Geonerco, Inc. v. Grand Ridge Properties IV LLC

191 P.3d 76
CourtCourt of Appeals of Washington
DecidedAugust 26, 2008
Docket36609-6-II
StatusPublished
Cited by8 cases

This text of 191 P.3d 76 (Geonerco, Inc. v. Grand Ridge Properties IV LLC) is published on Counsel Stack Legal Research, covering Court of Appeals of Washington primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Geonerco, Inc. v. Grand Ridge Properties IV LLC, 191 P.3d 76 (Wash. Ct. App. 2008).

Opinion

191 P.3d 76 (2008)

GEONERCO, INC. and/or assigns, n/k/a Riverside Homes, Inc., an Oregon Corporation d/b/a Riverside Homes Vancouver, Respondent,
v.
GRAND RIDGE PROPERTIES IV LLC, an Oregon limited liability company, Appellant.

No. 36609-6-II.

Court of Appeals of Washington, Division 2.

August 26, 2008.

*78 Bradley Alan Maxa, Gordon Thomas Honeywell, Tacoma, WA, for Respondent.

Bradley W. Andersen, Attorney at Law, Phillip Justin Haberthur, Schwabe Williamson & Wyatt, Vancouver, WA, for Appellant.

HUNT, J.

¶ 1 Grand Ridge Properties, Inc. appeals the trial court's grant of Geonerco Inc.'s (dba Riverside Homes) motion for summary judgment to compel specific performance of the parties' Real Estate Purchase and Sales Agreement (REPSA). Grand Ridge argues that the trial court erred in ruling the REPSA enforceable because the REPSA (1) does not reflect a meeting of the minds between the parties, and (2) fails to satisfy the statute of frauds. We affirm.

FACTS

I. BACKGROUND

¶ 2 Grand Ridge Properties acquires large undivided tracts of land to subdivide and to develop into individual "finished" residential lots. "Finishing" the lots includes (1) making necessary improvements to the tract, such as building roads; (2) ensuring compliance with local ordinances; and (3) and obtaining county plat approval. Riverside Homes purchases "finished" residential lots, builds homes on the lots, and sells them to consumers.

A. Preliminary Plat Application

¶ 3 In 2000, Grand Ridge agreed to finish 22 lots on a large tract of land in Clark County and to sell the finished lots to Riverside. On April 28, 2003, the County approved Grand Ridge's preliminary plat application, conditioned on additional road grading, reduction from 22 to 20 lots, adding a storm drain facility, and paved surface improvements, including sidewalks.

B. Purchase and Sale Agreement

¶ 4 Meanwhile, in May 2002, Grand Ridge and Riverside had negotiated and signed a REPSA.[1] The REPSA required Grand Ridge to provide Riverside with "a complete legal description" of the property and to obtain title insurance.

¶ 5 Because the plat had not yet been finally approved and recorded, the REPSA's legal description comprised a metes and bounds description of the entire tract. In apparent anticipation of eventual final plat approval, the REPSA also contained the following clause: "Seller and Buyer . . . authorize Escrow to insert over their signatures the correct legal description of the real Property." Clerk's Papers. (CP) at 142.

C. REPSA Addendum 1

¶ 6 The County's required improvements and other alterations to the project caused the parties to renegotiate the REPSA eight times and to sign a series of addenda. Addendum 1 to the REPSA provided that there were:

[t]wenty-One (21) finished lots in the proposed Plat . . . [and] Seller warrants that the Property to be conveyed is contained with the boundaries of the property described in schedule A of the commitment for title insurance by Chicago Title Insurance Company Order . . . attached hereto as Exhibit C.

CP at 158. Attached Exhibit C, however, was a plat map, not a legal description. Addendum 1 also provided that if the County *79 approved fewer than the agreed-upon 21 lots, then Riverside would pay a reduced price per lot.

