*1 RICHARDSON, individuаl, Jack D. an Battlefield, Inc., Wyoming
corporation, Appellants (Defendants), SCHAUB, individual,
Donald V. Inc.,
H & S (Plaintiffs).
corporation, Appellees
No. 89-149.
Supreme Wyoming. Court of
Aug. *2 Honaker, Hamp- Honaker &
Richard H. ton, appellants. Springs, Rock Durham, M. Van A. Snow and Paul John Cott, McCarthy, Salt Bagley, & Cornwall Jr., Thomas, Utah, F:L. City, Lake Kemmerer, appellees. URBIGKIT, C.J., Before related below which to the Bennett-Card- *
THOMAS, CARDINE, MACY er land trade? GOLDEN, JJ. Appellees’ “3. Are claims barred Statute of Frauds? *3 THOMAS, Justice. regard “4. Appellants’ With counter- eye, controversy At its this revolves loan, repayment Appel- claim for of a did 15(b), application the around of Rule W.R. the limi- lees waive defense of statute of At the C.P. the close of the trial tations?” granted joint to amend court motion the the in his Schaub addresses same issues pleadings to evidence. It conform to the brief, he in but restates them for effect judgment entered in of then favor Donald way: this (Schaub) H Inc. Marketing, Schaub and & S the “1. Did trial court discre- abuse its against and and Jack D. Richardson Battle- denying tion in trial motion for a new field, (Richardson) Inc. for a commission surprise unfair upon regarding based the by arranging of land earned a trade Bennett-Carder land trade? in engineering accomplished work Richard- there sufficient sus- Is evidence to specific subdivision. claim “2. son’s Since that portion tain of judgment the enterеd pleaded commission fees had not been below which related to the Bennett-Card- by that a contends sub- er trade? sequent upon motion for a based new trial Appellees’ “3. Are surprise should claims barred granted. have been Collat- respect issues are' Statute Frauds? eral asserted with whether the record evi- contains sufficient Appellants’ “4. re- Is counterclaim for judgment to sustain the for the com- dence payment of a loan barred the statute fees; mission whether the claim is barred limitations, equitable doc- frauds; by the statute of and whether trines of set-off or laches?” permitted Richardson should have been 25, 1975, January On Richardson entered repayment on a recover counterclaim for agreement into an with Schaub and Harold because loan Schaub had waived de- pursuant Hesner to which Hes- Schaub and of statute of In its rul- fense limitations. ner, commission, for a were to market 30% question ings, trial court resolved the in a and sell lots subdivision owned sufficiency of evidence in favor of Richardson. land was located north Schaub and concluded that his claim was Kemmerer, in County, Lincoln and barred frauds. The not statute of the Commissary identified as Ranch Subdi- did, however, permit trial court Schaub to time, vision. that At Richardson loaned the defense assert of statute of limitations $10,600 up Hesner and Schaub for start repayment to Richardson's claim for of a costs, undisputed it is loan and that the light Our loan. review of the record Battlefield, repaid. was not Inc. H & S and pertinent persuades law there is us Marketing, parties Inc. were not complained rulings error the several no agreement because did Hesner and Schaub of, judgment we affirm the of the trial 21, 1975, incorporate February not until court. Richardson, shareholder, as the sole Richardson sets forth the issues incorporate did until 1975. not November way: assigned In Hesner his interest in judgment “1. Where entered on a venture to Schaub and left H & Market- S pleaded, which was never did the claim ing, marketing Inc. addition to denying court trial abuse its discretion land, selling the Schaub and H & S Market- upon a motion for a new based trial ing, engi- Inc. were involved in subdividing, surprise? unfair Commissary neering, surveying Is there persuasive
“2. sufficient evidence to sus- Ranch The record lands. portion tain of the entered it is of this the law case that Schaub argument. * ChiefJustice at time of oral
