Callies v. O'NEALCallies v. O'NEAL
Trieia Callies and Complete Property Management, Inc. (collectively “CPM”) filed a complaint against George O’Neal, Charter Builders, Inc., Charter Pointe Apartments, LLC, and Silver Oaks, LLC (collectively “CBI”) seeking payment of real estate commissions allegedly earned pursuant to two listing agreements. The district court issued an order granting partial summary judgment in favor of CBI, holding the agreements were unenforceable because they did not contain sufficient descriptions of the properties to be sold. CPM now appeals the district court’s order. We vacate and remand.
I.
Callies, the owner оf Complete Property Management, entered into two exclusive seller representation agreements with George O’Neal, the sole shareholder of Charter Builders, Inc. The listing agreements pertained to two development projects — Charter Pointe Apartments (Charter Pointe) and Silver Oaks.
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At the time the listing agreements
The Charter Pointe agreement was executed on March 1, 2005 and was later extended on February 28, 2006. The agreement described the development as having “32 zero lot line 4 plexes,” and identified the “property address and ... complete legal description” of the project as follows:
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At the time the parties executed the agreement, it did not include an attached “addendum # 1.”
Although a final legal description was not attached to the agreement, Callies stated in her affidavit that O’Neal had provided her with a preliminary plat of the project, which was placed “into both of our listing agreement files — mine by my staff and his by his own hand.” According to Callies, the plat and a document containing the individual legal descriptions for the units were incorporated into the listing agreement prior to its renewal and extension on February 28, 2006. 2 The document containing the legal descriptions was not labeled as “addendum # 1,” but it identified each individual unit in the development by reference to a plat and by its street address.
The Silver Oaks agreement was executed on March 7, 2005. The legal description of the property was not prepared until March 14, 2005. The agreement described the development as having 73 four plex buildings and identified the legal description of the property as follows:
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When the agreement was executed, it did not include an attached “addendum # 1.”
One week after executing the Silver Oaks agreement, O’Neal provided Callies with a master plat and legal description of the property. According to Callies, the master plat “was put into both of our listing agreement files — mine by my staff and his by his own hand.” She also stated that the legal description of the Silver Oaks property and individual unit descriptions were incorporated into the listing agreement before it was renewed and extended on February 28, 2006.
Despite the initial absence of attached property descriptions, the testimony presented below indicated both parties understood what properties were the subjects of the agreements. O’Neal testified:
[O]n or about March 8, 2005 I executed the closing papers for the acquisition of the property which is the subject matter of the above noted Representation Agreements. ... [O]n April 11, 2006 the Declaration of Covenants for Charter Pointe Village 4-Plex Condominiums was recorded ... which [included] a legal description of record for the property which is the subjeсt matter of the above noted Representation Agreements.
Callies testified that “[a]t the time of the execution of the Extension Agreements] there was no doubt between the parties as to the terms of the Listing Agreements’] legal descriptions].” Neither party disputed there was a mutual understanding regarding
The listing agreements for Charter Pointe and Silver Oaks were not the first such agreements between CPM and CBI. The parties had previously entered into several similar agreements for properties Callies brokered on behalf of CBI. In those agreements, the parties employed the same method of describing the properties to be sold. Specifically, the agreements listed the property addresses as “TBD” and indicated that legal descriptions of the properties were attached as “addendum # 1” — even when such descriptions were not available.
The parties continued operating under the Charter Pointe and Silver Oaks listing agreements for approximately eighteen months. During that time, Callies marketed the units in the developments, opened escrow accounts, brokered several purchase and sale agreements, and received earnest money deposits оn behalf of CBI. Callies turned the earnest money checks over to O’Neal, who deposited the checks throughout the years of 2005 and 2006. Then, in May 2006, CBI began contesting the validity of the listing agreements. CBI maintained the listing agreements were invalid because they did not contain sufficient property descriptions and, therefore, it refused to pay CPM.
