Rentz v. Grant
Rentz v. Grant
Opinion
Patsy Rentz appeals from an order of the Madison Circuit Court partially granting Sarah Grant's motion for a summary judgment in an action commenced by Grant seeking Rentz's eviction from property owned by Grant and alleging breach of contract. We affirm.
Before moving into the house, Rentz performed significant renovations to the house at her own expense. She had the carpet removed, the floors refinished, new fixtures and flooring installed in the bathroom, and the interior walls repainted. Rentz moved into the house sometime in September 1996. From the start, Rentz made her rental payments directly to Smith, and Smith credited the payments against the debt owed him by Grant.
Rentz asserts that she was willing to undertake the cost of renovating the house because her arrangement with Grant was more than a rental agreement. Rentz contends that she entered into an oral agreement with Grant, whereby she would be allowed to purchase the house from Grant at a later date for $110,000, with part of the purchase price to come in the form of a credit for the expenses Rentz had incurred renovating the house.2 Rentz asserts that the cost of the renovations to the house was between $8,000 and $9,000.
Grant's version of the oral agreement is different. She insists that in the fall of 1996 she was not planning to sell the house and would not have set a purchase price at that time, and she maintains that she was not aware that Rentz was spending a large amount of money to renovate the house before moving in. Moreover, Grant asserts that the parties never finalized the specific terms of the agreement.
It is undisputed that there was no written lease detailing the rental agreement between Rentz and Grant nor was there a written contract memorializing the terms of any oral agreement for the sale of the house.
In April or May 2003, more than 6 years after Rentz began living in the house, Grant informed Rentz that she needed to sell the house in order to pay off her debt to Smith. Rentz contends that, at Grant's request, she mailed Grant an offer reflecting the original oral agreement reached by the parties in 1996. She alleges, however, that Grant informed her that she believed that the house was worth more than what Rentz alleges was the originally agreed upon price and that she intended to have an appraisal performed. Grant became upset after she received the results of the *Page 371 appraisal because the appraisal report showed that the house had fallen into significant disrepair.3 Despite the problems with the house, however, the appraisal report indicated that its appraised value had increased to $140,000.
Rentz asserts that Grant refused to respond to her written offer, and that when she made her rental payment for October 2003, she informed Grant that she would not make another payment until Grant had repaired the house or responded to her purchase offer.4
On October 15, 2003, Grant, through her attorney, sent Rentz a letter stating that she was terminating Rentz's tenancy as of November 30, 2003, as a result of Rentz's failure to maintain the house. The letter requested that Rentz move out. In the alternative, the letter contained an offer to sell the house to Rentz for $140,000, the then current appraised value. Rentz declined the offer to sell and refused to leave. Rentz did continue to make her monthly rental payments; however, she sent those payments to her attorney to hold in escrow until the dispute between her and Grant regarding the house was resolved.
As a defense, Rentz asserted that the two parties had an oral agreement concerning the purchase of the house. Rentz filed a counterclaim in which she alleged that Grant had breached the oral agreement by insisting on an increase in the purchase price. Rentz also alleged wantonness and unjust enrichment and sought specific performance of the oral agreement and damages.
In her answer to Rentz's counterclaim, Grant denied Rentz's allegations and asserted a variety of affirmative defenses, including the Statute of Frauds, §
On September 7, 2004, Grant moved for a summary judgment on all claims. On November 12, 2004, the circuit court entered a summary judgment in favor of Grant as to her eviction action and breach-of-contract claim and a partial summary judgment on Rentz's counterclaim. The circuit court ordered Rentz evicted from the house and ordered Rentz to pay Grant $9,100 in back rent. The circuit court denied the summary-judgment motion as to Rentz's claim of unjust enrichment.
On December 1, 2004, the circuit court certified the partial summary judgment as a final judgment under Rule 54(b), Ala. R. Civ. P., and Rentz appealed.
