Alford v. Moore, Unpublished Decision (11-30-1998)
Alford v. Moore, Unpublished Decision (11-30-1998)
Opinion of the Court
Defendant-appellant and seller, Cynthia L. Moore, appeals the decision of the Clermont County Court of Common Pleas granting specific performance to plaintiff-appellee and buyer, Thomas Alford, based on the trial court's determination of a binding agreement for the sale of land. In addition, Moore challenges the trial court's denial of a counterclaim seeking damages due to a driveway built on the property in question. We affirm in part, reverse in part and remand.
Moore was the owner of one hundred seventeen acres of land in Goshen, but during the pendency of this case sold forty acres to a third party. Alford was a friend of Moore, and both Alford and his sons did work on the Moore property. The parties had for many years discussed Alford buying a parcel of land from Moore.
In November 1995, Moore signed a contract with Trout Lake Farm for the growing and harvesting of goldenseal, an expensive type of herb. Alford and his sons assisted Moore in planting the goldenseal crop which was completed in January of 1996. Moore was concerned that any property to be sold to Alford not include the goldenseal beds.
Fowler Agenbroad, a surveyor for Landsdale Surveying, agreed in an April 30, 1996 contract signed by Alford to survey the land that Alford intended to buy. Alford testified that Moore was aware of the survey, and Alford agreed to pay the surveyor. The job description on the contract is "15 acre Cut-Out, Legal Description, Closure, Plat." Agenbroad stated that "[t]he 15-acre cutout is the rough estimate of what size parcel we thought we were working with at the time we sent out the parcel." Agenbroad began his survey on June 3, 1996 and went to the property on a least four other occasions to complete the survey. According to Agenbroad, Moore witnessed the start of the survey on June 3, 1996 and was at the property during the survey on at least one other occasion. Agenbroad indicated that the partition line between the Moore property and the property to be sold to Alford was completed on June 26, 1996. The property to be sold included land where the goldenseal crop was being grown.
On June 14, 1996, Moore prepared a document on her home computer which stated:
Tom Alford — work on farm approximately fifteen acres at $5,000/acre
/s/ Cynthia Moore ----------------- sum of column C applied toward purchase price
/s/ Cynthia Moore -----------------
Below this language is a spreadsheet listing work on goldenseal crop completed by Alford, and its corresponding value. Trout Lake Farm was paying for Moore's work on the goldenseal crop, but the money was being held by Moore. On June 7, 1996, Alford gave Moore an additional $2,000 as earnest money toward the purchase of land. The final total of column C was $6,430.81.
Bill Smith, the Service Director for Goshen Township, testified about an application for approval of a driveway on the Moore property Alford intended to buy. According to the application, when the driveway was installed, Goshen Township must install adequate drainage through use of a culvert pipe. On March 19, 1996, Alford received permission to build the driveway by signing his name as the owner of the property. However, Alford did not complete construction of the driveway until June 1996. After the driveway was completed, Moore complained to Goshen Township about approving construction of the driveway on her property. However, Moore eventually signed the application for approval as owner because she was concerned, based upon advice from friends, about Alford becoming the owner through adverse possession.
Alford called Moore on or about June 26, 1996 and had a conversation about the survey. Alford testified that Moore was upset that the property was 10.877 acres, less than the fifteen acres originally estimated. On June 28, 1996, Alford received a letter from Moore's attorney advising Alford that he was trespassing on the property.
On July 12, 1996, Alford filed a complaint for specific performance and damages. Alford sought to have the 10.877 acres, as designated in a plat map and June 26, 1996 legal description, sold to him. On September 12, 1996, Moore answered and filed a counterclaim against Alford. The counterclaim alleged damage to the property by installation of the driveway. On October 10, 1997, Moore moved for summary judgment. The motion was denied by the trial court on December 9, 1997 and the case was tried on December 19, 1997. After Alford's case in chief, Moore's motion to dismiss was overruled. On January 2, 1998, the trial court found in favor of Alford and ordered the 10.877 acres of land sold to Alford for $5,000 per acre. Moore reserved the right to harvest the goldenseal crop on the 10.877 acres on or before December 1, 1999. Alford was given a credit of $6,340.81 previously contributed toward the purchase price. A March 19, 1998 final judgment entry indicates Moore's counterclaim was found to be without merit.