Richardson, continuing periоd In the their business re- from 1975 to Richard- son and their Schaub conducted business corporations, Bat- lationships, treated relationship pursuant to a number of modi- Inc., tlefield, H S as Inc. and & original agreement. fications of the egos main- respective their alter without May they executed separation of the individu- taining true parcels convey title to some corporate identities. We see no al and permit Schaub and Hesner in order to them corpora- to treat the reason for the court property to sell the owners. ar- differently. tions rangement fall of continued until the When embarked this busi- forward, From 1976 Richardson and venture, ness he was licensed to sell essentially their defined relation- *4 Wyoming. upon ship by real in He agreement. estate relied oral Pursuant to that agreement, and H & S attorneys the several and real advice of Inc. were to commission receive on 30% concluding that, estate in at that brokers sales, property they obligat- but also were time, any he did not need to obtain license pay pro to of ed rata share licensing under statutes re- the costs. lating agents. and 33- to brokers See §§ 1984, Beginning August in of -206, Richardson Richardson was 28-101 to W.S.1977. unilaterally agreement so adjusted the the fact concerned about that Schaub only paid he of commissions to Schaub 10%. 1979, had In no license. Schaub became Schaub endeavored to contact Richardson and, 1982, salesman in licensed real estate explanation adjustment, of the but he obtained a real estate broker’s license. July In responded. Richardson never This latter license became inactive at the 1987, action, after Schaub commenced end of 1983. stopped paying Richardson commissions al- marketing Commissary In the Ranch together.1 Subdivision, exchanged prop- was complaint, alleged In his breach erty being in to its or services addition sold contract, contract, anticipatory breach exchange for cash or credit. one the relief, quasi-contract. he sought For Associates, transactions, Bennett-Carder & monetary accounting, a damages, an de- (Bennett-Carder) Inc. received in ten lots attorney claratory judgment, and fees. Commissary the Ranch in ex- Subdivision presented alleg- Richardson a counterclaim change engineering work a different property ing that had сonverted tract, Canyon the Ranch Subdivi- the paid his own use had never devel- sion, being opment agreed. services at with those valued fees as he had $122,450. also Richardson owned The trial held to the court from Spring Canyon Ranch subdivision which is through 1988. At October October Commissary north Ranch subdivi- evidence, the conclusion Schaub and sold sion. Richardson the entire plead- moved to amend both property, Spring Canyon Ranch and Schaub ings to to the conform opportunity granted had to earn commissions motions in no trial court these accord- 15(b), lands. ance with W.R.C.P.2 court from the sale of these Rule necessary Battlefield, Neely, to conform to the to cause them 1. In Inc. may 1983), (Wyo. issues had occasion evidence to raise these be this court to consider Battlefield, time, any any party against suit Richardson and made motion of another non-payment judgment; of commissions for sales even after but failure so amend Inc. for trial of f lands. does not the result of the these subdivision affect objected at the issues. If trial evidence W.R.C.P., 15(b), states: ground Rule within the on the that it is not issues may pleadings, the court allow made to the evidence.— "Amendments conform plеadings and shall do so. the freely to be amended are issues not raised When presentation of the merits of by express implied when the of the tried consent thereby and the parties, they respects in the action will be subserved be treated all as shall objecting satisfy party the court that they pleadings. in fails to if been raised had preju- pleadings may evidence would be the admission of such of the Such amendment findings then entered its Appellate of fact and conclu- ap- Rules Procedure. This and, January sions of law on in peal, therefore, is limited to the issues response arguments to additional and re- presented by Richardson. quests in correspondence submitted Richardson earnestly contends counsel, supplemented briefs them on that the trial court in failing grant erred March 1989 and March 1989 to his motion for a new trial prem which was appropriate correct ways. them surprise ised on the basis of proceed any recovery court limited of commissions ings. Analysis depends upon of this issue during peri- Schaub to those earned proper application 59, W.R.C.P., of Rule od that he was a licensed real estate bro- states, pertinent part: ker.3 The entered in- * * * “(a) A may granted new trial $36,735, interest, plus cluded for Schaub’s parties, all or and on all or
services
connection with the Bennett-
part of the issues.
