Earline Waddle v. Lorene B. Elrod

367 S.W.3d 217, 2012 WL 1406451, 2012 Tenn. LEXIS 290
CourtTennessee Supreme Court
DecidedApril 24, 2012
DocketM2009-02142-SC-R11-CV
StatusPublished
Cited by45 cases

This text of 367 S.W.3d 217 (Earline Waddle v. Lorene B. Elrod) is published on Counsel Stack Legal Research, covering Tennessee Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Earline Waddle v. Lorene B. Elrod, 367 S.W.3d 217, 2012 WL 1406451, 2012 Tenn. LEXIS 290 (Tenn. 2012).

Opinion

OPINION

CORNELIA A. CLARK, C.J.,

delivered the opinion of the Court, in which

JANICE M. HOLDER, GARY R. WADE, WILLIAM C. KOCH, JR., and SHARON G. LEE, JJ., joined.

In this appeal we must determine whether the Statute of Frauds, Tenn.Code Ann. § 29-2-101(a)(4) (Supp.2011), applies to a settlement agreement requiring the transfer of an interest in real property; and, if so, whether emails exchanged by the parties’ attorneys satisfy the Statute of Frauds under the Uniform Electronic Transactions Act (“UETA”), TenmCode Ann. §§ 47-10-101 to -123 (2001 & Supp. 2011). We hold that the Statute of Frauds applies to settlement agreements requiring the transfer of an interest in real property and that the emails, along with a legal description of the property contained in the cross-claim, satisfy the Statute of Frauds. Accordingly, we affirm the judgment of the Court of Appeals enforcing the settlement agreement.

Facts and Procedural History

On January 29, 2007, Regent Investments 1, LLC (“Regent”) sued octogenarian Earline Waddle, 1 and her niece, Lorene Elrod. According to the allegations of the complaint, Regent contracted to purchase from Ms. Waddle approximately four acres of real property located at 2268 Prim Lane, in Rutherford County, Tennessee (“the Prim Lane property”), for $230,000. Regent paid Ms. Waddle $10,000 earnest money when the contract was signed. However, in preparing to close the deal, Regent learned of a quitclaim deed by which Ms. Waddle had conveyed one-half of her interest in the Prim Lane property to Ms. Elrod. Regent sued Ms. Waddle, alleging breach of contract, fraud, and intentional and negligent misrepresentation. Regent requested specific performance, $1,000,000 in damages, attorney’s fees, costs, and pre-judgment interest. Regent also asked the trial court to set aside the quitclaim deed, arguing that Ms. Elrod had wrongfully obtained her one-half interest by exercising undue influence over Ms. Waddle.

On May 14, 2007, Ms. Waddle filed a cross-claim against Ms. Elrod, also alleging that Ms. Elrod had acquired her one- *220 half interest in the Prim Lane property-through undue influence. The cross-claim included a legal description of the Prim Lane property. According to the allegations of the cross-claim, after Ms. Waddle’s husband of more than fifty years died on February 12, 2001, Ms. Elrod began frequently visiting Ms. Waddle. In early March 2001, Ms. Elrod arranged for her own attorney, whom Ms. Waddle did not know, to draft both the quitclaim deed conveying a one-half interest in the Prim Lane property to Ms. Elrod and a durable power of attorney naming Ms. Elrod as Ms. Waddle’s attorney-in-fact. On March 15, 2001, Ms. Elrod drove Ms. Waddle to the attorney’s office and persuaded her to sign both documents. Ms. Waddle alleged that she did not have the benefit of independent legal counsel prior to signing the documents, that Ms. Elrod provided no money or consideration for the interest she acquired in the Prim Lane property, that she did not willingly or knowingly intend to convey any interest in the Prim Lane property to Ms. Elrod, and that the power of attorney executed contemporaneously with the quitclaim deed created a confidential relationship giving rise to a presumption of undue influence with respect to the quitclaim deed. Ms. Waddle asked the trial court to set aside the quitclaim deed and to award her “any and all damages” caused by Ms. Elrod’s undue influence, including, and in particular, the damages resulting from Ms. Waddle’s inability to convey Regent marketable title to the Prim Lane property. 2

On July 10, 2007, Ms. Elrod filed an answer to the cross-claim, denying all allegations of undue influence and wrongdoing and arguing that the assistance she had provided Ms. Waddle served as consideration for the quitclaim deed.

On April 28, 2009, Regent agreed to dismiss with prejudice its claims against Ms. Waddle and Ms. Elrod. In exchange, Ms. Waddle agreed 3 to return Regent’s $10,000 earnest money, and both Ms. Waddle and Ms. Elrod agreed that Regent would not be responsible for any portion of the court costs 4 Ms. Waddle’s cross-claim against Ms. Elrod remained pending, however, with a jury trial scheduled for June 2 to June 4, 2009.

The day before trial, Ms. Elrod’s attorney, Mr. Gregory Reed, advised Ms. Ha-gan, counsel for Ms. Waddle, that Ms. Elrod was willing to return her one-half interest in the Prim Lane property to avoid going to trial if Ms. Waddle would settle the case and release all other claims against her. Through her attorney, Ms. Waddle agreed to settle the case on the condition that she would not be responsible for any of the court costs. Around 4:00 p.m., Mr. Reed advised Ms. Hagan that Ms. Elrod had agreed to settle the case with Ms. Waddle’s condition. At 4:34 p.m., Ms. Hagan sent the following email to Mr. Reed:

Greg,
This confirms that we have settled this case on the following terms:
*221 Elrod deeds property interest back to Waddle, Both [sic] parties sign full release, Waddle bears no court costs.
Let me know if I have correctly stated our agreement.
Thanks,
Mary Beth

At 5:02 p.m., Mr. Reed responded:

That is the agreement. I understand that you will draft the deed and take a shot at the court’s order. No admission of guilt is to be included.
Greg Reed

The attorneys thereafter advised the trial court of the terms of the agreement. Believing that a settlement had been reached and that a written order memorializing the settlement would be entered later, the trial court cancelled the jury trial and excused prospective jurors. Counsel for Ms. Waddle prepared and forwarded the settlement documents to counsel for Ms. Elrod. Ms. Waddle, understanding that the settlement had returned sole ownership of the Prim Lane property to her, paid all outstanding property taxes. Approximately three weeks later, however, Ms. Elrod advised her attorney that she had changed her mind and no longer wanted to settle the case. When Ms. Elrod refused to sign the settlement documents, Mr. Reed moved to withdraw from further representation, and the trial court granted Mr. Reed’s motion.

On July 13, 2009, Ms. Waddle filed a motion asking the trial court to enforce the settlement agreement. On September 2, 2009, Ms. Elrod filed a response, arguing that the discussions on June 1, 2009, resulted merely in an agreement to agree, with many important material terms unresolved. Alternatively, Ms. Elrod argued that the Statute of Frauds, Tenn.Code Ann. § 29-2-101

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367 S.W.3d 217, 2012 WL 1406451, 2012 Tenn. LEXIS 290, Counsel Stack Legal Research, https://law.counselstack.com/opinion/earline-waddle-v-lorene-b-elrod-tenn-2012.