Grahn v. Gregory

800 P.2d 320, 146 Utah Adv. Rep. 47, 1990 Utah App. LEXIS 163, 1990 WL 163974
CourtCourt of Appeals of Utah
DecidedOctober 24, 1990
Docket890340-CA
StatusPublished
Cited by13 cases

This text of 800 P.2d 320 (Grahn v. Gregory) is published on Counsel Stack Legal Research, covering Court of Appeals of Utah primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Grahn v. Gregory, 800 P.2d 320, 146 Utah Adv. Rep. 47, 1990 Utah App. LEXIS 163, 1990 WL 163974 (Utah Ct. App. 1990).

Opinion

OPINION

BILLINGS, Judge:

Appellant Herold L. Gregory (“Gregory”), Trustee for and on behalf of the Marital and Family Trusts of the Albert Eccles Family Trust (“Trusts”), appeals from a district court order entered after a four-day trial reforming a land sale contract with appellees, Allen R. and Josephine M. Grahn (“Grahns”), and rescinding the sale of a contiguous parcel of land to appellants Dean and Christi Bradshaw (“Bradshaws”). The Bradshaws also appeal the reformation of the Grahn/Gregory contract. The Grahns cross-appeal, claiming the trial court erred in (1) ordering them to pay for the additional acreage included after reformation, and (2) refusing to award attorney fees to them. We affirm in part and reverse in part.

We recite the facts in a light favorable to the decision of the fact finder. See Security State Bank v. Broadhead, 734 P.2d 469, 470-71 (Utah 1987); Barnes v. Wood, 750 P.2d 1226, 1227 (Utah Ct.App.1988).

This dispute involves a parcel of land, owned by the Trusts, located at 2811 Brookburn Road in Salt Lake County. Before it was subdivided, the property was an estate consisting of a home with private drive access.

In 1984, the Trusts hired a surveyor to subdivide a one-half acre plot to be deeded to Barbara Danielson, a beneficiary of the Trusts. Danielson, with the knowledge of *323 Gregory, instructed the surveyor to locate the oné-half acre parcel in the southeast corner and to stake such a parcel “to the south and east off the road, us[ing] the road as the boundary.” The larger remaining parcel was designated “parcel one” at trial, while the one-half acre parcel was designated “parcel two.”

When the surveyor prepared the legal description of parcel two, he made a four-degree error in describing a turn. Thus, the legal description of parcel two mistakenly included a part of the private drive which the Trusts and the surveyor intended to be included in parcel one.

Danielson decided not to build on parcel two and deeded the property back to the Trusts. Gregory then listed both parcels with a broker. Gregory directed the broker to advise potential buyers the survey stakes placed along the east side of the private driveway formed the boundary between the two parcels and to assure potential buyers the private drive providing access to the existing home was part of parcel one.

The broker showed the property to the Grahns and advised them that either or both of the two parcels could be purchased. The broker removed snow from the survey stakes on the south and east side of the private drive to identify the boundary line between the two parcels and to confirm the private drive was part of parcel one.

The Grahns sought assurances as to the physical boundaries of the parcels on numerous occasions and explicitly stated they wanted the private drive as part of parcel one. The Grahns were not concerned about the acreage of parcel one, but with the physical boundaries of the property as identified by the survey stakes. The broker testified at trial that because of the unique nature of the estate, it would be unusual for the parties to be concerned with the acreage rather than the physical boundaries of the property.

Both the Grahns and Gregory understood and intended at the time the sale was negotiated that the private drive would be included in the sale of parcel one to the Grahns.

After determining to purchase parcel one, the Grahns sought a legal description for the parcel to include in the Earnest Money Agreement. Josephine Grahn telephoned the Gregorys requesting a legal description and was referred to the tax notices. Josephine Grahn then went to the Salt Lake County Recorder’s Office and obtained a legal description. Apparently, the Recorder’s Office had used the Daniel-son deed on parcel two as a basis for the legal description for parcel one. Thus, the Recorder’s Office subtracted the .56 acres in parcel two from the 1.67 acreage of the total property and included an 1.11 acre figure in the legal description of parcel one. As a result of the mistake on the original survey, the Recorder’s legal description of parcel one was not in conformity with the physical staked boundaries of parcel one. Neither the Grahns nor Gregory were aware of the mistaken legal description at this time.

The Earnest Money Agreement recited the 1.11 acre figure and the mistaken legal description, but also provided for an easement for an aesthetic break between the properties which would extend into parcel two “from any point within fifteen (15) feet of the existing drive which separates the two lots.... ”

The Grahns and Gregory closed the sale of parcel one on August 1, 1986. The legal description in the deed for the property did not include the 1.11 acre figure. 1 The Grahns also received a right of first refusal to purchase parcel two.

On September 1, 1986, Gregory entered into an Earnest Money Agreement with the Bradshaws for the purchase of parcel two. The agreement provided the sale would close by September 15, 1986. Also on September 1, Gregory informed the Grahns of *324 his intention to sell the property and extended them the right of first refusal on parcel two in accordance with the option contained in the Grahn/Gregory Earnest Money Agreement on parcel one. Under the Earnest Money Agreement, the Grahns had seven days to exercise the option. In the event the Grahns did not exercise the option, the agreement provided that Gregory could sell parcel two within 90 days under the same terms and conditions offered to the Grahns under the option. If, however, those terms changed, Gregory was required to offer the Grahns another option term.

The Grahns did not exercise their right of first refusal and, when the option expired, told Gregory to proceed with the sale of parcel two to the Bradshaws.

On October 11, 1986, Dean Bradshaw discovered the private drive was apparently located within the legal description of parcel two. The Bradshaws informed Gregory. Gregory contacted the surveyor. The surveyor admitted his mistake and completed another survey which correctly placed the private drive within parcel one and yet still provided one-half acre for parcel two in accordance with his original instructions. However, Gregory rejected this survey because the Bradshaws could not construct the house they had designed on the redrawn parcel. The surveyor was then instructed to draft a new survey without reference to the private drive as the boundary between the parcels.

Prior to closing the sale of parcel two, Gregory gave the Bradshaws the opportunity to avoid their agreement, but they refused. On November 20, 1986, Gregory and the Bradshaws closed the sale of parcel two using the original mistaken legal description. At that time, Gregory and the Bradshaws entered into another agreement which provided: “In the event that buyer cannot obtain the full .56 acre according to the legal description, seller agrees to nullify sale and refund purchase price.”

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Bluebook (online)
800 P.2d 320, 146 Utah Adv. Rep. 47, 1990 Utah App. LEXIS 163, 1990 WL 163974, Counsel Stack Legal Research, https://law.counselstack.com/opinion/grahn-v-gregory-utahctapp-1990.