compel the sale. The trial court found double the assessed value was a "mutual protective minimum price" and set the price at $35,000; the Superior Court reversed, and Steuart appealed.