¶1 Patrick H. Kofmehl contracted to buy a piece of land from Baseline Lake LLC. By the time of closing, the parties disputed the amount of land covered by the sale agreement. Kofmehl was willing to close the transaction only if the disputed portion was included in the sale. Baseline was willing to close the transaction only if the disputed portion was excluded, and so the sale failed to close. The trial court invalidated the contract for failure to comply with the statute of frauds and denied specific performance to either party.
¶2 The issue before us is whether Kofmehl is entitled to recover the down payment he paid before the dispute arose. Under this court’s prior cases, a buyer in a land sale contract that is unenforceable under the statute of frauds may not recover restitution if the vendor is ready, willing, and able to perform under the terms of the contract. Schweiter v. Halsey, 57 Wn.2d 707, 711,
FACTS AND PROCEDURAL HISTORY
I. The Transaction •
¶3 Baseline acquired title to a property described as “Farm Unit 182, Irrigation Block 73, Columbia Basin Project, Grant County, Washington, according to the plat thereof
¶4 Baseline subsequently listed for sale two parcels within FU 182, Block 73 totaling 30.12 acres. CP at 99. The listed property consisted of a parcel of 17.40 acres, priced at $935,000, and a parcel of 12.72 acres, priced at $750,000, and purchasers could buy either parcel separately or both parcels for $1,650,000. Id. Baseline intended to retain the northwest 3.93 acres of the property to build a private school. CP at 69. Baseline’s survey map, CP at 74, indicates the 17.40-acre parcel, the 12.72-acre parcel, and the 3.93-acre parcel labeled “EXCLUDED.”
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¶6 On March 9, 2007, Kofmehl offered to purchase “[a]pproximatly [sic] 30.12 acres of vacant land situated between 10th Avenue and 13th and legally described as follows: all inside and a part of FU 182, Block 73, Columbia Basin Project, Grant County Tax Parcel number 20-0838--000.” CP at 84. Kofmehl offered a purchase price of $1,500,000, including $5,000 earnest money, and the offer was contingent on the following conditions:
1. Review & approval of the property and it’s [sic] lot lines by the purchaser within two weeks of acceptance of this offer by the seller.
2. Final annexation into the City of Quincy by the City of Quincy.
3. Seller agrees to pay to purchaser “late comer fees” of $29,475.00 to the purchase if seller chooses to develop the 3.93 acres he has excluded from the overall parcel number shown above.
5. [sic] If seller decides not to develop the 3.93 acres he will give this purchaser a 45-day (after seller decides not to develop the 3.93 acres) right of first refusal on that land at a price equal to what the purchaser is paying per square foot for the 30.12 acres included in this offer.
Id. This offer was not accepted. A month later, Kofmehl and Baseline entered into a real estate purchase and sale agreement (hereinafter Agreement) for the purchase of approximately 30.12 acres of vacant land inside of FU 182, Block 73. The legal description of the property was incomplete because it did not include a metes and bounds description, nor had the property been short platted. The
¶7 Kofmehl agreed to pay a purchase price of $1,650,000, including $50,000 earnest money. The Agreement was contingent on, among other things, preliminary plat approval from the city of Quincy and “Accessibility of city sewer.” CP at 75. The final signature was obtained on April 17, 2007. The closing date was set for April 15, 2008, which was eventually extended to July 1, 2008.
¶8 On May 8, 2007, Baseline’s listing agent faxed Kofmehl’s broker a preliminary plat clearly delineating “Lot 1” as 30.13 acres, comprising the same area that the survey map (pictured supra at 588; CP at 74) had marked for sale. CP at 90-91. “Lot 2” comprised the northwest 3.93 acres that had been marked “EXCLUDED.” Id. “Lot 3” comprised the remaining 9.04 acres of FU 182, Block 73. Id. Kofmehl raised no objection, and on June 30, 2008, the plat was finalized with the Grant County auditor as depicted here:
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CP at 98.
