Halstead v. Murray

547 A.2d 202, 130 N.H. 560, 1988 N.H. LEXIS 55
CourtSupreme Court of New Hampshire
DecidedJuly 8, 1988
DocketNo. 86-296
StatusPublished
Cited by13 cases

This text of 547 A.2d 202 (Halstead v. Murray) is published on Counsel Stack Legal Research, covering Supreme Court of New Hampshire primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Halstead v. Murray, 547 A.2d 202, 130 N.H. 560, 1988 N.H. LEXIS 55 (N.H. 1988).

Opinions

Johnson, J.

The plaintiff, Kirk Halstead, appeals from the denial of his motion to enforce settlement of an agreement entered into between his attorney and the attorney representing the defendant Stewart Murray. The Superior Court (Wyman, J.) approved the report of the Master (Charles T. Gallagher, Esq.) recommending that the agreement be found unenforceable because it failed to comply with the New Hampshire Statute of Frauds. We reverse and remand.

The parties own abutting property on Lake Winnipesaukee in Moultonborough. In April, 1984, the plaintiff filed petitions for declaratory and injunctive relief in the superior court seeking to enjoin Murray from constructing a building which Halstead alleged was in violation of the Moultonborough setback ordinance. The Town of Moultonborough was joined as a defendant. After the litigation had commenced, the individual parties engaged in settlement negotiations through their respective counsel.

On November 5, 1985, defendant’s counsel, Robert Schroeder, wrote a letter to the plaintiff’s attorney, Philip T. McLaughlin, stating:

“I have spoken with my client concerning the matters set forth in your letter of October 29 last.
Mr. Murray will accept $115,000.00 for the purchase of his lot. This offer will remain open until January 1, 1986 and thereafter will not be renewed at this figure. The figure is not open to negotiation and is on a ‘take it or leave it’ basis.”

Following this letter, defendant’s counsel wrote another letter to plaintiff’s counsel on December 10, 1985, stating:

“Mr. Murray stands firm as to his offer of $115,000.00. The worst that can happen to my client is that he will be forced to remove part of the foundation although this is by no means certain. He also intends to build regardless of the outcome of the litigation. I should also point out that my [562]*562client’s offer expires at the end of the yeár and he is firm about this.
Perhaps Mr. Halstead should ‘bite the bullet’ and purchase the land at my client’s asking price.”

Each of these letters indicated on its face that a copy was sent to Murray. Shortly after receipt of the second letter, on December 19, 1985, the attorney for the plaintiff, Halstead, wrote a letter to counsel for Murray which stated: .

“Mr. Murray’s $115,000 offer is accepted.
I suggest you give me a Purchase & Sale Agreement signed by Mr. Murray, $115,000; closing on or before February 1, 1986; subject to title search; usual provisions; no financing contingencies.
On receipt I will Federal Express the Purchase & Sale Agreement to Mr. Halstead in New Jersey for his signature.”

It is not contested that, upon Murray’s direction, Murray’s counsel prepared and forwarded to Halstead’s attorney a purchase and sale agreement that called for the sale of the Murray property to Halstead and stated that “[t]he purchase price is $115,000.” The contract was then forwarded to Halstead by his counsel, and Halstead executed the agreement as presented. Murray, however, had not signed the purchase and sale contract prior to its being forwarded to Halstead’s counsel.

On February 3, 1986, Murray’s counsel notified Halstead’s counsel that Murray had decided not to go forward with the agreed sale. Shortly thereafter, Murray’s counsel informed Halstead’s counsel that Murray would consummate the sale if Halstead would pay the sum of $130,000 for the real estate. On February 13, 1986, Halstead filed a motion to enforce settlement with the superior court setting forth facts which were undisputed. Murray’s counsel filed an objection, contending that the Statute of Frauds (RSA 506:1) had not been satisfied by the writings set forth above. However, Murray in his objection, offered to reimburse Halstead for “costs of title examination and other costs in reliance upon a proposed settlement.” After a brief hearing before the master, in which the above correspondence and a copy of the purchase and sale agreement were entered into evidence, the master concluded that there had not been compliance with the statute and that he “must reluctantly recommend” that Halstead’s motion be denied. This appeal followed.

