J. David Johnson brought this action against John Lambros for breach of an agreement for the sale of real property. Johnson, the purchaser, alleged that Lam-bros breached the contract by failing to obtain clear title prior to the closing date. Following a bench trial, the district court found no breach, and the court adhered to this decision after hearing a motion for reconsideration. Johnson appeals the order denying his motion for reconsideration.
I.
BACKGROUND
In June 2001, the parties entered into a written agreement (the “Agreement”) under which Lambros agreed to sell a parcel of real property to Johnson, who was looking for investment property with which to complete a deferred tax exchange under Internal Revenue Code § 1031 (a “1031 Exchange”). In order for Johnson to gain this tax benefit, it was necessary that closing occur before October 28, 2001. The pertinent provisions of the Agreement provided:
8. TITLE CONVEYANCE: Title of
SELLER is to be conveyed by warranty deed, unless otherwise provided, and is to be marketable and insurable ... No liens, encumbrances or defects, which are to be discharged or assumed by BUYER or to which title is taken subject to, exist unless otherwise specified in this agreement.
9. TITLE INSURANCE
(A) TITLE COMMITMENT: Prior to closing the transaction SELLER ... shall furnish to BUYER a commitment of a title insurance policy showing title to said premises. BUYER shall have 5 business days from receipt of the commitment or not less than twenty-four (24) hours prior to closing, within which to object in writing to the condition of the title as set forth in the commitment. If BUYER does not so object, BUYER shall be deemed to have accepted the condition of the title. It is agreed that if the title of said premises is not marketable, or cannot be made so within 3 business days after notice containing a written statement of defect is delivered to SELLER, BUYER’S Earnest Money deposit will be refunded to BUYER and SELLER shall pay for the cost of title insurance cancellation fee, escrow and legal fees, if any.
In compliance with the Agreement, Lambros obtained a title insurance commitment, which revealed for the first time a lis pendens and a lawsuit filed by a third party who was attempting to enforce an option to purchase the property. 1 Rather than terminating their transaction, Johnson and Lambros executed an addendum, which stated:
1. Buyer is ready, willing and able to proceed with closing this transaction on this 10th day of July 2001. However, seller is not able to close transaction and provide clear, unencumbered title to subject property as of this date.
2. Buyer is willing to extend the closing date of this transaction to on or before August 10th 2001 at 5 p.m.
3. The purpose of this agreement is to allow seller take [sic] whatever action is necessary to provide clear title to subject property.
In an attempt to clear the title, Lambros promptly filed a motion for summary judgment in the third party’s lawsuit. A short time later, Johnson and Lambros executed a second addendum nearly identical to the first, which extended the closing date until
Johnson filed this action for breach of the Agreement, seeking specific performance of the contract, or in the alternative, damages of approximately $65,000 for additional tax liability that he contends he incurred because the 1031 Exchange did not occur. Johnson alleged that the addenda to the Agreement created an affirmative duty for Lambros to provide clear title to the property. A court trial was conducted, after which the court issued findings and conclusions determining that Lambros had not breached the Agreement. The court found that the Agreement and addenda did not include a promise by Lambros to clear title but, rather, gave Johnson the right to a refund of his earnest money, as his sole remedy, if Lambros could not deliver title satisfactory to Johnson. The court further found that Lambros had discharged any obligation he had in regard to the title by taking reasonable steps to clear the title until his efforts were frustrated by the third party’s bankruptcy. The court also concluded that even if a breach had been shown, Johnson would not have been entitled to the damages he sought because they were speculative.
Before judgment was entered on the court’s findings and conclusions, Johnson filed a motion for reconsideration, renewing his argument that the addenda created a duty for Lambros to provide clear title to the property. Johnson did not present any additional evidence with this motion. After a hearing, the court denied the motion for reconsideration, a decision that Johnson now appeals.
II.
