Greggory D. Sears v. Addam G. Clark

Court of Appeals of Kentucky·Decided August 17, 2023·No. 2022 CA 000852·Unknown

Opinion

RENDERED: AUGUST 18, 2023; 10:00 A.M.

NOT TO BE PUBLISHED

Commonwealth of Kentucky

Court of Appeals

NO. 2022-CA-0852-MR

GREGGORY D. SEARS AND GENEVA E. SEARS APPELLANTS

APPEAL FROM CHRISTIAN CIRCUIT COURT v. HONORABLE JOHN L. ATKINS, JUDGE ACTION NO. 22-CI-00183

ADDAM G. CLARK APPELLEE

OPINION

AFFIRMING

** ** ** ** **

BEFORE: CALDWELL, DIXON, AND ECKERLE, JUDGES. DIXON, JUDGE: Greggory D. Sears and Geneva E. Sears appeal from the order granting judgment on the pleadings in favor of Addam G. Clark, entered by the Christian Circuit Court on May 17, 2022, and the order denying their motion to vacate or set aside, entered on June 22, 2022. Following a careful review of the record, briefs, and law, we affirm.

BACKGROUND FACTS AND PROCEDURAL HISTORY In February 2020, the Searses purchased two lots totaling 21 acres in Oak Grove for $281,820. They also owned a four-acre tract in Oak Grove through their business, Wolf Lick Properties, LLC. They used realtor Debra Butts to list these properties for sale for $289,900 and $200,000, respectively, both with an address of “0 Pembroke Oak Grove Road.”

In February 2022, Clark made a written offer to buy “All that tract of land known as: 0 Oak Grove Pembroke Road, Oak Grove, Tennessee 42262,” and further described as “Lots 1 and 2 Pembroke Oak Grove Road” for $210,000. The Searses counteroffered with the exception that “Anywhere TN is referenced shall be replaced with Kentucky.” Clark accepted the counteroffer.

Clark and the Searses entered a Lot/Land Purchase and Sale Agreement which referenced instrument number 162000002717. The instrument number matches the map number/account number listed with the Christian County, Kentucky, Property Valuation Administrator (PVA) for the 21-acre parcel.

Unfortunately, realtor Butts and the Searses believed Clark’s offer concerned the purchase of the four-acre tract rather than the lots totaling 21 acres. Accordingly, the Searses did not close.

On March 16, 2022, Clark sued the Searses for specific performance and damages. Clark served interrogatories, requests for production of documents,

and requests for admission on the Searses, which they never answered. The Searses were served via civil summonses on March 21, 2022, and answered on April 19, 2022, pleading the affirmative defenses of failure to state a claim upon which relief may be granted, statute of frauds, mistake, no meeting of the minds, and failure to join indispensable parties.

On April 22, 2022, Clark moved the trial court for judgment on the pleadings. After the matter was fully briefed, including the filing of Butts’ affidavit, a hearing was held on May 11, 2022. On May 17, 2022, the trial court entered its order granting the motion for judgment on the pleadings and ordering the Searses to convey Lots 1 and 2 to Clark. The Searses moved the trial court to vacate or set aside the judgment, dismiss the action, and for leave to file a counterclaim. Their motion was denied, and this appeal followed.

STANDARD OF REVIEW

Under CR1 12.03, “any party to a lawsuit may move for a judgment on the pleadings.” City of Pioneer Vill. v. Bullitt Cnty., 104 S.W.3d 757, 759 (Ky. 2003). A judgment on the pleadings “should be granted if it appears beyond doubt that the nonmoving party cannot prove any set of facts that would entitle him/her to relief.” Id. The trial court is “not required to make any factual determination; rather, the question is purely a matter of law.” James v. Wilson, 95 S.W.3d 875,

1 Kentucky Rules of Civil Procedure.

883-84 (Ky. App. 2002). We review a judgment on the pleadings de novo. Schultz v. Gen. Elec. Healthcare Fin. Servs., Inc., 360 S.W.3d 171, 177 (Ky. 2012).