¶9 On July 1, 2008, Baseline submitted closing documents for the purchase of “Lot 1, Baseline Short Plat, according to the Short Plat thereof recorded in Volume 21 of
¶10 Kofmehl refused to sign the closing documents. Rather, he complained that the land conveyed did not include the 3.93 acres marked “EXCLUDED” on the survey map (pictured supra at 588, CP at 74) and ultimately platted as Lot 2 (pictured supra at 590, CP at 98). Kofmehl also asserted that Baseline had failed to ensure “accessibility of sewer” — a provision that he apparently understood to mean that Baseline would construct a sewer line to the property. CP at 620 (“Furthermore, I testified that pure accessibility would be ‘if the sewer lines were laid across both of those properties and stubbed into this property....’” (quoting Ex. A, Parts II.3-6, at 40)).
II. Trial Court Proceedings
¶11 Kofmehl sued Baseline in Grant County Superior Court, asking alternatively for specific performance of the Agreement, damages for breach, and rescission of the Agreement. Baseline counterclaimed for specific performance or damages.
¶12 The parties brought cross motions for summary judgment. On May 1, 2009, the trial court dismissed Baseline’s counterclaim for specific performance because the Agreement failed to satisfy the statute of frauds. CP at 304. In a second summary judgment, the trial court dismissed Baseline’s amended counterclaim for promissory estoppel or part performance. CP at 742-46, 865-69. The court reserved for later decision Kofmehl’s claims for rescission and restitution.
¶13 In a third summary judgment motion, Baseline argued that under Washington law, a buyer cannot obtain
III. Court of Appeals Proceedings
¶14 Baseline appealed all decisions of the trial court to Division Three of the Court of Appeals. The Court of Appeals took review and subsequently issued a partially published opinion, Kofmehl v. Baseline Lake, LLC,
¶15 The Court of Appeals affirmed the trial court’s holding that the Agreement fell afoul of the statute of frauds, as the parties had not contested that issue. Id. at 690. Turning to the award of restitution, the Court of Appeals drew on the well-established Washington principle that
“a vendee under an agreement for the sale and purchase of property which does not satisfy the statute of frauds, cannot recover payments made upon the purchase price if the vendor has not repudiated the contract but is ready, willing, and able to perform in accordance therewith, even though the contract is not enforceable against the vendee either at law or in equity”
Schweiter,
¶16 Pointing to this court’s decision in Johnson v. Puget Mill Co.,
¶17 The Court of Appeals then determined that Kofmehl had not carried his burden. Pointing to the plain language of Kofmehl’s offer and the Agreement, the testimony of the parties’ brokers, and other evidence in the record, the Court of Appeals held that Kofmehl had not established as a matter of law that the Agreement envisioned the sale of the 3.93 acres or that Baseline would actually construct a sewer line to the property. Id. at 696-97. Therefore, the Court of Appeals held that summary judgment in Kofmehl’s favor was improper.
¶18 Finally, in the unpublished portion of its opinion, the Court of Appeals held that Baseline was not entitled to summary judgment either. Rejecting Baseline’s claim that the term “accessibility of sewer” had a plain and ordinary meaning, the Court of Appeals held that it could not determine as a matter of law that Baseline had been ready, willing, and able to perform on the Agreement. State v. Kofmehl, No. 29683-1-III, slip op. (unpublished portion) at 25-26,
¶19 Kofmehl timely filed a petition for review by this Court. We granted review. Kofmehl v. Baseline Lake, LLC,
I. Standard of Review
¶20 This court reviews a grant or denial of summary judgment de novo, and the appellate court performs the same inquiry as the trial court. Aba Sheikh v. Choe,
¶21 A question of contract interpretation may be determined as a matter of law if it does not turn on the “credibility of extrinsic evidence or ... a choice among reasonable inferences to be drawn from extrinsic evidence.” Berg v. Hudesman,
¶22 Summary judgment is proper only if there is no genuine issue of material fact. CR 56(c). A party moving for summary judgment bears the initial burden of showing the absence of an issue of material fact. Young v. Key Pharm., Inc.,
II. Kofmehl Cannot Recover If Baseline Was Ready, Willing, and Able To Perform on the Agreement
¶23 Established Washington case law does not provide restitution to a buyer under a sale contract within the statute of frauds unless the seller has repudiated the
The applicable rule is that a vendee under an agreement for the sale and purchase of property which does not satisfy the statute of frauds, cannot recover payments made upon the purchase price if the vendor has not repudiated the contract but is ready, willing, and able to perform in accordance therewith, even though the contract is not enforcible against the vendee either at law or in equity.