Moreover, when a movant makes a prima facie showing that he or she is entitled to a summary judgment by raising the affirmative defense of the Statute of Frauds, the burden then shifts to the nonmovant to come forward with substantial evidence that the Statute of Frauds does not apply, "`[e]ven though [the nonmoving party] may produce [evidence of] a genuine issue of material fact [on matters such as the terms or existence of a contract].'"Casey v. Travelers Ins. Co.,
It is undisputed, however, that Rentz and Grant did not enter into a written contract detailing this oral agreement. Grant argues, therefore, that even if the parties entered into an oral agreement for the sale of the house, that oral agreement is void under Alabama's Statute of Frauds, §
The Statute of Frauds provides, in pertinent part:
"In the following cases, every agreement is void unless such agreement or some note or memorandum thereof expressing the consideration is in writing and subscribed by the party to be charged therewith or some other person by him thereunto lawfully authorized in writing:
". . . .
"(5) Every contract for the sale of lands, tenements or hereditaments, or of any interest therein, except leases for a term not longer than one year, unless the purchase money, or a portion thereof is paid and the purchaser is put in possession of the land by the seller. . . ."
With the Statute of Frauds, the legislature identified "defined categories of oral promises that are especially subject to fabrication and especially unworthy of reliance or enforcement."Bruce v. Cole,
There is, however, one exception — the "partial performance" exception — that will withdraw oral agreements for the sale of land from applicability of the Statute of Frauds. Rentz relies on this exception in an attempt to save her oral agreement with Grant.
To satisfy the partial-performance exception, the putative purchaser must demonstrate that he or she has paid all or a portion of the purchase price and that he or she was put in possession of the land by the seller. Holman v. ChildersburgBancorporation, Inc.,
The fact that Rentz did not pay the portion of the purchase price she alleges she paid for the house in cash is immaterial.Gibson v. Bryant,
Even if Rentz could demonstrate partial payment, however, we conclude that the partial-performance exception is inapplicable here because Rentz has not satisfied the possession prong of the exception to the Statute of Frauds. The *Page 374
"acts of possession" necessary to satisfy the partial-performance exception "`must be clear and definite, and referableexclusively to the contract.'" Smith v. Smith,
Rentz relies on the partial-performance exception to save her oral agreement to purchase the house from Grant, yet as demonstrated by her own deposition testimony, her possession of the house can be explained fully by her status as lessee. It has long been established under Alabama law that "`possession taken as lessee, and continued without visible change, does not tend to prove that such occupant was put in possession of the land as purchaser by the seller, so as to meet [the partial-performance exception] of the [S]tatute of [F]rauds.'" Formby v. Williams,
During her deposition, when asked to explain the terms of her oral agreement with Grant, Rentz stated that "[t]he agreement was . . . [i]f I would rent the house for a period of time, then ata later date I could purchase the house for a hundred and ten thousand dollars . . . [and] as a down payment or as part of the purchase price, which I was to get back, I spent the money to renovate the house. . . ." (emphasis added). Later during her deposition when asked once again to characterize the oral agreement, Rentz stated: "I had to lease [the house] for at least three or four years before I could purchase that house." (Emphasis added.) Moreover, during the proceeding, Rentz stated:
"The agreement was that I paid rent and lived in that house. I paid a down payment on it. I fixed it. I moved into it. I paid rent until I could buy it. That was the agreement. I had to pay for it. I had to rent it for at least three years, three or four years, I had to do that which I did."
(Emphasis added.)
Viewed in a light most favorable to Rentz, the record clearly shows that Rentz took possession of the house as a lessee and had, at best, an option to the purchase the house. Rentz, therefore, has not demonstrated that her possession of the house relates exclusively to an agreement to purchase the house and not to her agreement to lease the house; thus, Rentz cannot rely on her possession as lessee to save her oral agreement to purchase the house from the operation of the Statute of Frauds. As a result, the oral agreement to purchase the house is void under the Statute of Frauds, and Rentz cannot assert it to defeat *Page 375 Grant's motion for a summary judgment.
AFFIRMED.
LYONS, WOODALL, SMITH, and PARKER, JJ., concur.
Reference
- Full Case Name
- Patsy Rentz v. Sarah Grant.
- Cited By
- 8 cases
- Status
- Published