DeWitt v. Fleming

828 N.E.2d 756, 357 Ill. App. 3d 571, 293 Ill. Dec. 446, 2005 Ill. App. LEXIS 335
Appellate Court of Illinois·Decided April 6, 2005·No. 5-04-0016·Published·Cited by 9 cases

Opinions

JUSTICE WELCH

delivered the opinion of the court:

The defendant, George C. Fleming, also known as Fleming Trust, appeals from the judgment of the circuit court of Montgomery County in favor of the plaintiffs, Dennis and Sheila DeWitt, on their small claims complaint to recover the cost of a survey performed on a parcel of land, which the defendant had orally promised to sell to the plaintiffs but subsequently refused to sell. On appeal, the defendant argues that the trial court erred in applying the doctrine of promissory estoppel because the doctrine of promissory estoppel cannot be used to bar the application of the statute of frauds. Because we conclude that promissory estoppel may be used as a defense but not as a cause of action, we reverse the judgment of the trial court.

Although no brief has been filed on behalf of the appellees, we are able to consider this appeal on the merits pursuant to First Capitol Mortgage Corp. v. Talandis Construction Corp., 63 Ill. 2d 128 (1976).

On August 18, 2003, the plaintiffs, pro se, filed a small claims complaint against the defendant. The plaintiffs sought to recover the cost of the survey, which was $2,382.45. In the complaint, the plaintiffs alleged that the defendant had orally agreed to sell them the property, that after the survey was performed, the defendant refused to sell them the property, and that the defendant refused to pay for the survey.

On September 11, 2003, the defendant filed a motion to dismiss the plaintiffs’ complaint, based upon the statute of frauds (740 ILCS 80/2 (West 2002)). The defendant argued that the complaint was “based upon a verbal agreement to sell real estate.” On September 19, 2003, the trial court heard arguments on the motion to dismiss and took the matter under advisement. By docket entry dated September 26, 2003, the trial court denied the defendant’s motion to dismiss. The docket entry provided, in pertinent part, as follows:

“Plaintiff is seeking to recover the cost of a survey, not to enforce a contract to sell real estate, the latter being clearly barred by the [s]tatute of [fjrauds. The factual situation at this stage of the proceedings is not sufficiently clear for the purposes of a [sjection 2 — 619 [(735 ILCS 5/2 — 619 (West 2002))] motion to determine if this claim is barred by [section 2 of the Frauds Act (740 ILCS 80/2 (West 2002))]. Accordingly, the [m]otion to [d]ismiss is denied and the [s]tatute of [f]rauds shall be considered as an affirmative defense.”

Following a bench trial on October 27, 2003, in which the plaintiffs presented uncontradicted testimony that the defendant had agreed to sell the land in question to the plaintiffs, the trial court took the matter under advisement. By docket entry dated October 31, 2003, the court entered a judgment in favor of the plaintiffs and against the defendant in the sum of $2,382.45 plus costs. The docket entry provided, in pertinent part, as follows:

“Plaintiff is bringing an action for the cost of a survey which he obtained to purchase a 16.7[-]acre tract from Defendant for $800 an acre. Plaintiff is not suing to enforce the oral agreement, so the action is not barred by the [s]tatute of [flrauds.
There was no contract to obtain a survey, so if the Plaintiff is to prevail, he must do so on the theory of promissory estoppel. The elements of promissory estoppel are: 1) a promise, 2) reliance on the promise which is reasonable, and 3) a detriment suffered by the party. In this case, Defendant promised to sell the tract to Plaintiff and stated that he had no objection to Tony Hard doing the survey; Plaintiff reasonably relied on that promise in obtaining the survey; and Plaintiff suffered a detriment when he had to pay for the survey but did not get to purchase the real estate.”

On November 5, 2003, the defendant filed a motion to reconsider. Following a hearing on December 8, 2003, the trial court denied the motion. The defendant filed a timely notice of appeal. On appeal, the defendant argues that the trial court erred in applying the doctrine of promissory estoppel because the doctrine of promissory estoppel cannot be used to bar the application of the statute of frauds. However, because we conclude that promissory estoppel may be used as a defense but not as a cause of action, we do not reach the defendant’s statute-of-frauds argument.

As this court explained in a recent ruling, in Illinois promissory estoppel is available only as a defense (i.e., as a shield), not as a cause of action (i.e., as a sword). In this court’s opinion in ESM Development Corp. v. Dawson, 342 Ill. App. 3d 688, 695 (2003), we stated explicitly that promissory estoppel “is not a proper vehicle for direct relief,” “cannot properly be pled as a cause of action,” “is meant to be utilized as a defensive mechanism — not as a means of attack,” and “does not form the basis for a damages claim.” Unlike our dissenting colleague, we are not convinced that the Illinois Supreme Court’s opinions in Doyle v. Holy Cross Hospital, 186 Ill. 2d 104, 110 (1999), and Quake Construction, Inc. v. American Airlines, Inc., 141 Ill. 2d 281, 287 (1990), directly contradict our holding in ESM Development Corp.

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DeWitt v. Fleming, 828 N.E.2d 756, 357 Ill. App. 3d 571, 293 Ill. Dec. 446, 2005 Ill. App. LEXIS 335 (Ill. Ct. App. 2005).

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DeWitt v. Fleming
828 N.E.2d 756 (Appellate Court of Illinois, 2005)