D. Final Approval and Recording of Plat

¶ 7 On March 30, 2006, the County approved and recorded a 20-lot plat for the tract. As set out in REPSA Addendum 1, the title insurance documents incorporated the legal description of the subdivision by referring to county records: The "Commitment for Title Insurance" refers to the tract as "Lot 1 through 20, GRAND RIDGE PHASE IV, according to the plat thereof, recorded in Volume 311 of Plats, Page 367, records of Clark County, Washington." CP at 386.

¶ 8 According to Grand Ridge, the parties then negotiated a final addendum, which would have required Riverside to increase each lot's purchase price to reflect unforeseen project costs. But Riverside did not prepare such a final addendum.

¶ 9 Instead, on May 11, 2006, Riverside told Grand Ridge that it was willing and able to close on the existing REPSA. Riverside tendered performance of its obligation to close by directing its escrow agent to prepare the closing documents, including a legal description of the lots recorded with the County, in accordance with Addendum 1 of the REPSA. Grand Ridge, however, refused to convey the subdivision lots to Riverside without a final addendum reflecting the increased purchase price of each lot.

II. PROCEDURE

¶ 10 Riverside sued Grand Ridge for specific performance of the REPSA and moved for summary judgment.

¶ 11 Grand Ridge moved for summary judgment dismissal of Riverside's action. Grand Ridge asserted that the REPSA was unenforceable because (1) in failing to include a legal description of the property, it violated the statute of frauds; (2) it failed to reflect Riverside's verbal promise to increase the purchase price per lot to compensate Grand Ridge for cost overruns; and (3) there was no meeting of the minds between the parties. Grand Ridge also counterclaimed against Riverside for rescission and promissory estoppel.

¶ 12 Riverside moved for partial summary judgment to strike Grand Ridge's affirmative defenses.

¶ 13 The trial court rejected Grand Ridge's arguments and granted Riverside's motion for summary judgment. With respect to the tract's legal description, the court relied on Nishikawa v. United States Eagle High, L.L.C, 138 Wash.App. 841, 158 P.3d 1265 (2007), review denied, 163 Wash.2d 1020, 180 P.3d 1292 (2008) and ruled:

[S]eller and buyer specifically authorized escrow to insert over their signatures the correct legal description of the property. . . . [Because Washington case law allows] the parties to the agreement [to] authorize an independent third party to insert an appropriate legal description, it is a valid delegation of that authority.

CP at 942-43.

¶ 14 The trial court also emphasized that, despite Grand Ridge's claim of oral agreements after signing the REPSA, "the testimony from the depositions does not give rise to an agreement to modify on the face of the integrated contract of the parties." CP at 944. The trial court concluded that: (1) the REPSA contained an adequate legal description, (2) "nowhere in the testimony asserted was there any agreement by [Riverside] that they would modify the payment conditions," and (3) the REPSA was enforceable against Grand Ridge. The trial court ordered specific performance under the REPSA.

¶ 15 Grand Ridge appeals.

ANALYSIS

¶ 16 Grand Ridge argues that the parties did not have a meeting of minds, thus voiding the REPSA, which does not accurately describe the property Riverside promised to purchase from Grand Ridge. Riverside counters that the REPSA shows the parties intended to convey the entire tract, not merely individual platted lots within the tract. We agree with Riverside: The record supports the trial court's ruling that the REPSA was enforceable to convey the entire tract.

*80 I. STANDARD OF REVIEW

¶ 17 When reviewing an order for summary judgment, we perform the same inquiry as the trial court. Hisle v. Todd Pac. Shipyards Corp., 151 Wash.2d 853, 860, 93 P.3d 108 (2004) (citing Kruse v. Hemp,

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Cite This Page — Counsel Stack

Bluebook (online)
191 P.3d 76, Counsel Stack Legal Research, https://law.counselstack.com/opinion/geonerco-inc-v-grand-ridge-properties-iv-llc-washctapp-2008.