Gregory v. Stallings

468 P.3d 253, 167 Idaho 123
CourtIdaho Supreme Court
DecidedJuly 15, 2020
Docket46818
StatusPublished
Cited by7 cases

This text of 468 P.3d 253 (Gregory v. Stallings) 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
Gregory v. Stallings, 468 P.3d 253, 167 Idaho 123 (Idaho 2020).

Opinion

IN THE SUPREME COURT OF THE STATE OF IDAHO Docket No. 46818 JONATHON CLYDE GREGORY, ) ) Plaintiff-Appellant, ) Boise, May 2020 Term ) v. ) Opinion Filed: July 15, 2020 RICHARD R. STALLINGS, an individual, ) and EILEEN STALLINGS, an individual, ) Melanie Gagnepain, Clerk ) Defendants-Respondents. ) )

Appeal from the District Court of the Seventh Judicial District, State of Idaho, Bingham County. Darren B. Simpson, District Judge.

The district court’s decision is affirmed.

Parmenter Rivera, LLP, Blackfoot, for Appellant. Brianna N. Rosier argued.

Baker & Harris, Blackfoot, for Respondents. Jared M. Harris argued.

_____________________________

BURDICK, Chief Justice. Jon Gregory appeals a district court’s award of summary judgment in favor of Richard and Eileen Stallings (collectively, “the Stallings”) in a breach-of-contract action stemming from the parties’ oral agreement to develop real property in Rexburg, Idaho. The property was sold in December 2012. Gregory—believing the Stallings wrongfully withheld a portion of the proceeds— filed a complaint in September 2017. The district court granted the Stallings’ subsequent motion for summary judgment, concluding that Gregory’s cause of action was barred by Idaho Code section 5-217’s four-year statute of limitations. Gregory timely appeals. I. FACTUAL AND PROCEDURAL BACKGROUND This case concerns four-acres of land in Rexburg, Idaho (the Property). At some point prior to 2007, Gregory purchased two acres of the Property for $205,000 (Parcel A) with the plan to develop it into a student-housing complex. Richard Stallings contacted Gregory around September 2007 and expressed interest in purchasing the other two acres (Parcel B) and “going in as partners” or “joint venturers” in the Property’s development. The Stallings purchased Parcel B on September

1 27, 2007. The parties’ oral agreement was to develop the Property and share profits equally after their respective contributions were repaid. In February 2009, Gregory conveyed his interest in Parcel A to Pioneer Point, LLC, an entity tasked with developing the property by constructing the initial infrastructure and buildings. In 2009, the Stallings and Pioneer Point, LLC, entered into a construction loan contract with Century Mortgage Company to finance the development and signed a promissory note for $945,000, to be repaid within six-months with the option to extend for an additional six months. The loan was comprised of contributions from many investors. According to Gregory, he sold a separate parcel and invested the proceeds (around $292,000) into the development to keep the project viable. At some point after the housing-market crisis of 2008, the parties decided to sell the property before it was fully developed to recoup their losses. On May 2, 2012, Pioneer Point, LLC, transferred Parcel A to the Stallings, leaving the Stallings with sole ownership of the entire Property. The parties secured a buyer and anticipated that the expected closing transaction would pay off the investors and then pay proceeds to Gregory and the Stallings in two installments. The first installment would take place on the date of closing with the second installment being paid out at some point thereafter. According to Gregory, he and the Stallings “had originally agreed to divide the anticipated balance of the proceeds of $433,000” equally, “each of them receiving $216,758.86.” Regardless of the amount of proceeds, Gregory alleged that “[t]he balance of the proceeds from the sale of the property was to be divided between [him and the Stallings].” On November 14, 2012, Richard Stallings emailed Garrett Sandow, an attorney who acted as a liaison between Gregory and Richard Stallings. In the email, Richard Stallings offered a proposed division for the proceeds from the Property’s sale, explaining that he had invested $256,000 in the Property. Once the property was sold, Stallings stated that he “plan[ned] on taking [$106,000 from the ‘first draw’ and $150,000 from the ‘second draw’] and then giving the balance of each draw to Garret[t] Sandow for Johns [sic] dispersal [sic].” On December 21, 2012, the Stallings sold the Property, along with its improvements, to Rockwell Court Limited Partnership for a total sum of $1,086,438.89. As part of the settlement, the construction-loan investors were repaid. The final settlement statement indicated that around $94,000 in cash was paid to the Stallings, but that $300,000 was withheld. Gregory did not receive any payment from the Stallings from this initial payout. Around a week later, on December 27, 2012, Stallings sent Sandow a statement indicating that the second payoff received from the sale of the Property was $300,000. In that Statement, 2 Stallings allocated $144,517.72 of the payment to himself, and $155,482.28 to Gregory. The statement indicated that these payments would be disbursed in the “Next Pay out end of January or first of February 2013.” Sandow relayed this proposal to Gregory, who accepted it. The end of January and the first of February passed and Gregory did not receive any payment from the Stallings. On September 9, 2013, Tim Cobb, an individual also involved in the development, forwarded Sandow an August 27, 2013, email he had received from Richard Stallings. The email detailed Richard Stallings’s belief that many of the development’s shortcomings were Gregory’s fault. The email concluded: “I feel in order for me to get a return on my investment there is no money owed to John from the current sell.” On September 2, 2017, nearly four years after receiving that email, Gregory filed a verified complaint. He pleaded (1) breach of contract, and (2) breach of implied contract, arguing that he entered into an “express” or “implied agreement” with the Stallings “whereby [Gregory] agreed to pay for one half of the land necessary to develop and to otherwise achieve improvement of [the Property].” Gregory alleged that the Stallings breached the agreement by “failing and refusing to pay or reimburse [him] for his contributions and investments, both of time and money.” Gregory also pleaded (3) quantum meruit/quasi contract, arguing that he provided financial resources and labor to improve the Property at the Stallings’ request and to their benefit without compensation. The Stallings filed a motion for summary judgment arguing that Gregory’s claim was barred by the statute of limitations and the statute of frauds. They highlighted that Gregory had failed to produce a written contract and further argued that any implied or quasi contract was barred by the statute of limitations for oral contracts under Idaho Code section 5-217. In response, Gregory argued that, for purposes of his lawsuit, no breach occurred until he became aware of Richard Stallings’ email on September 9, 2013. Gregory also asserted that equitable estoppel should bar the Stallings from asserting the statute of limitations as a defense. Gregory argued that the Stallings falsely represented that they would pay him from the sale, and that he relied on their representations to his detriment. The district court determined that the statute of frauds did not apply, but granted the Stallings’ motion on the statute-of-limitations grounds. The district court explained that the breach of the implied contract would have occurred when Stallings sold the property, received the funds, and did not pay Gregory the portion he believed he was due. As that was four years and eight months prior to filing the complaint, Gregory’s claim was barred by Idaho Code section 5-217.

3 Gregory moved for reconsideration, arguing that the district court’s decision was based on the incorrect premise that the sale of the property occurred in one complete transaction on December 21, 2012.

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Bluebook (online)
468 P.3d 253, 167 Idaho 123, Counsel Stack Legal Research, https://law.counselstack.com/opinion/gregory-v-stallings-idaho-2020.