From the March 19, 1998 final judgment entry, Moore filed a timely notice of appeal and presents six assignments of error for our review:
Assignment of Error No. 1:
THE TRIAL COURT ERRED AS A MATTER OF LAW BY DENYING DEFENDANT'S MOTION FOR SUMMARY JUDGMENT, BECAUSE THE PLAINTIFF'S COMPLAINT FOR SPECIFIC PERFORMANCE IS BARRED BY THE STATUTE OF FRAUDS.
Assignment of Error No. 2:
THE TRIAL COURT ERRED AS A MATTER OF LAW IN THE APPLICATION OF A PREPONDERANCE OF EVIDENCE STANDARD TO AN ALLEGED ORAL CONTRACT FOR THE SALE OF REAL ESTATE.
Assignment of Error No. 3:
THE TRIAL COURT ERRED AS A MATTER OF LAW BY FINDING THAT PLAINTIFF'S EXHIBIT NO. 1 IS SUFFICIENT MEMORANDA SIGNED BY THE DEFENDANT WHICH, WHEN COUPLED WITH THE ORAL AGREEMENTS AND WRITTEN DOCUMENTS SUPPORTING SUCH MEMORANDUM CONSTITUTES A CONTRACT TO SELL.
Assignment of Error No. 4:
THE TRIAL COURT ERRED AS A MATTER OF LAW BY GRANTING PLAINTIFF'S COMPLAINT FOR SPECIFIC PERFORMANCE.
Assignment of Error No. 5:
THE DECISION OF THE TRIAL COURT IS AGAINST THE MANIFEST WEIGHT OF THE EVIDENCE.
Assignment of Error No. 6:
THE DENIAL OF DEFENDANT'S COUNTERCLAIM IS AGAINST THE MANIFEST WEIGHT OF THE EVIDENCE.
In the first and fourth assignments of error, Moore claims that the contract between the parties violates the statute of frauds, which requires certain contractual agreements, including the sale of land, to be in writing.1 In Ohio, the statute of frauds is codified in R.C.
No action shall be brought whereby to charge the defendant * * * upon a contract or sale of lands, tenements, or hereditaments, or interest in or concerning them, * * * unless the agreement upon which such action is brought, or some memorandum or note thereof, is in writing and signed by the party to be charged therewith or some other person thereunto by him or her lawfully authorized.
In order to satisfy the statute of frauds, the memorandum must (1) identify the subject matter, (2) demonstrate a valid contract between the parties and (3) state the essential terms with reasonable certainty. North Coast Cookies, Inc. v. Sweet Temptations, Inc. (1984),
In this case, the description of the land in the June 14 memorandum prepared and signed by Moore states "approximately 15 acres" as the parcel of land to be sold. It is clear that this description, in itself, is not a description sufficiently definite to satisfy the statute of frauds. However, Alford argues that the June 14 memorandum, signed by Moore, can be read in conjunction with a plat map describing the 10.877 acres surveyed and an overhead view of the property.2 However, Alford's approach is foreclosed by longstanding Supreme Court of Ohio precedent. In Thayer v. Luce (1871),
Several writings, though made at different times, may be construed together, for the purpose of ascertaining the terms of a contract required, by the statute of frauds, to be in writing and signed by the party to be charged therewith.If some only of such writings be so signed, reference must be specifically, made therein to those which are not so signed; but if each of the writings be so signed, such reference to the others need not be signed, such reference to the others need not be made, if, by inspection and comparison, it appears that they severally relate to or form part of the same transaction. (Emphasis added.)
See, also, Beggin v. Ft. Worth Mtge. Corp. (1994),
It is equally clear that parol evidence cannot be introduced to describe the property in question and, therefore, satisfy the statute of frauds. The Supreme Court of Ohio has stated that:
Parol evidence may be resorted to for the purpose of applying the description contained in a writing to a definite piece of property and to ascertain its location on the ground, but never for the purpose of supplying deficiencies in a description otherwise so incomplete or incorrect as not to identify the land. The description must be in itself capable of application to something definite before parol testimony can be admitted to identify any property as the thing described. (Emphasis added.)
Schmidt v. Weston (1948),
We are aware that Ohio recognizes that the equitable principle of partial performance may remove a contract from the requirements of R.C.