¶24 Kofmehl raises two arguments against application of the Schweiter rule here. First, Kofmehl argues that the Agreement was void under the statute of frauds and proving that Baseline repudiated the Agreement would improperly reform the contract and defeat the purpose of the statute of frauds. This theory disregards the common law principle that a contract made unenforceable by the statute of frauds is still admissible in evidence for any purpose other than enforcement. Restatement (Second) of Contracts § 143; see Costco Wholesale Corp. v. World Wide Licensing Corp.,
¶25 Second, Kofmehl points to the trial court’s statements implying there was never any agreement in the first instance. Whether or not the parties reached an enforceable agreement initially, as in Schweiter, the parties received an extrinsic description of the land prior to closing. This description may not be enough to make the Agreement enforceable, but it suffices to determine whether or not Baseline was ready, willing, and able to perform. As in Schweiter, then, our role is to consider whether Baseline repudiated the Agreement.
¶26 We hold that the Court of Appeals correctly held that the Schweiter rule applies here: restitution will not be available if Baseline did not repudiate the Agreement but remained ready, willing, and able to perform.
III. Kofmehl Bore the Burden of Proving That Baseline Was Not Ready Willing, and Able To Perform
¶27 Kofmehl argues that even if Schweiter applies, it is not his burden to prove that Baseline repudiated or that Baseline was not ready willing, or able to perform. In the past, this court has required a purchaser to prove the vendor’s breach when attempting to recover earnest money on a land sale contract. Soules v. Cox,
¶29 Placing the burden of proof on Kofmehl would also be consistent with practice in other jurisdictions. California, for example, demands “pleading or proof that the [sellers] have on their part violated any of the terms of said agreement,” Walbridge v. Richards,
IV. There Is a Genuine Issue of Material Fact as to Whether Kofmehl Is Entitled to Restitution
¶30 Kofmehl must show that Baseline was not ready, willing, and able to perform on the Agreement. He does not contest that Baseline was ready, willing, and able to perform on the Agreement as Baseline saw it. But to prevail on summary judgment, Kofmehl must prove that his interpretation of the Agreement is correct. He has failed to do so. Rather, construing the facts in the light most favorable to Baseline — as we must do on appeal of a summary judgment against Baseline — leads to the conclusion that Kofmehl, not Baseline, breached the Agreement.
A finder of fact could find that Baseline tendered the property contemplated by the Agreement
1. The Agreement provided for the sale of 30.12 acres, which is what Baseline tendered
¶31 Kofmehl’s main complaint with the closing documents was that the legal description was based on the short plat filed after the parties entered into the purchase and sale agreement, in contrast to the legal description contained in the Agreement. Kofmehl relies on Park v. McCoy,
¶32 Kofmehl interprets Park to mean that whenever the legal description in a seller’s tender differs from an earlier promised legal description, the buyer is automatically entitled to rescission and restitution. But in Park, we relied on the fact that the land actually tendered by the contract was a lesser amount than the buyer had been promised in the earnest-money receipt. Id. The record does not clearly establish that this is the case here. Drawing all inferences in Baseline’s favor, Kofmehl’s theory that the Agreement promised him the additional 3.93 acres founders upon the plain language of the Agreement. Both the offer and the Agreement provided for “30.12 acres” to be conveyed. This is the size of the “Lot 1” that Baseline offered to convey and that Kofmehl saw on Baseline’s preliminary map prior to signing the Agreement. Nothing on the face of the Agreement suggests any intention to buy or sell 34 acres.
¶33 Kofmehl also argued to the trial court that he took the language “all included inside FU 182, Block 73” to mean that he was purchasing the entirety of Block 73. Baseline, on the other hand, understood the language to mean that all 30.12 acres were contained inside FU 182, Block 73. Baseline’s reading of the Agreement is consistent with the original listing, which listed FU 182, Block 73 in the section “Farm Property Informative Data” under “How to get there.” In other words, Baseline meant “[approximately 30.12 acres” as the actual description of the land and “[a]ll included inside of FU 182, Block 73” as an explanatory phrase. This may reflect sloppy draftsmanship, but it does not require a finder of fact to find that Baseline meant to sell the entirety of Block 73. Rather, if the Agreement had been intended to sell all of Block 73, it would not have described the property to be sold as 30.12 acres. Block 73 is 43 acres in area, not 30.12.