aOn motion for a
Carder land trade. The court ruled that
new trial
an action tried without a
$10,600
Richardson’s claim for the
loan was
jury, the
may open
judgment,
court
if
barred
the statute of limitations. With
entered,
one has been
take additional tes-
respect to the claim for
share of
Schaub’s
*5
timony,
findings
amend
of fact and con-
costs,
the court concluded it
clusions of law
findings
or make new
was unable to determine the amount of
conclusions,
entry
and direct the
aof
simply
Schaub’s share and
awarded Rich-
judgment. Subject
provisions
new
the
damages.
ardson
in nominal
$1.00
The
may
granted
of Rule
a new trial
be
judgment incorporating the several deter-
any
following
for
of the
causes:
April
minations was entered on
ing
dismissed,
these motions and then denied
amount. The
sions.
judgment. Richardson’s motion was based
damages
in the amount of the assessment of his
evidence.
dence with
for commissions on the Bennett-Carder
sessment of
upon
parties submitted motions for a new trial
or,
Following
in the
judgment
that the evidence
tradе,
his
Schaub initiated a
surprise
alternative,
and the
Schaub’s
upon Richardson’s
error in the amount of the as-
respect
the
and claimed
damages,
of the trial
trial court held a
entry
sufficiency
to a claimed different
motion
to alter or amend the
supported
respect
of
the
court,
newly
judgment,
cross-appeal
asserted error
sufficiency
to the claim
motion,
of the evi-
them,
hearing
but
discovered
its conclu-
it was
find-
both
be-
on
of
adoption
Procedure. See Harden v.
based on
been adhered to in
of a trial court on a motion for a new trial
tion. Medlock v.
(Wyo.1990);
on the motion will not be overturned on
motion for a new
appeal in the absence of an abuse of discre-
afforded broad
prudence
against;
“(3)
applying
(Wyo.1986).
from making the Sec- repayment terclaim for of the loan. 1-23-105, tion W.S.1977. Schaub raised the statute of as limitations statute, applying reply this we have held that an affirmative in his defense to Rich necessary is to some ardson’s counterclaim. it demonstrate sort of amended The evi writing signed by person charged dence concerning the be that Schaub offered the agent. loan Czapla or his authorized v. demonstrated that it was made in 1975 Grieves, (Wyo.1976). up repaid. 549 P.2d for start was not The 650 The costs and writing by any need not made as a loan was be memoran- not evidenced written contract, however, agreement dum of the nor must it that was offered at trial. The contemporaneously period bringing made with the of be for- limitations an action (Sec- agreement eight mation of the contract. Restatement recover on such is ond) 133, l-3-105(a)(ii), (1981). years. If 136 Section Contracts W.S.1977. §§ of writing repayment is such a included in no time is There fixed of Battlefield, loan, pay property obligation record. Inc. filed a arises immedi report Department ately, begins with the States and the of United statute limitations Housing Development run and Urban on to from the date of the loan. Johnson February signed Wold, (Wyo.1970). v. 714 1979. Richardson 475 P.2d That Battlefield, report president applicable rule is here. Inc. A Richardson filed Battlefield, years financial statement for Inc. is his counterclaim in some twelve
1311
argument
repay-
that the
The structural flaw the
ad
demonstrated
after Schaub
by
majority
simple
but fatal.
loan
due.
vanced
ment of the
“agreement”
The
referred to
broker’s
of limi
asserting
statute
majority
prior
occurred
to the time
defense,
defending party
tations as a
acquired his
broker’s license
the statute
the bar of
support
must
agreement
1982. That
is then void under
party
the other
by proof, and
limitations
33-28-115 and cannot be used to es
W.S.
to avoid the
must introduce evidence
then
identify legal obligations.
tablish and
Dix
statute.
cases
consequences of the
See
(Wyo.
Ringsby,
on v.
275
Limitations
Action
cited in 54 C.J.S.
1965);
Capri, Wyo.
