Shawn D. Bayliss, Esq.
Kimberly E. Williams, Esq.
Lester, Vieweg & Bayliss
Hunt & Serreno
Charleston, West Virginia
Charleston, West Virginia
Attorney for Appellants
Attorney for Appellees
The Opinion of the Court was delivered PER CURIAM.
Per Curiam:
This case is before this
Court upon appeal of a final order of the Circuit Court of Lincoln County
entered on May 15, 2000. Pursuant to that order, the circuit court granted
summary judgment in favor of the appellees and defendants below, Jerry and
Isalene Runion (hereinafter the Runions), in this action filed
by the appellants and plaintiffs below, Dan and Pamela Messer (hereinafter
the Messers), seeking specific performance to compel the Runions
to convey to them a one-acre tract of land located in Lincoln County. In this
appeal, the Messers contend the circuit court erred by granting summary judgment
based on the statute of frauds, W.Va. Code § 36-1-3 (1923).
This Court has before it
the petition for appeal, the entire record, and the briefs and argument of
counsel. For the reasons set forth below, the final order of the circuit court
is affirmed.
On August 1, 1997, the parties
entered into an installment land contract whereby the Messers agreed to pay
the Runions $55,000 for a house and 4.23 acres of land located in Sod, West
Virginia. The contract provided for a $600 down payment to be followed by
monthly payments of $800 for sixty-eight months.
(See footnote 1) On October 20, 1997, the
parties modified the contract by drafting a second agreement in which the
Runions agreed to sell the property to the Messers for a single cash payment
of $27,000, if they were able to obtain a loan by November 4, 1997. Otherwise,
the original agreement would become effective again on November 5, 1997.
(See footnote 2)
The Messers were successful
in securing a loan from a mortgage company, and closing was scheduled for
November 14, 1997. On that date, prior to the closing, the parties went to
Bill's License Service in Madison, West Virginia, and signed a third agreement
whereby the Messers agreed to allow the Runions to dig up fruit trees, shrubbery,
flowers, and strawberries from the property. The Messers further agreed to
allow the Runions to use a barn located on the property for storage.
(See footnote 3)
Thereafter, the parties went to the Preferred Mortgage Company in South
Charleston, West Virginia, and closed the transaction for the purchase of
the property.
Subsequently, the Messers
claimed the Runions had also agreed to give them a deed to a one-acre parcel
of land adjoining the 4.23 acres they purchased on November 14, 1997, once
the Runions had removed all of their personal property from both tracts. The
Messers claimed that prior to closing, the Runions agreed that the $27,000
purchase price included payment for the one-acre tract. After the Runions
repeatedly refused to provide the deed for the one-acre parcel, the Messers
filed suit in the Circuit Court of Lincoln County seeking specific performance
to compel the Runions to give them a deed to the one-acre tract. Following
discovery, the Runions filed a motion for summary judgment. The circuit court
granted the motion on May 15, 2000, finding that even if there was a contract
between the parties for the sale of the one-acre tract of land, the contract
was not in writing and therefore, not enforceable pursuant to the statute
of frauds. This appeal followed.
We
begin our analysis of this case by setting forth our standard of review. As
noted above, the circuit court granted summary judgment. Pursuant to Rule
56 of the West Virginia Rules of Civil Procedure, summary judgment is required
when the record shows that there is no genuine issue as to any material
fact and that the moving party is entitled to a judgment as a matter of law.
In Syllabus Point 3 of Aetna Casualty & Surety Co. v. Federal Ins.
Co. of New York, 148 W.Va. 160, 133 S.E.2d 770 (1963), this Court held:
A motion for summary judgment should be granted only when it is clear
that there is no genuine issue of fact to be tried and inquiry concerning
the facts is not desirable to clarify the application of the law.
This Court has also held that [a] circuit court's entry of summary judgment
is reviewed de novo. Syllabus
Point 1, Painter v. Peavy, 192 W.Va. 189, 451 S.E.2d 755 (1994). With
these standards in mind, we now consider the parties' arguments.
