Block v. Litchy

428 N.W.2d 850, 1988 Minn. App. LEXIS 868, 1988 WL 93149
CourtCourt of Appeals of Minnesota
DecidedSeptember 13, 1988
DocketC4-87-2521
StatusPublished
Cited by6 cases

This text of 428 N.W.2d 850 (Block v. Litchy) is published on Counsel Stack Legal Research, covering Court of Appeals of Minnesota primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Block v. Litchy, 428 N.W.2d 850, 1988 Minn. App. LEXIS 868, 1988 WL 93149 (Mich. Ct. App. 1988).

Opinion

OPINION

RANDALL, Judge.

Appellant seller seeks relief from the trial court’s order denying her motion for a new trial. Appellant claims the court erred in granting ownership of the property to respondent buyer after the contract for deed between the parties had been can-celled. Appellant also argues that the trial court erroneously awarded respondent unjust enrichment damages resulting from respondent’s overpayments on the contract for deed. Finally, appellant contends that if respondent is entitled to damages, the statute of limitations bars all or part of the claim. We affirm in part, reverse in part, and remand.

FACTS

On October 15, 1970, respondent Gladys Block entered into a contract for deed with appellant Patricia Litehy (and her now deceased husband, Walter Litehy) for the purchase of appellant’s dairy farm. Respondent is a seventy-year-old divorced woman who suffered a stroke in 1979, although she is now in generally good health. Appellant is seventy-nine years old.

Under the terms of the contract, respondent owed appellant $33,600, and was to make biannual payments of $840 plus simple interest beginning March 1, 1971, and continuing for twelve years.

The contract also provided that,

at the buyer’s option, and at such time as the buyer has paid 60 percent of the original cost of the real estate, the sellers must convey the fee title to said property by warranty deed.

*852 Respondent’s payments throughout the term of the contract were erratic and of varying amounts depending on the productivity of the farm that year. Respondent kept no formal records of her payments on the contract for deed, but did make her payments by check.

In 1982, appellant, who also kept no formal records, erroneously informed respondent that approximately $8000 was left owing on the contract. Respondent did not dispute that amount at the time, but was unable to raise the money.

On October 30, 1986, appellant served a notice of cancellation of contract for deed on respondent. The notice stated that respondent owed $14,827.50 on the contract, $12,000 of which was principal and the remaining was interest accrued as of June 1, 1986.

In December 1986, respondent sought a temporary restraining order to postpone the contract cancellation. The trial court stayed cancellation proceedings by order on December 29, 1986.

The parties arrived at an agreement under which the court’s order staying cancellation of contract for deed proceedings was dissolved and appellant was permitted to continue that action. Appellant filed her notice of cancellation of contract for deed on March 13,1987, in the Crow Wing County recorder’s office.

As part of the agreement, appellant allowed respondent to rent the premises from February 1, 1987, to April 30, 1987, for $325 per month, with an option to purchase the property for the entire “unpaid” balance and accrued interest. The parties agreed that if the stipulation was approved and confirmed by a district court judge, no hearing on the matter was necessary. The parties’ agreement was approved by the court and incorporated in its March 9,1987, order.

Respondent made the monthly rental payments from February through April, but was unable to raise the needed funds to exercise the option at the end of the rental period. Appellant’s counsel sent a letter dated May 7, 1987, to respondent asking that respondent leave the farm by May 31, 1987.

On June 3, 1987, respondent filed her complaint with the court. In her complaint, respondent alleged she had paid over 60 percent of the purchase price, and therefore appellant breached the contract for deed by not giving respondent a warranty deed for the property as required by the contract. At this time respondent was still unaware that not only had she paid off the entire contract for deed, but she had overpaid appellant approximately $20,000. Respondent sought specific performance of the contract. Respondent also alleged she did not understand the stipulation included in the court’s March 9, 1987, order and requested the order be vacated. Appellant made a counterclaim seeking immediate restitution of the farm property.

Sometime in late June or July 1987, respondent’s employee located respondent’s cancelled checks from her payments on the contract for deed. A summary of the checks indicated that respondent had completed full payment on the contract for deed in June 1979, and since that time had overpaid appellant approximately $20,000. Appellant concedes that respondent’s can-celled checks speak for themselves, and does not dispute that the contract has been paid in full and that she has received substantial overpayment.

On August 4, 1987, the trial court heard arguments concerning appellant’s claim that despite respondent’s late proof of payment, the contract for deed had been legally cancelled, voiding respondent’s interest in the property. Appellant contends that following the March order confirming a cancellation, all legal title now vests in her. At this August hearing, respondent filed her reply to appellant’s counterclaim for legal title in which she alleged she had overpaid appellant more than $20,000 and should be reimbursed. At the hearing, the court joined the issues of legal title and unjust enrichment resulting from the overpayment to be tried together. Appellant objected to trying the issues together and wanted only the issue of ownership of the *853 property to be decided. Over objection, both issues were litigated together.

After a court trial on the merits of the case, the court entered judgment for respondent, awarding her possession of the property and ordering appellant to return all overpayments made by respondent, including interest.

Respondent sought to amend her complaint to conform to evidence adduced at trial in a post-trial motion heard November 3, 1987, at the same time appellant made her motion for a new trial. The trial court denied appellant’s motion for a new trial and did not address respondent’s motion to amend her complaint.

ISSUES

1. Did the trial court properly award title of the real property to respondent?

2. Did the trial court properly award damages to respondent for unjust enrichment resulting from overpayment on the contract for deed?

ANALYSIS

I.

Property Ownership

Appellant argues that she owns the farm because the contract for deed was cancelled by the parties’ stipulation incorporated into the trial court’s March 9,1987, order. Under appellant’s theory, once the trial court entered its order permitting cancellation proceedings to continue, all respondent’s legal rights in the farm were extinguished, equity notwithstanding, and legal title is vested in appellant.

Respondent, however, contends the stipulation and court’s order should be vacated because both parties erroneously believed respondent was in default of the contract at the time they entered into the stipulation. Respondent points out that both parties now agree that respondent has fully performed on the contract for deed and, in addition, has substantially overpaid to appellant.

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In re Petters Co.
499 B.R. 342 (D. Minnesota, 2013)
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Bluebook (online)
428 N.W.2d 850, 1988 Minn. App. LEXIS 868, 1988 WL 93149, Counsel Stack Legal Research, https://law.counselstack.com/opinion/block-v-litchy-minnctapp-1988.