[563]*563We must decide, on appeal, whether our Statute of Frauds renders the settlement agreement between Murray and Halstead unenforceable. The New Hampshire version of the Statute of Frauds relating to the sale of land is contained in RSA 506:1. The statute reads as follows:

“Sale of Land. No action shall be maintained upon a contract for the sale of land unless the agreement upon which it is brought, or some memorandum thereof, is in writing and signed by the party to be charged, or by some person authorized by him in writing.”

The issue before us is whether, under the facts of this case, RSA 506:1 prevents Halstead from enforcing the written agreement that was entered into between his counsel and Murray’s counsel in order to bring the pending litigation to an end.

We begin our analysis by determining whether there was an enforceable contract for the sale of land but for RSA 506:1. This court has indicated that an exchange of correspondence, such as that which occurred in this case, may create a binding contract for the sale of land where the necessary elements for such a contract have been set forth. Estate of Younge v. Huysmans, 127 N. H. 461, 465-66, 506 A.2d 282, 284-85 (1965). Moreover, as the following colloquy from the transcript of the master’s hearing reveals, counsel for Murray did not dispute the fact that the contract would be binding provided the requirements of the Statute of Frauds had been met.

“THE COURT: The only defense is the statute of frauds[?]
MR. SCHROEDER: Yes, Your Honor, but it’s a weak defense.
THE COURT: Well, it must be considered.”

It is thus undisputed that the settlement agreement was a contract for the sale of land. The New Hampshire statute, on its face, would therefore require that Murray either have signed an agreement for the sale of the land in question or given written authorization to his attorney to contract in writing for the sale of the land. As Murray did neither of these, we must consider whether this case should fall within an exception to the Statute of Frauds.

The original Statute of Frauds has an interesting history which is worthy of a brief review. The English Parliament first enacted the statute in 1677 to prevent “‘many fraudulent practices, which are commonly endeavored to be upheld by perjury and subornation of perjury.’” Note, The Doctrine of Equitable Estoppel and the [564]*564Statute of Frauds, 66 Mich. L. Rev. 170 (1967). At that time, under English trial practice, parties to a lawsuit were deemed to be incompetent witnesses and hence barred from testifying. The statute thus was aimed at making virtually all contracts of significance unenforceable unless they had been reduced to writing. The statute, of course, sometimes produced harsh results, and the English courts soon developed exceptions, such as the rule that partial performance of the contract took the agreement out of the requirements of the statute.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Roy, et al. v. NH DOC, et al.
2011 DNH 177 (D. New Hampshire, 2011)
Ogden v. Griffith
236 P.3d 1249 (Idaho Supreme Court, 2010)
Poland v. Twomey
937 A.2d 934 (Supreme Court of New Hampshire, 2007)
G2003B, LLC v. Town of Weare
903 A.2d 1007 (Supreme Court of New Hampshire, 2006)
Kilty v. Worth Development Corp.
184 F. App'x 17 (First Circuit, 2006)
Byblos Corp. v. Salem Farm Realty Trust
692 A.2d 514 (Supreme Court of New Hampshire, 1997)
Clark v. Mitchell
937 F. Supp. 110 (D. New Hampshire, 1996)
Tsiatsios v. Tsiatsios
663 A.2d 1335 (Supreme Court of New Hampshire, 1995)
Scarfo v. Cabletron Systems, Inc.
153 F.R.D. 9 (D. New Hampshire, 1994)
Bock v. Lundstrom
573 A.2d 882 (Supreme Court of New Hampshire, 1990)
Cass v. Ray
556 A.2d 1180 (Supreme Court of New Hampshire, 1989)
Bossi v. Bossi
551 A.2d 978 (Supreme Court of New Hampshire, 1988)

Cite This Page — Counsel Stack

Bluebook (online)
547 A.2d 202, 130 N.H. 560, 1988 N.H. LEXIS 55, Counsel Stack Legal Research, https://law.counselstack.com/opinion/halstead-v-murray-nh-1988.