65
202
Owens
(1987).
met his burden
§
(1949).
legal obligations
Without
the date of
loan. The burden
proving
identified,
(Second) of
Restatement
Con
that the
proof to demonstrate
bar
(1981)
tracts
cannot be satisfied.
§
apply
limitations did not
then
statute of
(Second)
Without Restatement
of Con
E.g.,
that of Richardson.
Olson v.
became
tracts,
satisfied,
being
supra, §
Co.,
(Wyo.1985).
violation Real Wyoming rules of the Estate as the added.) (Emphasis Commission. Aviation, Inc., Under Doran v. Imeson simply, story more we have To tell the 586, F.Supp. (D.Wyo.1976) 419 588 and Dix- unqualified corporation winning a on, 271, P.2d 405 W.S. 33-28-1152 which was never judgment on a claim illegal held to mean a contract is or void provеd an individual— pleaded nor made in of that statute. when it is violation corporation collecting on that not Void, — entered into a not voidable. Schaub judgment. “brokerage agreement” with Richardson many years a before Schaub became 1975— B. BACKGROUND only licensed broker. Schaub was specific April around one broker in from 1982 to appeal centers Jan- the trial If uary for which court award- the “verbal” re- transaction report The real estate commis- in the 1979 to HUD is void ed a commission. ferred to developer’s from claim comes land under W.S. 33-28-115 because Schaub was sion performed by engi- when he the broker’s trade for services broker made neering agreement, legal firm Bennett-Carder then there are no obli- $36,735 gations identify. and accrued in- Canyon Ranch of This means Restate- $15,857.28 (Second) Contracts, computed supra, back to 1984. ment terest of § legal operate The trial court awarded commission cannot because there are no obligations identify. it found was a licensed real The statute of because during the time the Ben- estate broker frauds then remains unsatisfied because transaction, despite writing the fact there is no note or memorandum nett-Carder “agreement” upon legal which the com- which can have effect. The statute that the operate. he was then mission was based occurred before of frauds continues licensed broker. This decision was made argue To that the Bennett-Carder land despite the fact that H & S Inc. awarding as the trade can serve basis realtor, oper- under which a Utah thirty percent Schaub a commission for the qualified provide real ated was never land trade because sales activities under our statutes. estate during trade occurred the time when result, easily this court condones rec- As a did have a broker’s license is to Wyoming real estate ognized violations of principles statutory violate the construc law, penal- involving both criminal and civil previously tion touted this court. See strongly reject approach. such an ties. I Cyr County v. Board Com’rs Platte (Wyo.1989); County, 780 P.2d 988-89 C. ANALYSIS State, (Wyo. Story v. 755 P.2d Insufficiency 1988); State, the Evidence.
I. v. 751 P.2d Schultz (Wyo.1988); Equalization v. State Bd. of states: W.S. 33-28-115 Co., (Wyo. Tenneco Oil instituted, No action or suit shall be 1985); Kamp Kamp, had, court of this recovery nor (Wyo.1982). by any person compensation state *9 989, renderеd, In P.2d at we said “it is not Cyr, done or 780 any act service inter necessary 33-28- to resort to construction or prohibited is under this act [§§ plain.” pretation meaning is We through 101 to other than where 33-28-206] brokers, give to all sections of the statute licensed associate bro- “effect licensed ordinary meaning” per- [give] words their kers or licensed salesmen unless the “purpose and direction” of the under this act at the to find the son was licensed says 33-28-115 perform any or statute. Id. at 988. W.S. offering time act no suit shall be instituted nor shall recov procuring any promise to service or 2. Then numbered W.S. 33-355.15.
