Nicholson v. Coeur D'Alene Placer Mining Corp.
161 Idaho 877
| Idaho | 2017Background
- William Michael and Joan Nicholson purchased buildings in 1995 that sat on land owned by Coeur d’Alene Placer Mining Corp. (CDA Placer) and then leased the underlying parcel; leases were annually renewed through 2014.
- CDA Placer informed the Nicholsons in 2013 that the larger property (≈3,000 acres) was under contract and said there was a brief period to "arrange for a sale of your homesite to you."
- CDA Placer sold the property to IFG Timber, LLC in March 2014; CDA Placer and its agents had allegedly made oral promises that the Nicholsons would have a right of first refusal to buy the land and that CDA Placer would purchase the buildings if the lease ended or the land was sold.
- The Nicholsons made maintenance/improvement work (well pump, clearing rubbish, garden, general upkeep) and offered to buy a portion of the site in March 2014; IFG refused to sell or lease the parcel.
- The Nicholsons sued CDA Placer and IFG for breach of the oral promises (right of first refusal; buy buildings), promissory/equitable estoppel, specific performance, and unjust enrichment; IFG counterclaimed for possession/ejectment and damages.
- The district court granted summary judgment for defendants on the Nicholsons’ claims and granted IFG summary judgment on its counterclaim (possession, writ of ejectment, damages of $6.16/day); the Nicholsons appealed.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Enforceability of alleged oral right of first refusal | Nicholsons: CDA Placer orally promised a right of first refusal; equitable estoppel / promissory estoppel should bar statute of frauds and enforce promise | Defendants: Agreement barred by statute of frauds/statute of limitations; oral term is too indefinite; no consideration | Right of first refusal unenforceable — description of property was too vague to identify the land, so oral right cannot be specifically enforced; affirmed. |
| Promise to purchase the buildings (and promissory/equitable estoppel) | Nicholsons: Promises induced them to maintain/improve and renew lease; they relied to their detriment so estoppel or specific performance applies | Defendants: No detrimental change in position tied to promise; actions were routine lease-related maintenance; no consideration | Claim dismissed — reliance was not economically substantial or prejudicial; work was ordinary maintenance related to tenancy, so promissory/equitable estoppel not established. |
| Unjust enrichment re: buildings/lease provisions | Nicholsons: If forced to vacate, they cannot remove buildings without destroying them and would be unjustly deprived of value | Defendants: Lease granted landlord rights over improvements and procedures for removal/sale; lease terms govern | No unjust enrichment recovery on these facts; lease provisions control. Lease grants landlord remedies (remove/store, retain, sell, or destroy) subject to UCC Article 9 statutory protections. |
| IFG counterclaim characterized as unlawful detainer; sufficiency of pleadings and damages | Nicholsons: Counterclaim was for ejectment (common law) and improperly sought damages; description of property insufficient | IFG: Counterclaim alleges continued possession after lease expiration and sought statutory damages and ejectment; damages appropriate | District court properly treated counterclaim as unlawful detainer and granted judgment for possession and damages; any pleading/description defects were not prejudicial. IFG awarded appellate attorney fees under I.C. § 6-324. |
Key Cases Cited
- Infanger v. City of Salmon, 137 Idaho 45 (standard for reviewing summary judgment)
- Chapin v. Linden, 144 Idaho 393 (oral land sale must be definite to enforce via part performance)
- Lettunich v. Key Bank Nat. Ass’n, 141 Idaho 362 (equitable estoppel presumes a complete agreement)
- Smith v. Boise Kenworth Sales, Inc., 102 Idaho 63 (promissory estoppel is substitute for consideration)
- Mohr v. Shultz, 86 Idaho 531 (elements of promissory estoppel)
- White v. Rehn, 103 Idaho 1 (ambiguous land description defeats specific performance)
- Lexington Heights Dev., LLC v. Crandlemire, 140 Idaho 276 (insufficient excluded-property description invalidates transfer terms)
- Bauchman-Kingston P’ship v. Haroldsen, 149 Idaho 87 (property description must allow pinpointing acreage)
- Ogden v. Griffith, 149 Idaho 489 (elements of equitable estoppel)
- Stapleton v. Jack Cushman Drilling & Pump Co., Inc., 153 Idaho 735 (affirming correct result even if trial court employed erroneous theory)
- Saint Alphonsus Diversified Care, Inc. v. MRI Assocs., LLP, 157 Idaho 106 (appellant must show prejudicial error)
- Weinstein v. Prudential Prop. & Cas. Ins. Co., 149 Idaho 299 (non-prejudicial errors disregarded)
