Phillip v. Marsh-Monsanto
Opinion of the Court
OPINION OF THE COURT
(May 30, 2017)
Nashville Phillip appeals the Superior Court’s May 8, 2015 judgment awarding Wilma Marsh-Monsanto $16,320.84 under a November 21, 2011 contract of sale for real property in St. Thomas. Because the Superior Court erred in interpreting and applying Marsh-Monsanto’s pleadings in this case, and erred in awarding her damages under an alleged separate “gentleman’s agreement” to pay more money for the property, which — as a matter of law — was unenforceable in light of the merger language of the operative sales contract, we vacate the judgment and remand this matter with directions for dismissal of Marsh-Monsanto’s complaint with prejudice.
I. FACTUAL AND PROCEDURAL BACKGROUND
On October 17, 2011, Marsh-Monsanto and Phillip entered into a contract of sale for Parcel No. 332-B and Remainder 332-B Estate Wintberg, St. Thomas. Under that contract, Phillip agreed to pay Marsh-Monsanto $140,000 for the property, subject to the precondition that he obtain a $135,000 mortgage loan to finance the purchase. Phillip made an initial $5,000 deposit, but was unable to obtain the required $135,000 mortgage loan because his bank appraised the property at $110,000.
In January 2012, the parties closed the sale. Marsh-Monsanto signed a warranty deed in Phillip’s favor, and received the $110,000 purchase price under the second contract. After the sale, however, Marsh-Monsanto repeatedly contacted Phillip to obtain additional money under a promissory note relating to the same property. Phillip disputed signing a promissory note and considered the repeated contacts harassment, but nonetheless made an additional $1,000 payment before leaving St. Thomas to visit his family. When Phillip left, Marsh-Monsanto approached her long-time acquaintance and Phillip’s girlfriend, Maureen Jackson, to obtain the additional money. Jackson, who had witnessed the parties sign the first contract, was familiar with the terms of sale of that contract. Nonetheless, before making any payments to Marsh-Monsanto, Jackson first attempted to get in touch with Phillip to determine whether he still owed money for the property. Unable to reach Phillip and unaware of the existence of the second contract, Jackson made a number of payments to Marsh-Monsanto on his behalf in 2012. Later, when Phillip returned to St. Thomas, he notified Jackson that he did not owe any money for the property, and Jackson stopped all payments to Marsh-Monsanto.
On May 7, 2014, Marsh-Monsanto filed suit in Superior Court seeking $22,500 owed under the terms of a signed November 21, 2011 promissory note. Marsh-Monsanto alleged that under the terms of the promissory note, Phillip agreed to pay her $25,000 in $500 monthly installments for the property, but had only made three payments: $1,000 on May 3, 2012, $500 on July 24, 2012, and $1,000 on July 26, 2012. The Superior Court held a bench trial on March 6, 2015, and heard testimony from Marsh-Monsanto, Phillip, and Jackson.
During her case-in-chief, Monsanto called Jackson and questioned her at length about Plaintiff’s Exhibit 1, a photocopy of eight payment receipts dated between February and October 2012. Jackson testified to making and recording a number of the payments included in Plaintiff’s Exhibit 1, explaining that she did not know about the second contract and as a result, believed Phillip owed Marsh-Monsanto additional money
Marsh-Monsanto testified and admitted to entering into the second contract and receiving the $110,000 purchase price, but claimed that she and Phillip had also entered into a separate, earlier agreement, which she alternatively described as a “gentleman’s agreement” and as a “letter.” She explained that under the terms of that agreement, Phillip agreed to pay her the $30,000 difference in purchase price between the first and second contracts in $500 monthly installments. She further explained that the $22,500 sum sought in her complaint represented the $30,000 balance minus Phillip’s initial $5,000 deposit and $2,500 in subsequent payments. Although she claimed the agreement was in writing, she did not produce it at trial, instead relying on the “amount due” indicated on the payment receipts included in Plaintiff’s Exhibit 1. When questioned by the court about the written agreement’s absence, she stated that she had mailed it to Phillip.
After Marsh-Monsanto rested, Phillip erroneously moved for a “directed verdict” instead of a motion for judgment on partial findings,
The Superior Court issued an oral ruling on April 16, 2015. The Superior Court held that the parties were bound under the second contract, and found that Phillip had paid Marsh-Monsanto $93,679.16 — an $88,679.16 check and a $5,000 deposit —■ toward the $110,000 purchase price. As a result, the Superior Court concluded that Phillip owed $16,320.84 to Marsh-Monsanto under the second contract. On May 8, 2015, the Superior Court entered its judgment. Phillip filed a timely notice of appeal.