1313 person was li the” real estate laws were ery be had “unless enacted. act at the time censed under this v. Curry, Chemical Co. 778 P.2d of offer Stauffer perform any pro ing 1083, act or service or (Wyo.1989), 1093 we said this court any, promise to contract curing statutory follows the rule of construction payment compensation contem legislature presumed that “the is to intend added.) plated (Emphasis act or service.” legislation adopt that is reasonable Schaub was not a licensed broker at the logical adopt and does not intend to stat- offering plain time of in 1975 or 1979. The Tоday’s that are futile.” holding utes is I meaning of the statute —as understand language inconsistent with that in Stauffer plain meaning Schaub cannot re —means legis- and renders futile the Chemical Co. during cover for a transaction the short lative enactment of W.S. 33-28-115. time he was a broker because Schaub was not licensed at the time of the “verbal Unpleaded II. Claim Award. agreement agreement.” Permitting the why original There a is second reason during period have force of Schaub’s present holding faulty. is plain brokerage license violates both the portray To the horrendous nature of the navigation meaning of the statute and the made, necessary mistake it is to review the principles al which we have said we use to proceedings record un- from which this understanding legislative in guide our expected gift ultimately to Schaub is de- County tent. v. See Archuleta Carbon Perhaps message, there rived. is a but it (Wyo. No. 787 P.2d 94 School Dist. exculpated cannot be from or stare decisis 1990) ex rel. State Workers’ Try “How to Lawsuits” handbooks and lec- Miller, (Wyo. Comp. Div. v. 787 P.2d 90 tures. 1990). After the close of evidence and before advanced, argument al The one other argu- the decision was mаde to submit final aside, equally fatally as an flawed. most is memoranda, by filed a ment rather normal majority argues had done “Schaub event wherein Richardson’s coun- occurred required he to do in order to all that sel first stated: agreed upon commission” under earn Honor, MR. HONAKER: Your performance rule of full discussed in record, Johnston, would like to make v. 657 P.2d 359- Defendant Lambousis (Wyo.1983). That statement is com amend the con- a motion to pletely unsupported simply begs the and. form to evidence. void, agreement question. If the Any objection? THE COURT: simply part commission” is “agreed make the same MR. SNOW: We would agreement. only way of that void motion. say all that majority can Schaub had done Any objection? THE COURT: required accept to do is to as valid he was No, MR. HONAKER: sir. agreement previously the law has held No, MR. SNOW: sir. Lambousis, is void. The discussions THE Then the motions for COURT: which, turn, Engle discusses P.2d granted. both sides are Chugwater, First Nat. Bank discussion, subject further Without McKeon, 36 (Wyo.1979) and Stewart v. colloquy closed and no ensued as to what (1927), P. 1024 refer to the
Wyo. might pleadings.” in “amended be involved performance full of verbal render contract which the law does not argument final memoran- the written before, agreеment was void. As noted trial, following dum then made Lambousis, void and reliance on caught threw out a small hook which misplaced. 358 is judgment: of a whale A needs to be added to Bowlerama, trade which Re- As Inc. v. Woodside *10 of ten Commis- Exhibit is the trade Co., (Wyo.1988), alty arranged J., sary Ranch lots which Schaub Urbigkit, dissenting, “[tjhis I see deci- did exchange for work Bennett-Carder poorly servpng] purpose for which sion * * * Canyon agreements required trade the broker to Spring Ranch. light pay thirty percent development to in the course of de- costs trade came of Kessner. Spring fendants’ cross-examination Ranch. and this included Creek * * * $122,- The value of these was proof Richardson’s Creek Ranch * * * lots traded 450.