Gillespie v. Mountain Park Estates, L.L.C.

56 P.3d 1277, 138 Idaho 27, 2002 Ida. LEXIS 154
CourtIdaho Supreme Court
DecidedOctober 10, 2002
Docket27067
StatusPublished
Cited by16 cases

This text of 56 P.3d 1277 (Gillespie v. Mountain Park Estates, L.L.C.) is published on Counsel Stack Legal Research, covering Idaho Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Gillespie v. Mountain Park Estates, L.L.C., 56 P.3d 1277, 138 Idaho 27, 2002 Ida. LEXIS 154 (Idaho 2002).

Opinion

TROUT, Chief Justice.

I.

NATURE OF THE CASE

This is an appeal from a court trial in which the trial judge found in favor of plaintiffs Todd and Corrine Gillespie (“Gillespies”) and awarded them $5,000 plus attorney’s fees against defendants Mountain Park Estates, L.L.C., Darris A. Ellis, Clayton Ellis, and Ellis Construction (“Sellers”) based on promissory estoppel.

II.

FACTUAL AND PROCEDURAL HISTORY

In 1997, Gillespies met with Darris Ellis, (“Ellis”) who is a homebuilder in the Pocatello, Idaho area to discuss the possibility of purchasing a home. After looking over several vacant lots, Ellis suggested that Gillespies buy a lot at that time and build a home at a later date because he suggested the lots were in high demand and would not be available very long.

Gillespies decided to purchase a vacant lot known as lot 21, block 4 of the Mountain Park Estates subdivision in Chubbuek, Idaho. Gillespies entered into a Real Estate Purchase and Sale Agreement on July 31, 1997. The purchase agreement was signed by “Darris A. Ellis” as the seller. The promissory note signed on August 1, 1997, listed “Mountain Park Estates, LLC” as the promisee and it contained a $5,000 “lot release fee” if Ellis Construction were not hired to build the house on the lot.

Gillespies claimed they were not aware of the “lot release fee” and testified that Ellis again orally told them that the lot was in high demand and that he or his development company would buy the lot back without penalty should Gillespies decide not to build a house on the lot. Gillespies testified that based on these assurances, they closed the deal on the lot purchase on August 1, 1997, *29 which included signing the promissory note that referenced the $5,000 penalty.

After about a year had passed, Gillespies decided not to build a home on the lot and requested that Ellis repurchase it. Ellis told Gillespies that he and his business partner did not have the assets to buy back the lot, so Gillespies sought out a real estate agent to help them sell the lot. The Gillespies sold the lot, and at the request of Ellis, the escrow agent withheld $5,000 from the proceeds of the sale.

Gillespies filed suit against the Sellers on July 9, 1998, alleging three counts of unlawful conduct. Sellers filed a motion for summary judgment on all three counts and the trial judge granted the motion regarding the unlawful contract penalty and antitrust claims, but denied the motion with respect to the first count, finding that there were disputed issues of material fact regarding that claim.

The case was tried on July 19,2000, and on September 8, 2000, the trial judge issued Findings of Fact, Conclusion of Law, and Order, which found that Gillespies suffered a substantial detriment in reliance on Ellis’ promise to repurchase the lot and that such reliance was reasonable. The trial judge therefore awarded Gillespies $5,000 based on promissory estoppel for the money withheld at closing, and attorney’s fees based upon a determination that this was a commercial transaction under Idaho Code § 12-120(3). Sellers filed a timely appeal.

III.

STANDARD OF REVIEW

The standard of review of a trial court’s findings of fact is set forth in Idaho Rule of Civil Procedure 52(a). Williamson v. City of McCall, 135 Idaho 452, 455, 19 P.3d 766, 769 (2001) (citing I.R.C.P. 52(a)). I.R.C.P. 52(a) provides in pertinent part:

In all actions tried upon the facts without a jury ... the court shall find the facts specifically and state separately its conclusions of law thereon and direct the entry of the appropriate judgment. Findings of fact shall not be set aside unless clearly erroneous. In application of this principle regard shall be given to the special opportunity of the trial court to judge the credibility of those witnesses that appear before it.

Id. (quoting I.R.C.P. 52(a)). “In determining whether a finding is clearly erroneous this Court does not weigh the evidence as the district court did. The Court inquires whether the findings of fact are supported by substantial and competent evidence.” Id. (citation omitted). “This Court will not substitute its view of the facts for the view of the district judge.” Id. (citation omitted). “Evidence is regarded as substantial if a reasonable trier of fact would accept it and rely upon it in determining whether a disputed point of fact had been proven.” Id.

“[T]his Court exercises free review over the district court’s conclusions of law.” Id. (citation omitted).

IV.

DISCUSSION

A. Promissory Estoppel was Raised by the Pleadings

The elements of promissory estoppel are as follows: “ ‘(1) the detriment suffered in reliance was substantial in an economic sense; (2) substantial loss to the promisee acting in reliance was or should have been foreseeable by the promisor; and (3) the promisee must have acted reasonably in justifiable reliance on the promise as made.’” Mitchell v. Bingham Memorial Hosp., 130 Idaho 420, 942 P.2d 544 (1997) (quoting Black Canyon Racquetball Club, Inc. v. Idaho First Nat’l Bank, 119 Idaho 171, 178 n. 2, 804 P.2d 900, 907 n. 2 (1991)) (quoting Mohr v. Shultz, 86 Idaho 531, 540, 388 P.2d 1002, 1008 (1964))).

Sellers assert that this case, which went to trial on Count I, was understood by the parties to be a claim of fraud in the inducement. At trial, Sellers objected to consideration of the promissory estoppel issue, asserting that the complaint only alleged fraud in the inducement. The trial judge indicated that he would allow a continuance for Sellers to prepare for the promissory *30 estoppel claim, but Sellers’ attorney stated: “I don’t feel that it would be helpful to seek a continuance, although I would note a continuing objection to trying matters beyond the pleadings.”

“Generally, a claim for relief need contain only a ‘short and plain statement of the claim showing that the pleader is entitled to relief____’” Whitlock v. Haney Seed Co., 114 Idaho 628, 759 P.2d 919, 925 (Ct.App.1988) (citing I.R.C.P. 8(a)(2)). “A party’s pleadings should be liberally construed to secure a ‘just, speedy and inexpensive’ resolution of the case.” Christensen v. Rice, 114 Idaho 929, 931, 763 P.2d 302, 304 (Ct.App.1988) (citing I.R.C.P. 1(a)); Deaton v. Leibrock, 114 Idaho 614, 759 P.2d 905 (Ct.App.

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Cite This Page — Counsel Stack

Bluebook (online)
56 P.3d 1277, 138 Idaho 27, 2002 Ida. LEXIS 154, Counsel Stack Legal Research, https://law.counselstack.com/opinion/gillespie-v-mountain-park-estates-llc-idaho-2002.