Booras v. Uyeda

666 P.2d 791, 295 Or. 181, 1983 Ore. LEXIS 1343
CourtOregon Supreme Court
DecidedJune 29, 1983
DocketCA 18375, SC 28634, 28663
StatusPublished
Cited by41 cases

This text of 666 P.2d 791 (Booras v. Uyeda) is published on Counsel Stack Legal Research, covering Oregon Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Booras v. Uyeda, 666 P.2d 791, 295 Or. 181, 1983 Ore. LEXIS 1343 (Or. 1983).

Opinion

*183 PETERSON, J.

This is a suit for specific performance of an earnest money agreement which provided for later execution of a land sale installment contract. We hold that if the buyer seeks to avoid the contractual indefiniteness which would prevent specific performance of the contract on an installment basis by paying the entire balance in cash, the buyer must allege, in the complaint, facts showing why such relief is appropriate and a prayer for such relief. The failure to do so bars specific performance in this case.

Plaintiff Booras sued defendants Uyeda and Fenwick for specific performance of a contract for the sale of a Portland apartment building. 1 The trial court refused specific performance, but awarded Booras $20,000 as “equitable compensation.” On plaintiffs appeal, the Court of Appeals reversed the trial court and ordered specific performance “upon receipt of the purchase price in full with interest” with ancillary relief. Booras v. Uyeda, 56 Or App 834, 839, 643 P2d 413 (1982). We reverse the Court of Appeals and reinstate the trial court decree.

I

THEFACTS

The relevant facts are complex but must be summarized. In July, 1976, Uyeda listed the property with a realtor. In August, 1976, plaintiff made an offer to Uyeda on a standard printed “Earnest Money Contract” with additional terms added. In September, 1976, after negotiations regarding additional terms, the parties signed the agreement. The earnest money agreement was certain as to the property being sold; the price to be paid, $120,000; the down payment, $34,500; and payment of the $85,500 unpaid balance — “on a land sales contract at not less than $625.00 per month at 8% interest per annum which includes principal and interest.” A number of other provisions were not agreed upon. The contract included *184 a handwritten second page entitled “Addendum” which in part contained these additional provisions:

“1. Seller to carry contract of $85,500.00 as a second contract and give buyer deed to said property. Buyer to apply for First Mortgage.
* * *
* * *
«4 * * *
“5) Purchaser to provide security in other equity in the amount of $50,000. [Emphasis in original.]
“6) Sellers Attorney to approve legality of contract.
“7) Release clause in contact [sic] to free property in the event of potential sale by Buyer-Gradual Release of property as contract balance is depleted.”

Between September and December, 1976, plaintiff obtained a first mortgage commitment of $50,500 from a local savings and loan, and appraisals and photographs of the properties that he intended to use to secure the payment of the unpaid balance. Plaintiff then presented the photos, appraisals and proposed mortgage and security documents to Uyeda’s lawyer, Mr. Schneider. Schneider eventually concluded that the security would protect Uyeda and went to the Uyeda home to discuss the transaction with them. The Uyedas either did not understand the somewhat complex proposed security arrangement or did not want to go through with the deal.

In January, 1977, without prior notice to plaintiff, Uyeda relisted the property with another realtor. Defendant Fenwick, herself a realtor, became interested in the property and prepared an earnest money offer on her own behalf for its purchase. Although the price was the same as the plaintiffUyeda agreement, the terms were different. Fenwick was aware of plaintiffs claim to the property. Her offer contained this handwritten addendum: “Transaction subject to obtaining release of prior sale.”

Although a release from Booras had not been obtained, Uyeda accepted Fenwick’s offer in February, 1977, and a land sale contract was executed between Uyeda and Fen-wick in April, 1977. The contract made no reference to the prior sale. Fenwick took possession of the property, started *185 receiving rent from the tenants, and, as time went on, made substantial improvements. In mid-1977, Booras and Uyeda entered into negotiations toward settlement of his claim against Uyeda. These negotiations finally collapsed and in March, 1978, plaintiff commenced this specific performance suit against Uyeda and Fenwick.

Plaintiffs complaint alleged that his earnest money agreement was a binding and enforceable contract for the sale of the property and that Uyeda breached the contract by refusing to convey to him and instead conveying to Fenwick. His amended complaint concluded with this prayer for relief:

“1. Ordering said defendant Uyeda to specifically perform said agreement;
“2. Requiring defendant Fenwick to execute all documents required to convey said property to plaintiff and to quiet any claim said defendant may have on said property;
“3. To appoint a receiver to whom plaintiff may make payments as they fall due, and order defendant Uyeda to furnish the title insurance called for in the agreement and convey the property when the final payment has been made by plaintiff;
“4. Declaring defendant Fenwick a constructive trustee of the rents and profits received from the operation of said real property from the time she took possession until the present;
“5. Requiring defendant Fenwick to make an accounting of said rents and profits and pay the same to the plaintiff.
“6. In the alternative if the court should find specific performance to be equitably impractical, the sum of at least $20,000 as equitable compensation; and
“7. For plaintiff’s costs and disbursements incurred herein.”

Defendants asserted affirmative defenses that plaintiff had not satisfied all of the conditions precedent to defendant Uyeda’s obligation to convey, laches, estoppel, release, and lack of ability to understand the agreement.

After plaintiff rested, Uyeda moved for dismissal on the ground that the contract was too indefinite to be specifically performed. The motion was denied, and on June 23,1980, *186 the trial court signed a judgment which contained detailed findings of fact and conclusions of law, including the following:

“FINDINGS OF FACT
<<* * * * *
“9. Mr. Schneider objected to some of the language in the additional security and release documents, and demanded that it be stricken. Plaintiff agreed. Mr. Schneider said that he would draft the documents reflecting the changes, which he would recommend that his clients sign. This was during the month of December 1976. Nothing was heard from Mr. Schneider or the Uyedas until on or about January 21, 1977, when he informed Mr. Beres, the listing agent, that the Uyedas did not ‘understand’ and would not proceed with the sale. No reasons were given by Mr.

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Cite This Page — Counsel Stack

Bluebook (online)
666 P.2d 791, 295 Or. 181, 1983 Ore. LEXIS 1343, Counsel Stack Legal Research, https://law.counselstack.com/opinion/booras-v-uyeda-or-1983.