It is undisputed that Alford never had possession of the property in question. Appellant did modify the property in question by installing a driveway. While an addition to a property can contribute to a finding of partial performance, such improvement can remove an agreement from the statute of frauds only if the buyer had possession of the property. Even assuming the driveway constituted an improvement and Moore agreed to this improvement, Alford was not the owner of the 10.877 acres nor had he taken possession of the property. In any event, the record does not support Moore acting in a fraudulent manner.
Similarly, without possession, the partial payment by Alford, including but not limited to the $2,000 earnest money, does not in itself constitute partial performance in order to remove this case from the statute of frauds. Cf. France v. McKenzie (Senica C.C. 1899), 11 Ohio C.D. 245, aff'd (1900),
In an agreement for the sale of land, the only other possible exception to the statute of frauds is promissory estoppel. See, generally, Promissory Estoppel as Basis for Avoidance of Statute of Frauds (1974 Supp. 1998), 56 A.L.R.3d 1037. Promissory estoppel is defined as "[a] promise which the promisor should reasonably expect to induce action or forbearance on the part of the promisee or a third person and which does induce enforcement of the promisor." McCarthy,
It is not clear that Ohio even utilizes this exception to save an oral agreement for the sale of land. See Seale v. Citizens S
L Assn. (C.A. 6, 1986),
those in business to reduce their agreements to writing and thereby adhering to the policy considerations beyond the statute of frauds while at the same time providing a mitigating effect to the harsh application of the statute of frauds and assures fairness in business relationships by protecting one who relies to his detriment on the promise of another.
Id.
Appellant never promised to sell the 10.877 acres of land described in the June 26, 1996 legal description. The parties, at most, had an agreement to sell "approximately fifteen acres" of land. There is no evidence that Moore represented the June 14 memorandum complied with the statute of frauds, nor does the record show Moore promised to prepare a final memorandum that would meet the requirements of the statute of frauds. At best, the record indicates the parties disputed the boundaries of the parcel of land agreed to be sold and Moore backed out of the oral agreement.
Any equitable claim seeking to avoid the statute of frauds must constitute more than a potential seller refusing to comply with an oral agreement for the sale of land. If that act alone could vitiate the statute of frauds, R.C.
It must appear that the promise was used as a means of imposition and deceit. If the case taken as a whole is one of fraud, the verbal promise may be received in evidence as one of the steps by which the fraud was accomplished. To deduce the fraud from the [oral] contract and then give effect to the contract, on the score of fraud, is reasoning in a circle. The fraud which will give jurisdiction to compel performance of the parol * * * [agreement] must consist in something more than a mere breach of parol undertaking * * *.
Marion Credit Assn. v. Cochran (1988),
In closing our discussion, we note that it is precisely the type of dispute in this case which demonstrates the necessity of the statute of frauds. We agree with our sister court that "[a] signed writing provides greater assurance that the parties and the public can reliably know when such a transaction occurs. It supports the public policy favoring clarity in determining real estate interests and discourages indefinite or fraudulent claims about such interests." North Coast Cookies,
Since the agreement between the parties violates the statute of frauds, the contract cannot be enforced by specific performance. Accordingly, the trial court erred by granting specific performance in favor of Alford and the first and fourth assignments of error are well-taken. Therefore, this cause is remanded and the 10.877 acre parcel of land must be returned to Moore.4 Further, upon remand, the trial court must determine and order returned any and all money contributed by Alford to Moore for the purchase of the "approximately fifteen acre" parcel. This includes, but is not limited to the $2,000 earnest money Alford gave to Moore, money received from Trout Lake Farm and held by Moore for Alford's work on the goldenseal crop, as well as any interest, if appropriate by law. Due to the disposition of the first and fourth assignments of error, assignments of error two, three and five are overruled as moot.
In the sixth assignment of error, Moore argues that the denial of her counterclaim is against the manifest weight of the evidence. A decision of a trial court supported by competent, credible evidence will not be reversed as being against the manifest weight of the evidence. Seasons Coal Co. v. Cleveland (1984),
Judgment affirmed in part, reversed in part and remanded for proceedings not inconsistent with this opinion.
KOEHLER and POWELL, JJ., concur.
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