II. JURISDICTION
“The Supreme Court [has] jurisdiction over all appeals arising from final judgments, final decrees or final orders of the Superior Court.” V.I. Code Ann. tit. 4, § 32(a). Because the Superior Court’s May 8, 2015 judgment disposed of all claims submitted to the court for adjudication, it was a final order, and we have jurisdiction over this appeal. Malloy v. Reyes, 61 V.I. 163, 171 (V.I. 2014) (citing Chapman v. Cornwall, 58 V.I. 431, 436 (V.I. 2013)).
III. DISCUSSION
Phillip argues that the Superior Court erred by denying his motion for judgment on partial findings because Marsh-Monsanto did not
Before we address the merits of Phillip’s argument, however, we must first establish the very element he seeks to challenge. This Court has not yet addressed the elements of a breach of contract claim under the analysis outlined in Banks v. Int’l Rental & Leasing Corp., 55 V.I. 967 (V.I. 2011). When addressing issues of Virgin Islands common law, we must engage in a three-factor analysis: examine which common law rule Virgin Islands courts have applied historically; identify the majority rule adopted in other jurisdictions; and most importantly, determine which common law rule is soundest for the Virgin Islands. Better Bldg. Maint. of the V.I., Inc. v. Lee, 60 V.I. 740, 757 (V.I. 2014).
Now, with the elements of breach of contract in mind, we evaluate the merits of Phillip’s appeal. Phillip’s challenge under the first element of Marsh-Monsanto’s breach of contract claim is premised on two underlying arguments. First, he argues that the court erred by awarding damages under the second contract, explaining that the court “ignored” undisputed evidence establishing that Marsh-Monsanto received the $110,000 purchase price under that contract, but sought the $30,000 difference in purchase price between the first and second contracts. Second, he argues that the court erred to the extent that it awarded damages under the pleaded promissory note, explaining that Marsh-Monsanto failed to produce a signed note at trial. We address each argument in turn.
A. The Superior Court’s Damages Award under the Second Contract
Phillip argues that the Superior Court erred in disregarding undisputed evidence established at trial, including for example, Marsh-
Since Marsh-Monsanto appeared as a pro se litigant, we interpret her pleadings and related statements with considerable lenience because of her “lack of formal legal training.” Hughley v. Gov’t of the V.I., 61 V.I. 323, 330 (V.I. 2014); accord Weary v. Long Reef Condo. Ass’n, 57 V.I. 163, 167 n.3 (V.I. 2012) (“[Cjourts typically exercise some degree of leniency toward pro se litigants who lack formal legal training!.]”); Etienne v. Etienne, 56 V.I. 686, 691 n.5 (V.I. 2012) (“[I]t is our policy to give pro se litigants greater leeway in dealing with matters of procedure and pleading.” (brackets, citation, and internal quotation marks omitted)). That lenience has limits, however. See Simpson v. Golden, 56 V.I. 272, 280 (V.I. 2012) (“[S]elf-representation is not a license [excusing compliance] with relevant rules of procedural and substantive law.” (citation and internal quotation marks omitted)). The court may not “ ‘assume the role of advocate’ ” or “ ‘rewrite [pleadings] to include claims that were never presented.’ ” Barnett, 174 F.3d at 1133 (quoting Parker v. Champion, 148 F.3d 1219, 1222 (10th Cir. 1998)); accord Beaudett v. City of Hampton, 775 F.2d 1274, 1278 (4th Cir. 1985)
Marsh-Monsanto, throughout the course of this litigation, consistently sought relief under an agreement different from the second contract. During trial, she repeatedly conceded that she had received the $110,000 purchase price under the second contract for the property, explaining during court examination that she “let [Phillip] have the deed [for] $110,000 with the stipulation that [he] would pay [an additional] $30,000 in increments.” Notwithstanding Marsh-Monsanto’s consistent and clear description of her grievance, the Superior Court construed it under the second contract — not under a separate agreement — and awarded her damages. By disregarding Marsh-Monsanto’s consistent and clear description of her grievance, the Superior Court, in effect, rewrote her pleadings to include a claim that she did not intend to present. Therefore, the court erred when it awarded Marsh-Monsanto damages under the second contract because it misconstrued her pleadings.
