Brickner v. ONE LAND DEVELOPMENT COMPANY

742 N.W.2d 706, 2007 Minn. App. LEXIS 166, 2007 WL 4472288
CourtCourt of Appeals of Minnesota
DecidedDecember 24, 2007
DocketA06-1940, A06-1957
StatusPublished
Cited by12 cases

This text of 742 N.W.2d 706 (Brickner v. ONE LAND DEVELOPMENT COMPANY) 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
Brickner v. ONE LAND DEVELOPMENT COMPANY, 742 N.W.2d 706, 2007 Minn. App. LEXIS 166, 2007 WL 4472288 (Mich. Ct. App. 2007).

Opinion

OPINION

KLAPHAKE, Judge.

In these consolidated appeals from a declaratory judgment action, appellant One Land Development Company challenges the district court’s conclusion that respondents Margaret Brickner, acting for herself and as trustee of the Thomas E. Brickner Credit Trust, and Braam Investment, Inc., effectively canceled a real estate contract entered into between respondents and One Land. Respondent John Andrew Duckwall, a purported assignee of One Land, challenges the district court’s order concluding that he slandered respondents’ title and requiring him to pay attorney fees.

Because respondents canceled the contract in accordance with Minn.Stat. § 559.21 (2002), as modified by contract, we affirm the cancellation. Because Duck-wall did not rebut respondents’ proof of malice in the slander of title action, we affirm the slander of title determination. However, because of a contract with the subsequent purchaser of the real estate, respondents are responsible for only one-half of the attorney fees claimed as special damages in the slander of title action. Accordingly, we modify the award of attorney fees by reducing them by half to comport with this agreement.

*709 FACTS

Respondent Margaret Brickner, personally and as trustee for the Thomas E. Brickner Credit Trust (collectively, “Brick-ner”), owned land in Fridley on which was located a restaurant named Sandee’s. Respondent Braam Investments, which was owned by Brickner’s daughter, Cindy Braam, and son-in-law Garry Braam, operated the restaurant and leased the building from Brickner.

Appellant One Land Development Company is a Minnesota corporation engaged in real estate development. Thomas Gam-bucci is the principal shareholder of One Land. Gambucci, acting for One Land, wanted to purchase the Brickner property. One Land intended to build senior housing on the property and to continue to operate the restaurant. Appellant John Duckwall is a presumed assignee of the purchase agreement described below.

On April 22, 2002, respondents and One Land entered into a purchase agreement for the property and restaurant fixtures. According to the purchase agreement, One Land had 120 days in which to secure the necessary government approvals for construction; this was termed the “Approval Period.” Closing would take place no more than 30 days after expiration of the Approval Period. One Land could extend the Approval Period once by 60 days by giving respondents notice and paying $20,000 in earnest money. One Land exercised this option and extended the Approval Period from August 22, 2002, to October 22, 2002. One Land also waived-the contract precondition pertaining to government approvals.

Under the agreement, respondents warranted that they had “good and marketable” title to the property, “free and clear of any and all ... easements ... except as disclosed in this Agreement or in any exhibit containing permitted exceptions attached hereto.” It is undisputed that respondents’ attorney failed to attach an exhibit to the purchase agreement disclosing the existence of two easements located on the property.

The agreement further required respondents to provide a title insurance policy evidencing tax liens, bankruptcies, judgments, assessments, and pending assessments. This was collectively known as “Title Evidence.” One Land then had 20 days to examine the Title Evidence and make objections to it, and respondents had 60 days to cure any defects based on those objections. Closing would occur on the scheduled closing date or within 10 days after the notice of cure, whichever was later. One Land could either terminate the agreement if respondents failed to cure defects or waive any objections.

On October 11, 2002, One Land received the title insurance policy, with an effective date of August 19, 2002. This policy included a reference to three easements. One Land’s only comment to the policy concerned one of the easements, which had been erroneously included. A second title insurance policy was issued on November 6, 2002, deleting the erroneous easement. On November 12, 2002, respondent notified One Land that closing had to occur by November 22, 2002, or One Land would be in default under the terms of the purchase agreement. No closing occurred.

On December 9, 2002, respondents served a notice of statutory cancellation under Minn.Stat. § 559.21 (2002). According to the purchase agreement, the parties agreed to cancellation in accordance with Minn.Stat. § 559.21 in the event of a default and also agreed that the 60-day statutory notice period would be shortened to 30 days, as permitted by Minn.Stat. § 559.21, subd. 4. The notice gave One Land until January 8, 2003, to close. No closing took place, and One Land took no action opposing cancellation.

*710 On January 8, 2008, Gambucci notified respondents’ attorney that he had assigned his interest in the contract to Duckwall. Although Gambucci asserted that he had told respondents earlier of his intent to assign the contract, January 7 or 8, 2003, was the first time respondents learned Duckwall’s name and address.

On April 8, 2003, respondents entered into a purchase agreement with Town Center Development. Appellants did not contact respondents about the property from January 9, 2003, until December 3, 2003, when Duckwall filed a notice of adverse claim against the property. On February 2, 2004, Town Center entered into an agreement with respondents to pay 50% of any attorney fees and costs incurred by respondents in quieting title.

Respondents began this declaratory judgment action in April 2005. After a multi-day trial to the court ending on May 26, 2005, the court issued a preliminary order directing Duckwall to discharge the notice of adverse claim against the property. On August 23, 2005, the district court issued its second order, concluding that (1) respondents properly canceled the purchase agreement; (2) appellants abandoned their interest in the agreement; (3) appellants breached the contract by failing to close; (4) appellant Duckwall slandered respondents’ title; (5) appellants were not entitled to specific performance; (6) respondents had cured any potential breach of contract by providing last evidence of title and curing title defects; (7) respondents breached the contract by failing to remove easements, but appellants’ claim was extinguished by the valid cancellation of the purchase agreement and appellants waived their right to make a claim; and (8) appellants failed to set forth a prima facie case of fraud and misrepresentation. Judgment was entered on September 26, 2005.

The district court denied appellants’ motion for amended findings and/or a new trial on February 21, 2006 and appointed a special master to determine fees and costs pursuant to Minn. R. Civ. P. 53. By e-mail on February 27, 2006, the court acknowledged that it had not followed the recently amended Rule 53 and stated that the February 21-order would serve as notice of its intent to appoint a special master. Having received no objections, the court issued an order, appointing a special master.

The special master returned his report on April 6, 2006; the district court affirmed the report on June 28, 2006, and later awarded attorney fees of $156,957 and costs and disbursements of $19,080.46. Appellants filed a notice of appeal on October 12, 2006.

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742 N.W.2d 706, 2007 Minn. App. LEXIS 166, 2007 WL 4472288, Counsel Stack Legal Research, https://law.counselstack.com/opinion/brickner-v-one-land-development-company-minnctapp-2007.