Gandy v. Eschler

862 P.2d 1116, 261 Mont. 355, 50 State Rptr. 1357, 1993 Mont. LEXIS 321
CourtMontana Supreme Court
DecidedNovember 2, 1993
Docket93-104
StatusPublished
Cited by4 cases

This text of 862 P.2d 1116 (Gandy v. Eschler) is published on Counsel Stack Legal Research, covering Montana Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Gandy v. Eschler, 862 P.2d 1116, 261 Mont. 355, 50 State Rptr. 1357, 1993 Mont. LEXIS 321 (Mo. 1993).

Opinion

JUSTICE HUNT

delivered the Opinion of the Court.

Appellants Ray and Norma Gandy appeal from an order of the Thirteenth Judicial District Court, Yellowstone County, granting partial summary judgment to respondents Janet, Lori, and Burke Eschler, personal representatives of the Estate of James P. Eschler. The order denied Gandys’ claim that the Eschlers specifically perform on a contract for deed for real property located in Yellowstone County. Gandys also contest the amount of award for attorney fees. Eschlers cross-appeal on the award of attorney fees.

We affirm.

Appellants present one issue on appeal which we rephrase as follows:

1. Did the District Court err in granting partial summary judgment when it ruled that Gandys were not entitled to specific performance?

Eschlers cross-appeal with the following issue:

2. Did the District Court err in granting attorney fees to Gandys when they did not prevail on the motion for partial summary judgment?

Appellants also appeal the amount of attorney fees.

On December 22, 1977, William and Sally Fried entered into a contract for deed with Richard and Jeannie Martin for rental property located in Yellowstone County. The parties placed the contract in escrow.

On September 29,1983, Martins sold the same property to James and Janet Eschler using a contract for deed. The purchase price of the contract was $315,000, which included a $50,000 down payment. On the date of execution, Martins placed a warranty deed in escrow. Eschlers purchased subject to the December 22, 1977, underlying contract, but did not assume the contract.

On October 4,1984, Martins assigned their sellers’ interest in the 1983 contract to a party known as Avrill. On December 12,1985, Avrill assigned his seller’s interest to Gandys for $80,000.

*358 In June 1987, Eschlers notified Gandys that no further monthly payments would be made upon the contract. At that time, Eschlers had made all payments when due. On July 6,1987, Eschlers notified Gandys that they would furnish a quitclaim deed in return for a release from further obligation.

From August 1987, until March 1988, the parties attempted to negotiate a resolution to the problem. On March 30,1988, the parties entered into a written agreement wherein Eschlers agreed to pay $20,000, with interest, to Gandys for satisfaction of Gandys’ claim for the balance due and owing under the September 29,1983, agreement. At the time the parties entered into the second agreement, Frieds gave both parties notice of default and repossessed the real estate in December 1987.

Eschlers did not make timely payments and defaulted on the March 30,1988, agreement. On April 24,1991, Gandys initiated this action under the March 30,1988, agreement seeking the underlying contract price of $258,640, plus interest, or in the alternative, Gandys sought $20,000 from the breach of the March 30,1988, contract. On May 27,1992, Eschlers filed a motion for partial summary judgment on the basis that Gandys’ claim for specific performance failed as a matter of law. On August 6,1992, the District Court granted Eschlers’ motion for partial summary judgment. On August 17,1992, Eschlers filed an offer of judgment for $20,000, which included all costs incurred at that time. Gandys did not respond to the offer, but instead filed a motion for reconsideration. On December 23, 1992, Eschlers filed a motion for entry of judgment on the balance remaining on the 1988 contract, which the District Court granted. The court entered judgment in favor of Gandys for $15,757.53 and $1,200.00 in attorney fees. Gandys appeal the judgment of the District Court.

I.

Did the District Court err in granting partial summary judgment when it ruled that Gandys were not entitled to specific performance?

When determining whether a district court erred on a motion for summary judgment, our standard of review is the same as that of the district court. It is proper for the district court to grant summary judgment when there are no genuine issues of material fact and the moving party is entitled to judgment as a matter of law. Rule 56(c), M.R.Civ.P. The court may examine the pleadings, depositions, answers to interrogatories, and admissions in the record to establish facts to determine if the applicable law warrants the granting of *359 summary judgment. Kondelik v. First Fidelity (Mont. 1993), 857 P.2d 687, 692, 50 St. Rep. 874, 876-77.

Gandys contend that the District Court should have allowed them to sue for the balance of the purchase price of the underlying contract because it was Eschlers who defaulted and prevented Gandys from vesting Eschlers with title. In essence, Gandys argue that persons who prevent the performance of the terms of the contract cannot avail themselves of the nonperformance which their actions have prevented.

We have stated that:

A request for a money judgment for the balance of the purchase price which may be awarded in an action at law has been deemed identical to a decree of specific performance, which requires the buyer to pay the balance of the purchase price. That being so, once the buyers have paid the money judgment, the seller must convey title to the property. Such would be required if the decree were of specific performance; and since the money judgment has been deemed identical to a decree for specific performance, the money judgment carries with it the same requirement that the seller perform. [Citation omitted].

Glacier Campground v. Wild Rivers, Inc. (1979), 184 Mont. 543, 560-61, 597 P.2d 689, 699.

To obtain specific performance, both parties must be able to perform their obligations of the contract. Section 27-1-414, MCA. Here, for Gandys to succeed on their claim for specific performance they must be able to convey title of the Yellowstone County land to Eschlers.

Gandys maintain that they are not required to perform their end of the 1983 contract because Paragraph 4 of the March 30,1988, contract releases and discharges them from performing any obligation resulting from the September 29,1983, agreement. Gandys also contend that Paragraph 5 of the March 30,1988, contract allows them to sue for the full balance of the purchase price of the underlying contract.

Paragraph 4 states:

ESCHLERS hereby release and forever discharge GANDYS from the performance or non-performance of any duties or obligations, as well as any and all other liabilities resulting from, arising out of, or in any way associated with said agreement dated September 29,1983.

*360 When determining the intention of the parties, we look to the contract as a whole to determine its meaning and not be bound by a single provision or expression. St. Paul Fire & Marine Ins. Co. v. Cumiskey (1983), 204 Mont.

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Bluebook (online)
862 P.2d 1116, 261 Mont. 355, 50 State Rptr. 1357, 1993 Mont. LEXIS 321, Counsel Stack Legal Research, https://law.counselstack.com/opinion/gandy-v-eschler-mont-1993.