Chambers v. Thomas

844 P.2d 698, 123 Idaho 69, 1992 Ida. LEXIS 183
CourtIdaho Supreme Court
DecidedDecember 23, 1992
Docket19561
StatusPublished
Cited by8 cases

This text of 844 P.2d 698 (Chambers v. Thomas) is published on Counsel Stack Legal Research, covering Idaho Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Chambers v. Thomas, 844 P.2d 698, 123 Idaho 69, 1992 Ida. LEXIS 183 (Idaho 1992).

Opinion

McDEVITT, Justice.

BACKGROUND AND PRIOR PROCEEDINGS

On September 16, 1976, Bob Thomas, now deceased, entered into a real estate purchase and sale agreement with the Stuckis, selling the Stuckis his two-hundred (200) acre farm located near Howe, Idaho *70 (“Thomas-Stucki Contract”). At this time, the entire parcel was subject to two FmHA mortgages each in the amount of $30,-000.00.

On March 2, 1977, the Stuckis assigned their entire interest in the Thomas-Stucki contract to the Bacon Company (“Bacon”). Under the Stucki-Bacon Assignment, Marvin Stucki’s father, Wendell Stucki, assigned his interest in two other farms, the Owens and Harshbarger farms, to Bacon. In his deposition, Marvin Stucki testified that the purpose of this transfer was for Bacon to secure “long-term financing” for the mortgages encumbering the 200 acres.

On March 17, 1978, Bacon entered into a real estate exchange agreement with Chambers (“Bacon-Chambers Agreement”). Under this agreement, Bacon sold its interest in the Owens and Harshbarger farms and 160 acres of the 200 acre Thomas-Stucki farm. Approximately three weeks later, Bacon executed an assignment of contract and warranty deed for the 160 acres.

The consent of Thomas was not obtained for the Stucki-Bacon or the Bacon-Chambers transfers.

In late August of 1978, FmHA notified the Stuckis that Chambers was not a qualified borrower under the terms and conditions of the FmHA mortgages against the Thomas farm and that they would foreclose their mortgages against the entire 200 acres if the matter was not resolved. Stucki and Chambers refinanced the FmHA indebtedness using a home and the remaining forty (40) acres as security. The Stuck-is then approached Thomas to get the necessary deed. Chambers and Thomas dispute the extent of Chambers’ knowledge of Stucki’s efforts and contacts with Thomas.

Stucki traveled to California to persuade Thomas to execute the necessary deed. As a result, Stucki and Thomas executed an amendment and addendum to the contract of sale on May 23, 1979 (“1979 Amendment”). Under the terms of the 1979 Amendment, Stuckis agreed to increase the interest rate on the contract by two percent (2%) in exchange for Thomas’ agreement to deliver the necessary deed. The two original FmHA mortgages were then paid in full.

The Stuckis eventually declared bankruptcy. After the bankruptcy, Chambers continued making payments on the Thomas-Stucki contract until 1989, when the district court ruled that the 1979 Amendment increasing the interest rate payment was secured by the 160 acres. However, neither the Stuckis nor Chambers ever made the additional 2% interest payment. Chambers then stopped paying on the contract, and Thomas requested foreclosure of the Stuckis’ and Chambers' interest.

After the district court held that the 1979 Amendment was enforceable against Chambers, Chambers made two motions to amend his complaint to add a claim for recovery of monies paid under the contract after 1979. Both motions were denied by the court.

On January 24, 1990, the district court granted partial summary judgment to Thomas and ordered the property be sold at judicial sale. At this point, however, the court did not decide the personal liability of the Stuckis or Chambers. After the proceeds of the sale were determined insufficient, the district court rendered judgment partly in favor of Chambers and Thomas and entirely against the Stuckis. Thereafter, a new district judge succeeded the original judge, vacated the judgment, and ordered a new trial on the personal liability issue.

On March 5, 1991, Chambers served a notice of redemption upon the sheriff and Thomas. Thomas moved to strike the notice, and the court, on April 25, 1991, denied the motion without an evidentiary hearing.

On April 29,1991, the Stuckis settled and were dismissed from the action.

On June 18, 1991, the district court granted Chambers’ motion for summary judgment. In doing so, the court ruled that Chambers was not personally liable on the original contract. On August 20, 1991, the court denied Thomas’ motion for reconsideration.

*71 On September 27, 1991, Thomas filed a notice of appeal pursuant to I.A.R. 11(a)(1). Thomas appealed “from the Memorandum Decision dated June 18, 1991, and the Orders dated April 25, 1991 and August 20, 1991....”

On October 15, 1991, Chambers filed a notice of cross-appeal pursuant to I.A.R. 11(a)(1). 1 Chambers cross-appealed “from the Order entered October 10, 1989, the Memorandum Decision entered November 17, 1989, and the Order entered July 19, 1990....”

ANALYSIS

The parties raise the following issues on appeal and cross-appeal:

I. Was the district court correct in ruling that Chambers was not personally liable for the performance of the Thomas-Stucki contract?
II. Was the district court correct in ruling that the parol evidence rule precluded consideration of Chambers’ deposition testimony regarding assumption of the ThomasStucki contract?
III. Did the district court err in granting Chambers a right of redemption?
IV. Is Thomas entitled to reasonable attorney fees and costs on appeal?
V. Did the district court abuse its discretion in denying Chambers leave to amend his complaint?

I.

Was The District Court Correct In Ruling That Chambers Was Not Personally Liable For The Performance Of The Thomas-Stucki Contract?

The district court correctly ruled that Chambers was not personally liable for the performance of the Thomas-Stucki Contract. In order for Chambers to be personally liable on the Thomas-Stucki Contract, he would have had to assume Stucki’s obligations under that contract. In order to determine Chambers’ obligations, we must look to the Bacon-Chambers Agreement. The relevant portion of that agreement provides:

NOW, THEREFORE, it is hereby mutually agreed as follows:

******
2. That to induce [Chambers] to pay the said sum of money and to accept the [Thomas] contract, and the rights [and] obligations pursuant thereto[, Bacon] hereby representas] to [Chambers] as follows: ...
3. That in consideration of [Bacon] executing and delivering this agreement, [Chambers] covenants] with [Bacon] as follows:
a. That [Chambers] will duly keep, observe and perform all of the terms, conditions and provisions of the [Stucki-Thomas] agreement that are to be kept, observed and performed by [Bacon].

Chambers agreed that he would be obligated to do anything that Bacon was obligated to do. The final piece of the puzzle, then, is to look to the Stucki-Bacon Assignment. Nowhere in the Stucki-Bacon Assignment does Bacon assume personal liability for the Thomas-Stucki contract.

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Bluebook (online)
844 P.2d 698, 123 Idaho 69, 1992 Ida. LEXIS 183, Counsel Stack Legal Research, https://law.counselstack.com/opinion/chambers-v-thomas-idaho-1992.