- These were consequently included the traded services benefit, for Richardson’s involv- engineering out services for which first non-Commissary development Ranch ing phase exchanged. lands This record were work. evidence, any suggestive let is devoid evidence, alone valid that an provided 41 had Schaub’s basic Exhibit parties applied was ever made between each claim for commissions and included any pleaded issue that a commission unpaid were de- item for whiсh balances project paid would be for traded out devel- Actually, manded. and mem- opment respon- services. The histrionics in litigants made clear oranda filed both by Richardson under- sive contention are traded for services that lands accepted the trial court standable since subject not to commission since were gambit non-pleaded,3 non-proved to create obligated develop- pay only judgment, a but award four costs, thirty percent, the use of ment and though year’s interest and to do so even proportionately par- to each lands insured completed the transaction was not until ty- substantially departed after had engi- The Bennett-Carder trade out of long- from the scene and was no neering services for land did not first occur qualified by Wyo- himself to transact er Ranch, phase, Spring Canyon in the second brokerage ming real estate business. $40,000 had occurred in 1979 as a trade but surveying in the initial out for services absurdity, triggering To add to the Commissary project. Ranch First Phase upon event which a commission is now transaction, granted completed not the close of no claim had At the acceptance but was the any way any made in of these been would of the identified lots which serve as land trade transactions were activities for compensation Perhaps for their services. broker, Inc., H which the & S guidepost litigants, only if to serve as a Schaub, principle, com- and its should be pathway following post-trial initial ar- pensated. Actually, the evidence later gument contention to final subject the trial court on the had used appeal appendix attached as an reflect- in address- presented been ing subsequent pleadings on if this issue ing pleaded his thesis that oral case, upon, land decision.4 This was not a waiver see agreements were relied those issues, Accordingly, subject unpleaded acreage I total due us. I have 3. On the same majority following that a parcels cannot concur with the statute selected the to arrive at the properly pleaded to $40,000.00. of limitation defense was deny repayment fee Unit C-l lots 20 and total 25, ad- to Richardson for his cash and Unit C-3 lot Unit C-2 lots 43 obviously ongo- part were vances which ing 2. premise upon which this liti- account stated of lots totals 13.358 acres This combination gation admitted the debt аnd was tried. Schaub $40,074.00 per acre. $3000.00 based nonpayment should have been faced its lots, up pay you these we will If we end with accounting proceedings in the with its inclusion your I will be in $74.00. the difference case. which constitute this complete area next week and would like to time, possible. if the land transfer at that |40,000 Evidencing trade for which a first closing, express my apprecia- I want to not claimed and also not al- commission was working relationship tion the excellent we which, significant lowed are several exhibits during project. have had It has been part, relate: working you pleasure real Jack. H & S Letter of Bennett-Carder responsive January The letter was Marketing, Inc.: repre- to a 1979 handwritten note from Schaub agreed, originally we are receive our As stating: sentative of Bennett-Carder Commissary Ridge engineering fee Sorry delay getting this infor- about the parcels in land within the subdi- Subdivision you you. As I mentioned to on the per mation to $3000.00 acre is vision. I understand you determining phone, it is Jack’s desire that choose those price we are to use in
1315
Thur
Co. v.
January 25,
Standard Uranium
agreement
Western
of
1975 was exe-
ston,
(Wyo.1960),
cuted,
entity
certain
subsequently
P.2d 377
and
thе
created
355
theory
by express
the
ly
of
case tried
operational
not
and its
status as the transact-
Title
see
resolution,
implied consent
entity
or
ing
was confirmed.
Guaranty
Wyoming v. Midland
Co. of
Wyo-
It
serve well the interest of
would
Co.,
Mortg.
(Wyo.1969)
P.2d
and
451
798
majority
ap-
if
least
had
ming law
the
Douglas,
v. Town
Lore
P.2d 367
355
of
plied
non-qualifi-
trial court’s
the
thesis of
(Wyo.1960).
Doran,
realtor,
586;
F.Supp.
cation of a
Rosenblum,
Rosenberg
v.
91,
Wyo.
Allowing a
to an Un-
III.
Commission
(1953),
any judgment
P.2d 41
and
to
denied
Corporation.
qualified
corporation.
It
not nec-
unqualified
the
error,
holding ut
majority’s
the
In third
far
essary
Wyoming
to wander
statutes
preserve
intent.
terly
legislative
fails to
recognition
unqualified
to achieve
that
Es
By
Through
v.
and
Real
Toavs
State
corporation
engage
cannot
in the real es-
Commission,
tate
(Wyo.1981);
dants themselves. trial, plaintiffs and both defendants amend the in this
moved to to the evidence. No
case to conform side, made either objection was * * * granted court the motions.