The
primary issue in this case is whether the circuit court erred in applying
the statute of frauds. As we have noted in prior cases, the underlying purpose
of the statute of frauds is to prevent the fraudulent enforcement of
unmade contracts. Timberlake v. Heflin, 180 W.Va. 644, 648, 379
S.E.2d 149, 153 (1989) (citation omitted). Accordingly, W.Va. Code §
36-1-3 (1923) provides that: Upon examination of the
written agreements between the parties in this case, we find no reference
to a one-acre tract of land. The first document the parties signed on August
1, 1997, clearly concerned only the 4.23 acres of land and the house located
on that property. Likewise, the second document, executed on October 20, 1997,
was limited to the same property because it specifically referred to the first
agreement the parties signed. Although the third agreement only referred to
the property being sold on November 14, 1997, a review of the
documents signed on that date shows that only 4.23 acres of land and a house
were sold at that time. In addition, the record contains an affidavit from
Nicholas W. Johnson, Esquire, the settlement agent at the closing on November
14, 1997. According to Mr. Johnson, neither party to the transaction informed
him that they had orally agreed to convey an additional acre of property during
the closing, nor was the one acre included in the purchase/sale that occurred
on November 14, 1997. Thus, based upon all the evidence, we find no written
agreement between the parties concerning the one-acre tract of land. Having determined that there
was no written agreement regarding the one- acre tract of land, we must now
consider whether the statute of frauds does in fact bar enforcement of the
alleged oral contract between the parties. In Syllabus Point 3 of Timberlake,
supra, this Court explained that,
The statute of frauds, as
applicable to contracts for the sale or lease of land, is a procedural bar
to prevent enforcement of oral contracts unless the conditions expressed in
W.Va.Code, 36-1-3, are met. The operation of the statute of frauds goes only
to the remedy; it does not render the contract void. As noted above, the Messers
contend that part performance has occurred in this case because they paid
the Runions $27,000 and took possession of the 4.23 acres of land. However,
the 4.23 acres of land are not at issue in this case. This case only relates
to the adjoining one-acre tract of land, and we find no evidence in the record
that the Messers have either taken possession of that property or made improvements
thereon. Moreover, there is no evidence to support the Messers' contention
that the $27,000 purchase price included payment for the one-acre tract. Therefore,
the doctrine of part performance is not applicable, and consequently, the
alleged oral contract for the sale of the one-acre tract of land is not enforceable
pursuant to the statute of frauds. Having found that the statute
of frauds applies in this case, we further find that no genuine issues of
material fact exist to preclude summary judgment. Accordingly, the final order
of the Circuit Court of Lincoln County entered on May 15, 2000, is affirmed.
No contract for the sale of
land, or the lease thereof for more than one year, shall be enforceable unless
the contract or some note or memorandum thereof be in writing and signed by
the party to be charged thereby, or by his agent. But the consideration need
not be set forth or expressed in the writing, and it may be proved by other
evidence.
The Messers contend that the
circuit court erred by applying the statute of frauds because the parties signed
written agreements concerning the sale of the property on August 1, 1997, October
20, 1997, and November 14, 1997. Essentially, the Messers claim that there were
written contracts for the sale of the land, but the terms were ambiguous thereby
creating genuine issues of material fact and precluding summary judgment. Alternatively,
the Messers claim that the statute of frauds does not apply because partial
performance of the contract has occurred given the fact that they paid the purchase
price and took possession of the 4.23 acres of land. In response, the Runions
claim that the record establishes that there was no written contract between
the parties for the sale of a one-acre tract of land.
As this statement suggests, there are some instances where equity demands
that the statute of frauds not be imposed. One such instance is where part
performance of a contract for the sale of real estate has occurred. In that
circumstance, the contract may be enforced even though it is not in writing.
Generally, the doctrine of part performance requires more than mere payment
of the purchase price. Holbrook v. Holbrook, 196 W.Va. 720, 724, 474
S.E.2d 900, 904 (1996), citing Syllabus Point 4, Gibson v. Stalnaker,
87 W.Va. 710, 106 S.E. 243 (1921), 8B M.J. Frauds, Statute of §
36 (Michie 1994). This Court has recognized that payment along with possession
of the property or improvements thereon by the vendee is necessary for the
doctrine of part performance to be applied as an exception to the statute
of frauds. Id.
Affirmed.
Footnote: 1
The document was signed by all four parties and was notarized.
I Jerry & Isalene Runion
is willing to sell house & land to Dan & Pamela Messer for $27,000
if they can get a loan. This receipt is good until November 4, 1997. On November
5, 1997 the $800.00 will be due on $55,000.00 land contract.
This receipt is only good
for loan company.
This document was also signed by all four parties.
I Jerry & Isalene Runion
are selling property on this 14th day of November 1997, to Dan & Pamela
Messer but I Dan & Pamela Messer are giving Jerry & Isalene Runion
rights to dig up fruit trees & shrubbery & flowers & strawberries
& right to use barn for storage. No certain date to dig up trees or move
things from barn.
This agreement was also signed by all four parties and was notarized.