B. The Superior Court’s Damages Award under the Promissory Note
Phillip next argues that the Superior Court erred to the extent that it awarded damages under the pleaded promissory note because Marsh-Monsanto failed to produce a signed note at trial. In her complaint, Marsh-Monsanto alleged that Phillip had breached a signed promissory note, which like the second contact, related to the sale of the property and
To determine whether a contract is ambiguous, we resort to principles of contract interpretation, keeping in mind that our primary
In this case, it is evident from the clear and unambiguous language of the second contract that the parties did not intend for the second contract and the pleaded promissory note to form a single agreement. See Happ v. Corning, Inc., 466 F.3d 41, 46 (1st Cir. 2006) (explaining that separate instruments are not interpreted as one contract where such interpretation would “undo plain language which makes perfect sense in context”); 11 Richard A. Lord, Williston on Contracts § 30:26 (4th ed., rev. vol. 2012) (explaining that, “two or more agreements, though of a similar nature and made between the same parties, will not be read together when the later one expressly states that
IV. CONCLUSION
The Superior Court erred in denying Phillip’s motion for judgment on partial findings because it misconstrued Marsh-Monsanto’s pleadings under the second contract and because Marsh-Monsanto’s pleaded promissory note is unenforceable under the clear and unambiguous language of the second contract. Therefore, we vacate the Superior Court’s May 8, 2015 judgment awarding Marsh-Monsanto $16,320.84 under the second contract and remand for further proceedings with directions that the Superior Court dismiss Marsh-Monsanto’s complaint with prejudice.
At the time of bench trial, a motion made at the close of a plaintiffs case-in-chief was properly entitled a motion for judgment on partial findings. Hodge v. McGowan, 50 V.I. 296, 306 & n.5 (V.I. 2008); see Sec’y of Labor v. Doyle, 675 F.3d 187, 199 n.28 (3d Cir. 2012) (evaluating “the court’s [directed verdict] decision as a ruling on partial findings of fact” (citation omitted)); Fed. Ins. Co. v. HPSC, Inc., Am F.3d 26, 32 (1st Cir. 2007) (“[W]e treat motions for judgment as a matter of law made during bench trials as motions for judgment on partial findings].]” (citations omitted)); Williams v. Mueller, 13 F.3d 1214, 1215 (8th Cir. 1994) (same); Ex parte Wood, 69 So. 3d 166, 169 n.3 (Ala. 2010) (same); Krafczik v. Morris, 2009 WY 53, 206 P.3d 372, 381 n.4 (Wyo. 2009) (same). We note that under Promulgation Order 2017-0001, 2017 V.I. Supreme LEXIS 22, Rule 50(a) of the Virgin Islands Rules of Civil Procedure now provides that this procedure will be in the form of a motion for judgment as a matter of law, made after a party has been fully heard on a matter.
The Superior Court signed its written judgment on May 7,2015, and entered it on May 8, 2015. Although Phillip prematurely filed his appeal on May 7,2015, we nonetheless treat it as if it was filed “on the date of and after the entry” of the judgment and consider it timely filed. V.I.S.Ct.R. 5(a)(1).
Phillip did not assert an affirmative defense under the Virgin Islands Statute of Frauds. As a result, that defense is waived. See Super. Ct. R. 32(b) (“Answers shall comply with Rules 8 and 9 of the Federal Rules of Civil Procedure.”); Fed. R. Civ. P. 8(c)(1) (“In responding to a pleading, a party must affirmatively state any avoidance or affirmative defense, including ... statute of frauds!.]”); Jewelers Mut. Ins. Co. v. N. Barquet, Inc., 410 F.3d 2, 11 (1 st Cir. 2005) (explaining that a defendant’s failure to raise a statute of frauds defense within its answer constituted waiver under the circumstances); Herremans v. Carrera Designs, Inc., 157 F.3d 1118, 1122-23 (7th Cir. 1998) (same); TCP Indus., Inc. v. Uniroyal, Inc., 661 F.2d 542, 547 (6th Cir. 1981) (same).
Accord Gaffney v. Riverboat Servs. of Ind., Inc., 451 F.3d 424, 451 n.29 (7th Cir. 2006) (“reviewing the [trial] court’s [motion for judgment on partial findings] order [by] evaluating the record as a whole”); Nieto v. Kapoor, 268 F.3d 1208, 1217 (10th Cir. 2001) (same); Duval v. Midwest Auto City, Inc., 578 F.2d 721, 724 (8th Cir. 1978) (same); Sears Roebuck & Co. v. Bd. of Tax Review of the Town of W. Hartford, 241 Conn. 749, 699 A.2d 81, 86 (1997) (same); PACCAR Fin. Corp. v. Howard, 615 So. 2d 583, 586-87 (Miss. 1993) (same); Citrini v. Goodwin, 68 N.C. App. 391, 315 S.E.2d 354, 360-61 (1984) (same); Ballard v. Rickabaugh Orchards, Inc., 259 Ore. 200, 485 P.2d 1080, 1082 (1971) (same).