ANALYSIS
A. Johnson Was not Required to Present New Evidence with His Motion for Reconsideration
Preliminarily, we must address Lambros’s contention that because Johnson presented no new evidence with his motion for reconsideration, the motion was properly denied and we need not address the merits of the case. This argument is based on the timing of Johnson’s motion for reconsideration. On October 20, 2004, the district court issued its finding of facts and conclusions of law in which it determined that Lambros had not breached the Agreement. On November 2, 2004, Johnson filed a motion for reconsideration. This motion did not include any additional evidence, but merely requested reconsideration based on the evidence presented at trial. Judgment was entered three days later, on November 5, 2004, followed by an amended judgment on January 26, 2005. A hearing on Johnson’s motion for reconsideration was held on February 14, 2005, at which time the motion was denied.
Lambros argues that because Johnson’s motion to reconsider was filed before judgment was entered, it was necessarily brought under Idaho Rule of Civil Procedure 11(a)(2)(B), which governs motions for reconsideration of interlocutory orders, and not under I.R.C.P. 59(e), which authorizes motions to alter or amend a judgment. This distinction is significant, Johnson asserts, because while a party is not permitted to present new evidence with motions made pursuant to I.R.C.P. 59(e),
3
a motion for re
consideration
Although there is language in some appellate opinions that could be construed to support Lambros’s argument, we disagree with his characterization of the requirements for such a motion. In our view, the case law applying Rule 11(a)(2)(B) permits a party to present new evidence when a motion is brought under that rule, but does not require that the motion be accompanied by new evidence.
Several decisions of the Idaho appellate courts have held that Rule 11(a)(2)(B) motions were properly denied in the absence of additional evidence that would provide a basis upon which to reconsider the prior order. An example is
Coeur d’Alene Mining Co. v. First Nat’l Bank of North Idaho,
A similar case is
Devil Creek Ranch, Inc. v. Cedar Mesa Reservoir & Canal Co.,
Subsequent to [the first appeal], the district court was not bound by its prior findings and conclusions and was in a position to modify its prior order as to matters not passed upon by this Court or controlled by the law of the case. See Hutchins v. State,100 Idaho at 665-66 ,603 P.2d at 999-1000 . [The plaintiff] had the opportunity at that juncture to submit a “full and complete presentation of all available facts.” Coeur d’Alene Mining Co. v. First Nat’l Bank,118 Idaho 812 , 823,800 P.2d 1026 , 1037 (1990) (quoting J.I. Case Company v. McDonald,76 Idaho 223 , 229,280 P.2d 1070 , 1073 (1955)). However, [the plaintiff] submitted no supporting affidavits, depositions, or admissions that would bring to the district court’s attention new facts bearing on the correctness of the interlocutory order. A party filing a motion to reconsider pursuant to Rule 11(a)(2)(B) carries the burden of bringing to the trial court’s attention the new facts. Id.; see also Idaho First Nat’l Bank v. David Steed & Assoc.,121 Idaho 356 , 361,825 P.2d 79 , 84 (1992) (trial court should have considered affidavit and exhibit submitted by party in support of Rule 11(a)(2)(B) motion). The district court,therefore, had no basis on which to grant Devil Creek Ranch’s motion for reconsideration, and the denial of the motion is affirmed.
Devil Creek Ranch, Inc.,
In
Jordan v. Beeks,
Nationsbanc Mortg. Corp. of New York v. Cazier,
None of these authorities preclude reconsideration of a trial court’s interlocutory decision on the bases of the initial evidence. Indeed, a rule requiring new evidence on a motion for reconsideration would be a cause for concern. It would prevent a party from drawing the trial court’s attention to errors of law or fact in the initial decision, precluding correction of even flagrant errors except through an appeal.
Accordingly, we hold that the absence of new evidence accompanying Johnson’s motion for reconsideration did not, standing alone, require that the motion be denied.
B. Lambros Did not Breach the Contract
We proceed, therefore, to the question whether the district court erred in denying the motion for reconsideration on the merits. The decision to grant or deny a request for reconsideration generally rests in the sound discretion of the trial court.
Watson v. Navistar Int’l Transp. Corp.,
Johnson makes two arguments on appeal. He contends that the addenda to the Agreement gave rise to an affirmative duty that Lambros actually provide good title, or alternatively, that Lambros’s efforts to secure clear title were insufficient.