On November 8, 2006, CPM filed a complaint against CBI seeking to recover unpaid commissions for sales relating to the Charter Pointe and Silver Oaks developments. CPM claimed “between $235,900.00 and $421,800.00” in commissions for the Charter Pointe project and $546,600.00 for the Silver Oaks project. CBI filеd an answer and counterclaim seeking a judgment declaring the listing agreements invalid, followed by a motion for partial summary judgment. Relying on Idaho Code sections 9-503, 9-508, and 54-2050, CBI argued that the listing agreements were invalid because they did not include legal descriptions of the properties to be sold and, thus, violated the statute of frauds. Accordingly, it sought dismissal of the claims for commissions due under the agreements.
On August 31, 2007, the district court granted CBI’s motion for partial summary judgment. The court concluded the listing agreements were unenforceable because they did not comply with Idaho Code sections 9-503 and 54-2050. Relying on this Court’s dеcision in
Lexington Heights Development, L.L.C. v. Crandlemire,
CPM now appeals the district court’s order granting CBI’s motion for partial summary judgment. CPM argues that the district court’s order should be vacated and the case remanded for a trial on its breach of contract, part performance, and quasi-estoppel claims. It contends the court’s order was erroneous because: (1) the court improperly
II.
On appeal we are presented with five issues: (1) whether the district court erred in relying on Idaho Code section 9-503 rather than section 9-508; (2) whether a genuine issue of material fact exists regarding the parties’ intent to incorporate property descriptions into the listing agreements; (3) whether the agreements contained legally enforceable descriptions of the properties to be sold; (4) whether CPM is entitled to compensation based on the equitable principles of part performance and quasi-estoppel; and (5) whether either party is entitled to attorney fees on appeal.
A.
' [1-3] On appeal from an order granting a party’s motion for summary judgment, this Court employs the same standard of review that the trial court uses in ruling on the motion.
Baxter v. Craney,
In construing the record on a motion for summary judgment, all reasonable inferences and conclusions must be drawn in favor of the party opposing summary judgment.
Student Loan Fund of Idaho, Inc. v. Duerner,
When questions of law are presented on a motion for summary judgment, “this Court exercises free review and is not bound by findings of the district court but is free to draw its own conclusions from the evidence presented.”
Lettunich v. Key Bank Nat’l Ass’n,
B.
CPM contends the district court improperly relied on Idaho Code section 9-503 instead of section 9-508. It argues relying on section 9-503 was improper since that section estаblishes a statute of frauds for transfers of interests in real property. According to CPM, section 9-508 governs the disposition
CBI contends the district court applied the appropriate standard for determining the sufficiency of the property descriptions. It argues that, pursuant to Idaho Code section 54-2050, commissiоn agreements must contain property descriptions that satisfy section 9-503. According to CBI, by enacting Idaho Code section 54-2050, the Legislature overruled this Court’s more lenient interpretation of the description requirement for commission agreements contained in section 9-508. Alternatively, CBI argues that even if section 9-508 controls, the trial court’s reliance on section 9-503 was harmless error.
1.
The interpretation and application of a statute are pure questions of law over which this Court exercises free review.
Roeder Holdings, L.L.C. v. Bd. of Equalization of Ada County,
In enacting legislation, the Legislature is deemed to have full knowledge of existing judicial decisions.
C. Forsman Real Estate Co. v. Hatch,
2.
Under Idaho’s statute of frauds pertaining to transfers of real property,
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agreements for the sale of such property must be in writing and subscribed by the party to be charged.
Another рrovision of the statute of frauds requires that brokerage representation agreements pertaining to the sale of real property be in writing.
No contract for the payment of any sum of money or thing of value, as and for a commission or reward for the finding or procuring by one person of a purchaser of real estate of another shall be valid unless the same shall be in writing, signed by the owner of such real estate, or his legal, appointed and duly qualified representative.