See, e.g., Emps.’ Benefit Ass’n v. Grissett, 732 So. 2d 968, 975 (Ala. 1998); Am. Computer Inst., Inc. v. State, 995 P.2d 647, 651 (Alaska 2000); Ark. Realtors Ass’n v. Real Forms, LLC, 2014 Ark. 385, 442 S.W.3d 845, 852 (2014); San Mateo Union High Sch. Dist. v. Cnty. of San Mateo, 213 Cal. App. 4th 418, 152 Cal. Rptr. 3d 530, 548 (2013); W Distrib. Co. v. Diodosio, 841 P.2d 1053, 1058 (Colo. 1992); Meyers v. Livingston, Adler, Pulda, Meiklejohn & Kelly, P.C., 311 Conn. 282, 87 A.3d 534, 540 (2014); Tsintolas Realty Co. v. Mendez, 984 A.2d 181, 187 (D.C. 2009); Brown v. Guinn, 970 N.E.2d 192, 196 (Ind. Ct. App. 2012); Berryhill v. Hatt, 428 N.W.2d 647, 652 (Iowa 1988); Stechschulte v. Jennings, 297 Kan. 2, 298 P.3d 1083, 1098 (2013); Woody v. Tamer, 158 Mich. App. 764, 405 N.W.2d 213, 216-17 (1987); Lyon Fin. Servs., Inc. v. Ill. Paper & Copier Co., 848 N.W.2d 539, 543 (Minn. 2014); Keveney v. Mo. Military Acad., 304 S.W.3d 98, 104 (Mo. 2010 ); Murphy v. Implícito, 392 N. J. Super. 245, 920 A.2d 678, 689 (App. Div. 2007); Pillsbury v. Blumenthal, 1954-NMSC 066, 58 N.M. 422, 272 P.2d 326, 329 (1954); Poor v. Hill, 138 N.C. App. 19, 530 S.E.2d 838, 845 (2000); WFND, LLC v. Fargo Marc, LLC, 2007 ND 67, 730 N.W.2d 841, 848 (2007); Lawrence v. Lorain Cnty. Cmty. Coll., 127 Ohio App. 3d 546, 713 N.E.2d 478, 480 (1998); Lincoln Farm, L.L.C. v. Oppliger, 2013 OK 85, 315 P.3d 971, 977 (2013); Kantor v. Boise Cascade Corp., 15 Ore. App. 698,708 P.2d 356, 359 (1985); CoreStates Bank, N.A. v. Cutillo, 1999 PA Super 14, 723 A.2d 1053, 1058 (1999); Weitzel v. Sioux Valley Heart Partners, 2006 SD 45, 714 N.W.2d 884, 894 2006); Crown Asset Mgmt., L.L.C. v. Loring, 294 S.W.3d 841, 848 (Tex. App. 2009); Ulloa v. QSP, Inc., 271 Va. 72, 624 S.E.2d 43, 48 (2006); Jacob’s
See also United States v. Wilson, 699 F.3d 789, 797 (4th Cir. 2012) (reviewing court’s construction of a pro se litigant’s motion for relief from judgment for abuse of discretion); In re Jones, 670 F.3d 265, 267, 399 U.S. App. D.C. 300 (D.C. Cir. 2012) (same); People v. Smith, 386 Ill. App. 3d 473,898 N.E.2d 119, 125, 325 Ill. Dec. 386 (2008) (reviewing court’s construction of a pro se post-conviction petition for an abuse of discretion); In re Verizon Wireless Barton Permit, 188 Vt. 262, 6 A.3d 713, 721 (2010) (reviewing court’s construction of pro se litigants’ filings for an abuse of discretion).
Because Marsh-Monsanto did not challenge the validity of the second contract, we decline to address circumstances in which extrinsic evidence may be admissible to demonstrate an intent different from that expressed in the contract. Nevertheless, we note that numerous courts recognize that a merger clause does not bar the introduction of extrinsic evidence amounting to fraud, among other circumstances. See, e.g., Blackledge v. Allison, 431 U.S. 63, 75 n.6, 97 S. Ct. 1621, 52 L. Ed. 2d 136 (1977) (“[E]ven a written contractual provision declaring that the contract contains the complete agreement of the parties, and that no antecedent or extrinsic representations exist, does not conclusively bar subsequent proof that such additional agreements exist and should be given force.... [Such a provision] can be set aside by a court on the grounds of fraud, mistake, duress, or on some other ground that is sufficient for setting aside other contracts.” (citation and internal quotation marks omitted)); Infiniti of Mobile, Inc. v. Office, 727 So. 2d 42, 46 (Ala. 1999) (“[A] merger clause does not bar the admission of parol evidence to prove fraud in the inducement of the contract^]”);
Phillip also challenged the Superior Court’s exclusion of a number of his proposed exhibits. Since Marsh-Monsanto’s pleaded promissory note is unenforceable under the clear and unambiguous terms of the second contract, we need not address these evidentiary issues as part of this appeal.
Case-law data current through December 31, 2025. Source: CourtListener bulk data.