Anderson v. Kohler

922 N.E.2d 8, 397 Ill. App. 3d 773
CourtAppellate Court of Illinois
DecidedDecember 21, 2009
Docket2-08-1206 Rel
StatusPublished
Cited by18 cases

This text of 922 N.E.2d 8 (Anderson v. Kohler) is published on Counsel Stack Legal Research, covering Appellate Court of Illinois primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Anderson v. Kohler, 922 N.E.2d 8, 397 Ill. App. 3d 773 (Ill. Ct. App. 2009).

Opinion

JUSTICE O’MALLEY

delivered the opinion of the court:

Plaintiffs, Richard A. Anderson and Sandra E Anderson, appeal the judgment of the trial court in favor of defendants, Donald J. Kohler, Betty J. Kohler, and Arrowhead Development Group, following a bench trial on plaintiffs’ complaint for breach of a contract for the sale of land. We affirm.

BACKGROUND

In March 2000, plaintiffs sued defendants, alleging that Donald Kohler (Kohler) agreed to sell Richard Anderson a parcel of land for use as an airstrip and that Kohler later refused to sell the land. In counts I and II of their complaint, plaintiffs sought specific performance of the contract. In count III, plaintiffs sought compensation for their efforts in preparing the airstrip for use in anticipation of the sale and for the cost of storing their planes with a third party once Kohler refused to sell the land. Defendants raised section 2 of the Frauds Act (statute of frauds) (740 ILCS 80/2 (West 2006)) as an affirmative defense; defendants asserted that any agreement for the sale of the airstrip was never reduced to writing and thus was unenforceable.

When the case was originally tried to the bench, the trial court entered a finding in favor of defendants following plaintiffs’ case-in-chief. We reversed that judgment. See Anderson v. Kohler, No. 2—02— 1274 (2003) (unpublished order under Supreme Court Rule 23) (Anderson I). While that appeal was pending, the judge who presided over the trial retired. On remand, the successor judge, over plaintiffs’ objection, barred them from presenting their case-in-chief anew and instead based his decision on a transcript of their case-in-chief, together with the new evidence presented in defendants’ case-in-chief and plaintiffs’ rebuttal case. Anderson v. Kohler, 376 Ill. App. 3d 714, 715 (2007) (Anderson II). We reversed and remanded for a full trial de novo at which the successor judge would make credibility findings based on his own observation of the witnesses. Anderson II, 376 Ill. App. 3d at 724.

At the bench trial on remand, Richard Anderson testified that he works in the aviation industry and has a machine and fabricating shop on his property in rural Sycamore. Richard and his son, David Anderson, own planes. The Sycamore property has a hangar for housing the planes. Richard had an airstrip on his property that was approved by the Illinois Department of Transportation (IDOT) in 1976. Richard and David would use the airstrip for business and pleasure flights. In spring 1994, Richard and David were clearing brush from the airstrip when they were approached by Donald Kohler, who owned adjacent property. Kohler proposed that he and Richard combine portions of their properties to make a subdivision. The portion Kohler suggested Richard contribute included the airstrip. When Richard voiced concern about relocating the airstrip on his property, Kohler suggested that it would be “easier” if Richard instead built a new airstrip on a portion of Kohler’s land that he recently purchased from his neighbor, Ray Larson. Richard said he would have to stake out the airstrip to see if the property was large enough. Kohler said “fine” and invited Richard to stake it out. Richard asked Kohler “are we going to buy this or what are we doing,” and Kohler replied that “he would sell [Richard] the runway.” Kohler then mentioned the issue of price and noted that he had paid Larson about $1,300 an acre for the property. Richard suggested that he and Kohler “have an appraisal and go [with] fair market value.” Kohler said that this was “fine.” Richard and Kohler also agreed that closing would occur once IDOT approved the new airstrip.

Richard testified that David was only intermittently engaged in the conversation because he continued to clear brush while Richard and Kohler spoke. David expressed disfavor with the subdivision proposal until Kohler told him, too, that the airstrip could be relocated to Kohler’s property. Richard denied that he and Kohler discussed at the meeting the possibility of renting the airstrip. Richard estimated that the conversation lasted about 30 to 45 minutes.

Richard testified that he and David staked out the property and found it adequate for the airstrip. They built the airstrip, which consisted of 11.5 acres. In March 1995, IDOT issued its formal approval of the airstrip. Even before that, however, based on IDOT’s informal approval, Richard told Kohler that they could “go ahead” with the subdivision and asked Kohler “when can I get [the airstrip] bought.” Kohler explained that the airstrip was currently under lease to Art Bingham, a farmer and mutual friend of Kohler and plaintiffs, and that closing would have to be postponed until the lease expired in 1998. Kohler proposed a “lease” to Richard “[a]long with a [sale].” Richard said that this was “fine,” and Kohler told Richard to speak with Bingham about subleasing the airstrip. Bingham agreed to a sublease, and Richard and David began using the airstrip in spring 1995. For the years 1994 and 1995, Richard paid Bingham “in kind” by letting him lease a portion of Richard’s land. For the remaining years, Richard paid money for use of the airstrip. The lease was entirely oral and was year-to-year.

Richard testified that he and Kohler proceeded with the subdivision, which they named the Arrowhead Subdivision. The development subsumed the airstrip on Richard’s property. Some of the lots for the subdivision were built entirely on either Richard’s or Kohler’s property while others overlapped both properties (the common lots). Richard testified that the terms of the subdivision agreement between him and Kohler were oral except for what related to the common lots. Plaintiffs introduced a copy of a joint venture agreement for the Arrowhead Subdivision, signed October 18, 1995, by Richard and Kohler. The joint venture agreement’s stated purpose was “to develop and sell lots 9, 10, 11, 12, 14, 15[,] and 26 in Arrowhead Subdivision.” Richard testified that the seven lots identified in the joint venture agreement were the common lots. The joint venture agreement provided that the costs of developing the lots were to be “shared as agreed by the parties.” The agreement also specified percentages for splitting the profits from the common lots.

Richard testified that the conversations in spring 1994 and 1995 were two of “several” occasions in which he spoke to Kohler about “buying” the airstrip. Richard testified that, though Kohler agreed at the spring 1994 meeting to sell the airstrip for fair market value based on an appraisal, they “never got to the point where we were going to talk about a [specific] appraiser,” because Kohler “avoided the subject.” When Richard raised the issue of an appraisal, “it was always just swept under the rug or put off’ by Kohler. Kohler would “always say, ‘Well, I can’t do that now’ or, ‘We really need to do a trade. Let me see what I got coming for property. I have a deal with [Bingham] here and there.’ ” Richard noted another occasion in which Kohler said “he’d have some problems without a trade.” Richard replied: “ ‘Well, I don’t mind helping to stay out of the government a little bit, but I’m interested in just buying this piece. Now, if you have something you want to direct the money [sic], that’s fine. I don’t care. That part of it is great.’ ” In 1996, Richard and Kohler attended an auction for farm property where they again spoke about Richard’s acquiring the airstrip.

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Cite This Page — Counsel Stack

Bluebook (online)
922 N.E.2d 8, 397 Ill. App. 3d 773, Counsel Stack Legal Research, https://law.counselstack.com/opinion/anderson-v-kohler-illappct-2009.