In this Court’s earlier decisions, we held that to satisfy the writing requirement contained in
This Court adhered to the interpretation of
The applicable rule as variously stated ... is that the listing agreement must, inter alia, identify the real property adequately as between the broker and the vendor. If it is thus sufficient to identify the property, although defective, ambiguous, or uncertain, it may be supplemented by parol or extrinsic evidence. Such evidence may be presented, not to create a description, but to cure a defective one otherwise sufficient. When that is done it will be held in compliance with the statute,I.C. § 9-508 .
Id.
In reaching our decision in Central Idaho Agency, we reasoned it would be illogical to apply the rule governing actions for specific performance of contracts for the sale of real propеrty to actions to enforce brokerage contracts. Id. Unlike a real estate sale agreement, a brokerage agreement is “not a contract to sell, convey, or encumber real property or any interest therein” and, therefore, does “not support an action to compel conveyance of the property involved.” Id. Instead, a brokerage agreement is akin to an employment contract “for services to be performed by the broker for a commission to be paid upon the occurrence of certain specified events.” Id. Based on these distinctions, a more lenient property description standard for brokerage agreements was justified.
Over thirty years after our decision in
Central Idaho Agency,
the Legislature enacted Idaho Code section 54-2050. As mentioned above, the statute explicitly requires real estate brokerage agreements to contain “[a] legally enforceable description of the property” to be sold.
From 1968 until the enactment of
Although, on one occasion, we deviated from our holding in
Central Idaho Agency,
that decision was rendered after the enactment of
Garner
did not change the standard governing the sufficiency of property descriptions contained in real estate brokerage agreements. Nowhere in the decisiоn did we purport to overrule the over thirty years of precedent based on
Central Idaho Agency.
Although we relied on the standard set forth in Idaho Code section 9-503 in reaching our decision, the applicability of
Moreover,
For the foregoing reasons, the trial court erred in relying on section 9-503 to determine whether the commission agreements contained adequate property descriptions.
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Given the more stringent description requirement imposed by section 9-503, the trial court’s reliance on that section instead of
III.
The district court’s order granting CBI’s motion for partial summary judgment is vacated and the case remanded. Fees and costs, including those incurred on appeal, may be awarded to the party who prevails on remand.
Notes
. Charter Builders, Inc. was the managing member and agent for the limited liability companies formed for both Charter Pointe and Silver Oaks,
. Callies does not specify how the incorporation of the legal descriptions was accomplished, either with respect to Charter Pointe or Silver Oaks. It is not clear whether the incorporatiоn occurred through other means than placing the legal descriptions in the listing agreement files. CBI moved to strike Callies' affidavits but the record does not reflect the grounds upon which it relied. The district court did not rule on the motion to strike, concluding that "there is no need to resolve the evidentiary issues raised by [CBI]” because the motion for summary judgment presented "only questions of law.” As it turns out, we conclude that the district court erred in determining the issues of law. Thus, the factual issues become relevant and, without a determination of those issues by the trial court, we are not inclined to decide them.
. The court rеjected CPM's argument that the subsequently attached descriptions were part of the agreements.
. That statute provides:
No estate or interest in real property, other than for leases for a term not exceeding one (1) year, nor any trust or power over or concerning it, or in any manner relating thereto, can be created, granted, assigned, surrendered, or declared, otherwise than by operation of law, or a conveyance or other instrument in writing, subscribed by the party creating, granting, assigning, surrendering or declaring the same, or by his lawful agent thereunto authorized by writing.
. A written agreement that refers to " 'any record or external or extrinsic description from which a complete description could be had' sufficiently describes the real property for purposes of the statute of frauds.”
Ray v. Frasure,
. Recovery may, however, be permitted under exceptional circumstances.
See Century 21 Quality Props., Inc. v. Chandler,
. Still, CBI argues that
. The district court also erred in concluding that the legal descriptions were required to be physically attached to the listing agreements at the time they were signed. This Court has not imposed such a rigid requiremеnt in the past and finds no need to do so here.
See Garfield v. Tindall,