Johnson posits that the addenda created a duty that Lambros actually provide clear title, thus superseding the remedy contained in paragraph 9. In particular, Johnson contends that the language in the third section of the addenda, which states that “[t]he purpose of this agreement is to allow seller [to] take whatever action is necessary to provide clear title to subject property,” modified the Agreement from one in which Johnson had the right to reject an encumbered title to one in which Lambros made an affirmative promise to actually acquire and transfer clear title.
Johnson is correct in asserting that addenda are controlling over any inconsistent provisions in a pre-printed, fill-in-the-blank agreement.
See
Idaho Code § 29-109;
Airstream, Inc. v. CIT Financial Serv., Inc.,
Ill Idaho 307, 310 n. 2,
Alternatively, Johnson argues that the addenda imposed upon Lambros a duty to make all possible efforts to fulfill his obligation of providing clear title, up to and including paying the third party any sum necessary to induce a release of his claim. Johnson argues that Lambros therefore breached by attempting only one unsuccessful method to resolve the lawsuit with the third party.
Johnson’s argument invokes the general contract principle that if a contract contains a condition precedent to a party’s performance obligation and the occurrence of the condition is within the control of that party, the party must make a good faith effort to bring about that condition. A condition precedent is an event that is not certain to occur, but which must occur unless nonoccurrenee is excused, before performance under a contract will become due.
Wade Baker & Sons Farms v. Corp. of the Presiding Bishop of the Church of Jesus Christ of Latter-Day Saints,
Generally speaking, if there is a failure of a condition precedent through no fault of the parties, no obligation of performance arises under the contract.
Mecham v. Nelson,
If a condition precedent is under the control of one party, there is generally an implied promise that the party will “make some reasonable effort to cause the event to happen.”
Schlueter v. Nelson,
It is thus apparent that a seller of real property may have an implied obligation to make a good-faith effort to secure clear title where conveyance of clear title is a condition precedent to completion of the sale. This is illustrated by a New York decision,
Naso v. Hague,
In the present case, securing good title was at least partially within Lambros’s control, although he clearly did not have any power over the third party’s decision to seek bankruptcy protection. Lambros was under
Whether the facts establish a violation of the contract is a question of law over which we exercise free review.
Hughes v. Fisher,
Because Lambros fulfilled his obligations under the Agreement but was unable to convey marketable title, the remedy provision of paragraph 9 governs and precludes the damages sought by Johnson.
See Robison v. Compton,
C. Attorney Fees
Lambros requests an award of attorney fees pursuant to an attorney fee clause in the Agreement. As the Agreement specifies that the prevailing party will be entitled to attorney fees in any litigation arising out of the Agreement, Lambros is awarded attorney fees incurred on this appeal.
III.
CONCLUSION
Neither the Agreement nor the addenda imposed upon Lambros an affirmative duty to actually clear title to the property. Rather, Lambros was under an implied obligation to make a good faith effort to secure clear title. The trial court properly found Lam-bros satisfactorily performed this obligation. Johnson’s remedy for Lambros’s inability to convey clear title is therefore limited to that provided under paragraph 9 of the Agreement. The district court’s decision denying Johnson’s motion for reconsideration is affirmed. Costs and attorney fees to respondent.
Notes
. The third party’s lawsuit arose from an earlier contract in which Lambros had agreed to sell topsoil from the property to the third party for a project at another location. The contract also gave the third party an option to purchase the property. During the project, Lambros terminated the contract, contending that he had not been paid and that the third party's methods had caused needless damage to the land. Although Lambros was aware that the third party had attempted to exercise the option, at the time he entered the Agreement with Johnson he was under the impression that the matter had been resolved and was unaware that the third party had filed a lis pendens.
. Ultimately, Lambros obtained clear title through proceedings in the bankruptcy court.
. Because Rule 59(e) motions are brought after judgment, new evidence may not be presented with such motions. As we have said:
Rule 59(e) proceedings afford the trial court the opportunity to correct errors both of fact or law that had occurred in its proceedings; it thereby provides a mechanism for corrective action short of an appeal. First Sec. Bank v. Neibaur,98 Idaho 598 ,570 P.2d 276 (1977). Such proceedings must of necessity, therefore, be directed to the status of the case as it existed when the court rendered the decision upon which the judgment is based.
Lower. Lym,