Even so, CR 12.03 requires that a motion in which matters outside the pleadings are considered be treated as a motion for summary judgment. Craft v. Simmons, 777 S.W.2d 618 (Ky. App. 1989). See Cabinet for Human Res. v. Women’s Health Servs., Inc., 878 S.W.2d 806 (Ky. App. 1994) (motion to dismiss treated as motion for summary judgment because the court considered an affidavit in support of the motion). In the case herein, affidavits and other documents beyond public records were provided to the trial court.

Summary judgment is appropriate “if the pleadings, depositions, answers to interrogatories, stipulations, and admissions on file, together with the affidavits, if any, show that there is no genuine issue as to any material fact and that the moving party is entitled to a judgment as a matter of law.” CR 56.03. “[T]he proper function of summary judgment is to terminate litigation when, as a matter of law, it appears that it would be impossible for the respondent to produce evidence at the trial warranting a judgment in his favor.” Steelvest, Inc. v. Scansteel Serv. Ctr., Inc., 807 S.W.2d 476, 480 (Ky. 1991).

An appellate court’s role in reviewing an award of judgment based solely on pleadings is to determine whether the trial court erred in finding no genuine issue of material fact exists, and the moving party was entitled to

judgment as a matter of law. Scifres v. Kraft, 916 S.W.2d 779, 781 (Ky. App. 1996). A grant of such summary judgment is reviewed de novo because factual findings are not at issue. Pinkston v. Audubon Area Cmty. Servs., Inc., 210 S.W.3d 188, 189 (Ky. App. 2006) (citing Blevins v. Moran, 12 S.W.3d 698 (Ky. App. 2000)).

Here, because the trial court essentially granted summary judgment to Clark, we review the facts in a light most favorable to the Searses and resolve all doubts in their favor. Applying the Steelvest standard, and based on the record, we agree with the trial court that no genuine issue of material fact exists. Therefore, we conclude that a judgment on the pleadings was proper.

LEGAL ANALYSIS

On appeal, the Searses first argue that the trial court improperly granted Clark’s motion because there were genuine issues of material fact. The “issues” they identify are: (1) their belief that they were selling the four-acre tract rather than the 21 acres, and (2) the sale price was well below their mortgage payoff, “which would make their acceptance of it, and agreement to it nonsensical and outright absurd.”

Beginning with the Searses’ first issue of error – namely, that they mistakenly believed Addams’ Lot/Land Purchase and Sale Agreement related to the smaller tract – this argument is unavailing. Under the rules of contract

interpretation, the intentions of the parties are to be discerned from the four corners of the document, and where there is no ambiguity, extrinsic evidence should not be considered. Cantrell Supply, Inc. v. Liberty Mut. Ins. Co., 94 S.W.3d 381, 385 (Ky. App. 2002). “[A]bsent fraud in the inducement, a written agreement duly executed by the party to be held, who had an opportunity to read it, will be enforced according to its terms.” Conseco Fin. Servicing Corp. v. Wilder, 47 S.W.3d 335, 341 (Ky. App. 2001) (citing Cline v. Allis-Chalmers Corp., 690 S.W.2d 764 (Ky. App. 1985)).

In the case herein, the agreement unambiguously identifies an instrument number and describes the land as “Lots 1 and 2.” The instrument number matches the PVA’s report clearly identifying the 21 acres. Moreover, Lots 1 and 2 on the division plat also depict the 21 acres, while the other four acres the Searses own – through their LLC – are Lots 4 and 5. Furthermore, there is no allegation of fraud in this case but, rather, only a unilateral mistake. Unfortunately for the Searses, it is well-settled that “unilateral mistake is not ground for reforming a written instrument[.]” Cadleway Props., Inc. v. Bayview Loan Servicing, LLC, 338 S.W.3d 280, 287 (Ky. App. 2010). Additionally, parties are free to enter contracts even if they make a bad bargain. See Conseco Fin. Servicing Corp., 47 S.W.3d at 341. Thus, though there may be “issues,” there are no genuine issues of material fact that preclude a judgment in Clark’s favor.

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