¶34 In the summary judgment proceedings, Kofmehl also relied on his addition of $150,000 to the purchase price in his
¶35 Reading the facts in the light most favorable to Baseline, the Agreement — whatever its other flaws— clearly indicated that Kofmehl was to purchase 30.12 acres, and Kofmehl could not complain when the closing documents tendered the only combination of parcels that exactly totaled 30.12 acres.
2. The record does not clearly establish that Baseline failed to ensure the “accessibility of sewer”
¶36 Kofmehl complains that at the time of closing, Baseline had not complied with the term “accessibility of sewer” in the Agreement. The word “accessibility” does not have a plain and ordinary meaning. However, the dictionary defines it as “the quality or state of being [capable of being reached or easily approached].” Webster’s Third New International Dictionary 11 (2002).
¶37 According to the city of Quincy, there were “easements in place to provide for sewer to the subject property.” CP at 335. The sewer was legally capable of being reached through these easements. Kofmehl did not outright deny the existence of these easements but only complained that they were “not new, fresh and recorded and exact.” CP at 155.
¶38 Reading the facts in the light most favorable to Baseline, we must credit the city’s assertion that the easements existed and allowed for access to the sewer — notwithstanding Kofmehl’s misgivings. In addition, Kofmehl discussed with his broker his plans for constructing the sewer line himself. This belies his assertion that he meant the
¶39 Reading the facts in the light most favorable to Baseline, Kofmehl had no cause to refuse to sign the closing documents and his refusal constituted a breach of the Agreement. There are genuine issues of material fact as to Kofmehl’s right to restitution, and the Court of Appeals correctly reversed the trial court’s grant of summary judgment in his favor.
¶40 In order to prevail on remand, Kofmehl must satisfy the Schweiter test by proving both the validity of his interpretation of the Agreement and that Baseline repudiated that Agreement, or else revive and prevail on his alternative arguments that there was no meeting of the minds or that there was a mutual mistake of fact.
V. Baseline Is Not Entitled to Summary Judgment Granting Specific Performance of the Agreement
¶41 We now turn to Baseline’s request for summary judgment. The Court of Appeals affirmed the trial court’s denial of summary judgment for Baseline, holding that “Baseline’s evidence, while substantial, does not clearly establish the absence of any genuine issue of material fact.” Kofmehl, slip op. (unpublished portion) at 26,
¶42 As we discussed above, the evidence points strongly to Baseline’s reading of the Agreement to cover only 30.12 acres of land — but the evidence is not so strong as to foreclose all other interpretations. For instance, the $150,000 increase in the purchase price between Kofmehl’s initial offer and the final Agreement might be explained by the addition of more land to the Agreement — although as discussed previously, four acres at $150,000 is significantly
¶43 As for the sewer, Baseline argues that the term of the Agreement concerning “[accessibility of city sewer,” CP at 75, has a plain and ordinary meaning that can be construed as a matter of law. In support of this assertion, Baseline points to our holding in Goedecke v. Viking Inv. Corp.,
VI. Attorney Fees
¶44 The Agreement provides that “[i]f Purchaser, Seller, or any Agent or Broker included in this transaction is involved in any dispute relating to any aspect of this transaction or this Agreement, any prevailing party shall recover their reasonable attorneys’ fees and costs.” CP at 77. Because there are still genuine issues of material fact, neither party has prevailed yet and we decline to award
CONCLUSION
¶45 The record leaves genuine issues of material fact as to the meaning of the Agreement and to which party breached the Agreement. Thus, neither party is entitled to summary judgment on this record. We affirm the Court of Appeals and remand this case for further proceedings consistent with this opinion.
Notes
The survey map was circulated among the parties prior to the signing of the final purchase and sale agreement (Agreement). Kofmehl’s broker highlighted the map for Kofmehl to indicate what property was subject to the Agreement.
See also Restatement (Third) of Restitution and Unjust Enrichment § 31 cmt. f (2011) (an agreement that is unenforceable under the statute of frauds may nevertheless be evidence establishing unjust enrichment for the purposes of calculating the proper amount of restitution).
This is not a two-part test; one who repudiates a contract is necessarily not “ready, willing, and able to perform.” See Black’s Law Dictionary 1418 (9th ed. 2009) (defining “repudiate” as “[t]o reject or renounce (a duty or obligation); esp., to indicate an intention not to perform (a contract)”).
