Hine v. Vilter

277 N.W.2d 772, 88 Wis. 2d 645, 1979 Wisc. LEXIS 1971
CourtWisconsin Supreme Court
DecidedMay 1, 1979
Docket76-458
StatusPublished
Cited by7 cases

This text of 277 N.W.2d 772 (Hine v. Vilter) is published on Counsel Stack Legal Research, covering Wisconsin Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Hine v. Vilter, 277 N.W.2d 772, 88 Wis. 2d 645, 1979 Wisc. LEXIS 1971 (Wis. 1979).

Opinion

*647 HEFFERNAN, J.

The judgment and the subsequent order, which made the judgment absolute, followed the court’s order granting the sellers’ motion for summary judgment to enforce a contract for the sale of land.

On this appeal the defendant, the purchaser of the land, asserts for the first time that no contract was entered into between the parties because the requirements of sec. 706.02(1), Stats., 1 the statute of frauds, were not complied with. Whatever the merits of defendant’s argument may be, we are first confronted with the question of whether the defense of the statute of frauds can be raised for the first time on appeal. Because it cannot be, the only question is whether the parties entered into an enforceable oral contract to sell the land.

The record shows that Robert E. Hine, Carl R. Gallauer, and the Farex Corporation, the plaintiffs in this action, are owners of three acres of vacant commercial land in the Village of Oconomowoc Lake, Wisconsin. The defendant, Thomas R. Vilter, executed a written offer to purchase the property for the sum of $130,000. The offer was accepted by Sam H. Wiletsky, the agent for the owners and president of Farex Corporation. Wiletsky, through inadvertence and mistake, signed the acceptance, *648 “Sam H. Wiletsky for H.G.W. Corporation.” The written agreement did not state the identity of the owners. Following some negotiations, the purchaser, Vilter, refused to complete the transaction.

The plaintiffs, Hine, Gallauer, and Farex Corporation, brought an action for specific performance of the contract. The defendant, Vilter, answered, denying that the plaintiffs and defendant entered into any agreement in writing and denying that the copy of the offer-to-purchase form attached to the complaint was a copy of any agreement between the plaintiffs and the defendant. Following the joining of issue, both parties moved for summary judgment.

The affidavits of the defendant demonstrated that the purported acceptance of the offer was signed by Wiletsky for the H.G.W. Corporation, which was not a Wisconsin corporation or a foreign corporation licensed to do business in Wisconsin. The plaintiffs’ motion for summary judgment was supported by affidavits of Hine, Gallauer, and Wiletsky. Each of these affidavits stated that the owners of the property were Hine, Gallauer, and the Farex Corporation, and that Wiletsky, the president of the Farex Corporation, was authorized to act as agent to accept the offer of the defendant, Vilter. In addition, Wiletsky’s affidavit stated:

“[T]hat throughout all of the negotiations between himself and the defendant and Arthur L. Hoffman, a salesman for the A. H. Harrigan Company, the broker who negotiated said Offer to Purchase with the defendant Thomas R. Vilter, the said Thomas R. Vilter knew that Robert E. Hine, Garl R. Gallauer and Farex Corporation were the owners of said property and that Wiletsky was accepting said Offer as their agent.”

These statements in the plaintiffs’ affidavits were not disputed by any of the defendant’s counter-affidavits. On the basis of these affidavits, the trial court concluded that there was no issue of fact to be tried and granted the *649 plaintiffs’ motion for summary judgment. The judgment provided for specific performance of the contract. It directed the defendant to make full payment of the contract price upon the tender of the sellers’ deed. In the event the defendant purchaser did not make payment, the judgment authorized the plaintiff-sellers to offer the property at public or private sale and authorized a deficiency judgment if the sale price did not equal or exceed the amount owed to the sellers under the contract.

In the trial court the defendant only pleaded the absence of any contract in writing. No mention is made in the trial court record that the contract failed to comply with the statute of frauds. On appeal, however, Vilter specifically argues that no contract existed between the parties, because all the requirements of sec. 706.02(1), Stats., were not complied with. In amplification of that position, Vilter argues that the writing did not identify the sellers and that no one signed on their behalf. The defendant is correct in his tardy assertion that the writing did not identify the plaintiffs as sellers and that the contract, therefore, did not comply with the statute of frauds. Sec. 706.01(1) provides in part that the statute of frauds:

“. . . shall govern every transaction by which any interest in land is created, aliened, mortgaged, assigned or may be otherwise affected in law or in equity.”

The transaction, a contract for the sale of land, is within the coverage of the statute.

Sec. 706.02, Stats., provides that transactions described in sec. 706.01(1) shall not be valid unless the listed requirements, including identification of the parties, are set forth. Nevertheless, under sec. 706.04 a transaction which does not satisfy the requirements may still be enforceable, provided that all the elements of the transac *650 tion are clearly and satisfactorily proved and an equitable reason for enforcement is established.

Accordingly, a party seeking to enforce a contract will be afforded the opportunity to prove, even though the writing under the statute of frauds is inadequate, that the contract should be enforced. This option, which makes it possible for one to enforce a contract which does not comply with the statute of frauds, is a reason for imposing the duty to assert the defense of the statute of frauds in the trial court.

It is black-letter law that the defense of the statute of frauds is waived if not raised in the trial court. Corbin states the rule:

“ [T] he statutory defense must be called specifically to the attention of the trial court. It is universally held that the question cannot be raised for the first time on appeal. This is the rule irrespective of whether the statute is thought to make a contract void or merely unenforceable.” 2 Corbin on Contracts, sec. 319, p. 150 (1950).

Williston points out that the statute of frauds is an affirmative defense. Unless the statute is raised by the defendant in the trial court, Williston explains:

“. . . he will be deemed to have impliedly waived the objection that the contract upon which the plaintiff sues was not in writing, and thus forego the protection of the Statute. This is the rule in equity as well as at law. And it is almost universally held that the objection that the contract was within the Statute, when not presented or urged in the trial court, cannot be raised for the first time on appeal.” 3 Williston on Contracts, sec. 527, p. 718 (3d ed., 1960).

The record shows that the defendant never raised the affirmative defense of the statute of frauds in the trial court. While the defendant did assert that the sellers *651 were not named in the writing, his argument was that no contract had been entered into.

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Bluebook (online)
277 N.W.2d 772, 88 Wis. 2d 645, 1979 Wisc. LEXIS 1971, Counsel Stack Legal Research, https://law.counselstack.com/opinion/hine-v-vilter-wis-1979.