Cude v. Tubular & Equipment Services, LLC

388 P.3d 170, 53 Kan. App. 2d 287, 2016 Kan. App. LEXIS 74
CourtCourt of Appeals of Kansas
DecidedDecember 23, 2016
DocketNo. 115,460
StatusPublished
Cited by1 cases

This text of 388 P.3d 170 (Cude v. Tubular & Equipment Services, LLC) is published on Counsel Stack Legal Research, covering Court of Appeals of Kansas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Cude v. Tubular & Equipment Services, LLC, 388 P.3d 170, 53 Kan. App. 2d 287, 2016 Kan. App. LEXIS 74 (kanctapp 2016).

Opinion

Green, J.:

Following a bench trial, Tubular & Equipment Services, LLC, (TES) appeals from a civil judgment that it breached its written contract to purchase a tract of real estate from James S. Cude, Jr., Lisa Cude, and Ruth Eleanor Cude (collectively, the Cu-des). TES specifically argues on direct appeal that the trial judge erred in admitting and considering the contents of a letter written [288]*288after tire contract in determining whether TES had breached the written contract. TES contends that the examination of such evidence was barred by the parol evidence rule. We disagree. Accordingly, we affirm.

TES owned property that adjoined tire Cudes’ property. On April 27, 2011, the Cudes entered into a written contract to sell their land to TES for $80,000. The written contract was for the sale of their 40-acre tract. The closing was set for August 1, 2011. The contract contained a provision that required the Cudes to deliver marketable title “free from encumbrances, except easements, restrictions, zoning ordinances, and rights of way of record.” If the Cudes failed to deliver marketable title, the contract provided that TES could declare it void.

On May 16, 2011, the Cudes obtained a Title Insurance Commitment for the property. After the contract was executed but before closing, TES sent the Cudes a letter, identifying a possible encroachment on the Cudes’ property. The encroachment consisted of a neighbor’s trailer home that was physically sitting, at least partially, on the Cudes’ property. Both parties to the written contract made attempts to get the trailer home removed. The alleged encroachment was still an issue on the date of closing. Under a specific contract provision, TES extended the closing date to August 31, 2011.

On August 4, 2011, TES’s attorney advised the Cudes that TES had made an agreement with the neighbor who owned the encroaching trailer home to have it removed. On August 22, TES’s attorney, however, wrote a letter to the Cudes stating that TES would not pay the agreed upon contract price for the property. The Cudes understood this letter to mean that TES was “asking for a[nother] financial sum to be agreed on.”

On August 30, 2011, TES’s attorney informed the Cudes by letter that because the encroaching trailer home had not been removed, TES would not close the purchase of the 40-acre tract.

After TES refused to close, the Cudes relisted their property for sale. The Cudes sold the property to Wayne E. Bright for a total of $45,000. Deeds to the property from the Cudes to Bright were delivered at closing and recorded on April 2, 2012. Bright then made [289]*289a contract on April 6, 2012, to sell the property to TES for $50,000. Brights deed to TES was dated April 10, 2012, and closing was held on April 11, 2012. The trial court later noted that it believed that “there was an agreement all along that [TES] was going to purchase this property from Mr. Bright.”

The Cudes sued TES for breach of contract on June 26, 2013, claiming that TES had breached their earlier written contract of April 27, 2011. The petition also claimed misrepresentation and fraud based on the later sale between Bright and TES. Because the second cause of action is not relevant to the present appeal, it will not be discussed further.

Following a bench trial, the trial judge instructed the parties to submit proposed findings of fact and conclusions of law. After the parties submitted their proposals, the trial judge entered his decision in a memorandum opinion. The trial judge concluded that TES had breached its written contract with the Cudes.

In support of its conclusion, the trial court relied heavily on the following finding of fact: “On August 4, 2011, [TESs attorney] wrote [the Cudes attorney] advising that [TES] had taken steps to clear the way for closing in the near future by reaching an agreement with [the neighbor] regarding the moving of the trailer.” The trial judge concluded that the letter from TESs attorney “removed the encroachment issue as an impediment to providing [marketable] title and the closing of tire contract.”

TES moved to reconsider the trial courts decision. A hearing was held on TESs motion. At the hearing, TES took particular issue with the trial judges consideration of the August 4,2011, letter, which TESs attorney wrote to the Cudes’ attorney. At the close of his argument at the hearing, TESs attorney stated:

“I would ask the Court to reconsider its ruling and place no more evidentiary value on that one sentence of my August 4th letter than it would on anything else. Matter of fact, that should land of be ignored by the Court simply because all the parties agreed that the only agreement between the parties is this contract that was Exhibit 1. That was the entire agreement, no others; and it required that the plaintiffs be prepared to deliver fair and marketable title, which toith the encroachment they could not do.” (Emphasis added.)

In response to this contention, the Cudes argued the following:

[290]*290“The Court is correct in its decision. It’s correct in [TES] did not have an objection to closing and then they just failed to close on the date specified .... They ended up getting the property, and so there was no impediment to them being able to get that property. They just simply did not want to pay the price that we fisted in the contract and breached that contract.”

The trial judge denied TES s motion for reconsideration. TES filed a timely notice of appeal.

Did the Trial Judge Err in Considering Letters Written hy TES’s Attorney to Determine Whether TES Breached the Written Contract?

TES argues on appeal that “the trial court erred in admitting, over its objection, evidence outside of the contract to determine whether the contract had been breached.” TES further “argues that the contract was complete and unambiguous; hence, introduction of additional terms violated the parol evidence rule.” TES specifically takes issue with the trial court considering the August 4, 2011, letter written by its attorney and sent to the Cudes. In response, the Cudes argue that the issue is not properly before this court because the parol evidence rule was not raised below.

Generally, issues not raised before the trial court cannot be raised for the first time on appeal. Wolfe Electric, Inc. v. Duckworth, 293 Kan. 375, 403, 266 P.3d 516 (2011). This rule exists so that appellate courts do not interfere with trial court litigation. Wolf Electric, 293 Kan. at 403. Also, it is better for the parties to fully brief and argue the issue at the trial court level instead of an appellate court deciding the issue without having the benefit of reviewing the briefs and the trial court’s analysis. Wolf Electric, 293 Kan. at 403.

The Cudes are correct that TES did not specifically argue the parol evidence rule in its “Proposed Findings of Fact and Conclusions of Law.” The Cudes also argue that TES failed to make a parol evidence argument in its motion to reconsider. The Cudes correctly point out that the motion to reconsider was based on the notion that the trial courts decision was contrary to the evidence that was presented at trial. As stated earlier, TES s attorney made the following argument at the hearing on the motion to reconsider:

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Cite This Page — Counsel Stack

Bluebook (online)
388 P.3d 170, 53 Kan. App. 2d 287, 2016 Kan. App. LEXIS 74, Counsel Stack Legal Research, https://law.counselstack.com/opinion/cude-v-tubular-equipment-services-llc-kanctapp-2016.