Barnhart v. McKinney

682 P.2d 112, 235 Kan. 511, 1984 Kan. LEXIS 341
CourtSupreme Court of Kansas
DecidedApril 27, 1984
Docket56,219
StatusPublished
Cited by66 cases

This text of 682 P.2d 112 (Barnhart v. McKinney) is published on Counsel Stack Legal Research, covering Supreme Court of Kansas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Barnhart v. McKinney, 682 P.2d 112, 235 Kan. 511, 1984 Kan. LEXIS 341 (kan 1984).

Opinions

The opinion of the court was delivered by

Holmes, J.:

Defendants Henry Lewis McKinney and Lillie Marie McKinney, husband and wife, appeal from an order of the trial court granting summary judgment to Lena Barnhart, plaintiff/appellee, in an action by plaintiff to quiet her title to five acres of land in Franklin County. The facts, of necessity, must be set forth in some detail.

Lena Barnhart and her husband, Dewey Barnhart, owned a farm of approximately 151 acres in Franklin County which they occupied as their home. On December 11, 1971, they entered into a contract to sell the farm, including the home and other improvements, to Lawrence realtors John M. McGrew, Edgar R. Grosdidier, and Kenneth P. Callicott (hereafter referred to collectively as McGrew), who were associated with McGrew Real Estate, Inc. The land sold was described in the contract as:

“The NE fractional V4 of Sec. 5, T16S, R18E; said tract containing approximately 151 acres less a tract to be more specifically described by an engineer’s survey, said tract to be agreed upon by both parties (containing 5 acres more or less). Said S acres are to be retained by Sellers as a site for a house trailer with the understanding that when Sellers decide to sell or vacate said 5 acres they will first offer it to Purchasers at a price not to exceed $200.00 per acre plus the cost of any permanent improvements to the real estate that have a residual value. The property to be conveyed to Purchasers for the below mentioned consideration shall be not less than 145 acres.” (Emphasis added.)

The purchase price was $34,500.00 with $27,000.00 of that amount to be carried by the sellers with interest at 7% per year and semi-annual payments of $1500.00 each. Deeds were executed by the Barnharts to the purchasers and placed in escrow, pursuant to the terms of the contract, with the Kansas State Bank of Overbrook, Kansas.

The contract was a printed form agreement furnished and prepared by the purchasers. The printed portion of the document contained, inter alia, the following:

“It is understood by the parties hereto that McGrew Real Estate, Inc., Law[513]*513rence, Kansas, is the real estate agent representing the Seller in regard to the sale of the above described property and the commission due is to be paid by the Seller.
“It is mutually agreed that all the covenants and agreements herein contained shall extend to and be obligatory upon the heirs, executors, administrators and assigns of the respective parties.”

Subsequently, the Barnharts installed a mobile home and other improvements on the 5-acre tract as contemplated by the contract. On April 17, 1972, McGrew sold 15 acres in the northwest corner of the property to a Mr. and Mrs. Frevert and retained the remaining 131.23 acres. The tract sold to the Freverts included the home and improvements formerly occupied by the Barnharts, who moved into the recently installed mobile home. Dewey M. Barnhart died May 16, 1974.

On July 1, 1975, McGrew entered into a contract to sell the remaining acreage to the defendants Henry Lewis McKinney and Lillie Marie McKinney. This contract was on a printed form identical to that used in the Barnhart sale and again was furnished and prepared by McGrew. The purchase price for the 131.23 acres was $39,000.00, and in the typewritten portion of that contract the parties agreed payment was to be made as follows:

“[U]pon approval of title, delivery of General Warranty Deed and possession of premises but in any event on or before but no later than August 1,1975, subject to an existing contract to Dewey M. Barnhart and Lena Barnhart in the approximate remaining balance of $18,754.95 which said contract in its exact remaining balance as of date of possession shall be deducted from the purchase price and which Purchasers hereby assume and agree to pay. Interest on said mortgage shall be pro-rated as of date of possession. Payments on said contract are $1,500.00 semi-annually with an interest rate of 7%.
“It is understood that Sellers will obtain written consent from Lena Barnhart for the assumption of said contract.” (Emphasis added.)

A consent to this sale and assumption of the December 11, 1971, contract was prepared and obtained by McGrew. The letter of consent was addressed to McGrew and stated in its entirety:

“Please consider this letter my formal consent to release the three of you from any further liability on your contract purchase of 151 acres, more or less, in the Northeast fractional Vi of Section 5, T16S, R18E, in Franklin County, Kansas.
“As I understand it, the three of you have sold the property to Henry Lewis McKinney and wife and that they will assume the existing contract balance of approximately $18,754.00 on or about August 1, 1975. I consent to Henry Lewis McKinney and wife assuming the above contract dated December 11, 1971. I [514]*514would, of course, expect them to make the payments promptly just as the three of you have.
Sincerely,
/s/ Lena Barnhart.” (Emphasis added.)

For the next seven years, defendants made payments to Lena Barnhart as required by the two contracts.

In early June, 1982, plaintiff contacted Ken Callicott of the McGrew agency to sell her five-acre tract with improvements. In accordance with the December 11, 1971, contract plaintiff told Callicott to first offer the property to the McKinneys. This was done in a letter to Henry McKinney from Callicott dated June 4, 1982, which stated in part:

“As per your contract with Lena she has instructed me to first offer the property to you on the following basis:
Land Value $1,000.00
Improvements: Two bedroom mobile 21,000.00 home, storm cave, well, septic tank, carport, sheds and fence _
$22,000.00 Terms Cash
“Lena would consider an installment contract sale on terms that would be acceptable to her. For an installment sale the price would be $26,000.00.
“Lewis if you are interested in the property please contact me. Lena would like to know by June 16, 1982 if you are interested.” (Emphasis added.)

On June 15,1982, Henry McKinney wrote back, denying that the mobile home, storm cave and carport were “permanent improvements to the real estate” as specified in the first contract. McKinney was of the opinion that the only additional permanent improvements to the land were the well, septic system, fence and storage shed. McKinney estimated the total cost of the land and these improvements to be $3,500 - 4,000, and said:

“I am willing to purchase the real estate and the four above listed permanent improvements for the $1000 for the five acres plus the cost of the specified four ‘permanent improvements to the real estate that have a residual value.’
“[T]he mobile home and contiguous integral structures would lose a sizeable part of their value if moved from their present location, sol would be willing in a separate contract to negotiate a fair price for the trailer plus car ports, storm shelter, etc.

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Cite This Page — Counsel Stack

Bluebook (online)
682 P.2d 112, 235 Kan. 511, 1984 Kan. LEXIS 341, Counsel Stack Legal Research, https://law.counselstack.com/opinion/barnhart-v-mckinney-kan-1984.