Hoecher v. Runyan

2001 WY 39, 21 P.3d 339, 2001 Wyo. LEXIS 49, 2001 WL 379922
CourtWyoming Supreme Court
DecidedApril 17, 2001
DocketNo. 00-156
StatusPublished
Cited by1 cases

This text of 2001 WY 39 (Hoecher v. Runyan) is published on Counsel Stack Legal Research, covering Wyoming Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Hoecher v. Runyan, 2001 WY 39, 21 P.3d 339, 2001 Wyo. LEXIS 49, 2001 WL 379922 (Wyo. 2001).

Opinion

HILL, Justice.

[¶1] We review a Judgment and Order of the district court that dismissed with prejudice a complaint filed by the Appellants, Charles and Joy Hoecher (Hoechers). The Hoechers sought to recover damages, as well as attorney's fees, from Appellee, Robert E. Runyan (Runyan), for breach of a real estate sales contract.

[¶2] We will reverse and remand with directions.

ISSUES

[¶3] The Hoechers pose these issues for our resolution:

1. Whether the trial court erred in its interpretation of the contract to buy and sell real estate as a matter of law?
A) Whether, under the guise of interpretation, the trial court rewrote the contract and imported into the agreement terms specifically considered and rejected by the parties?
B) Whether the trial court erred in its interpretation of the financing provisions of the contract as a matter of law?
2. Whether the trial court's legal conclusion that Appellee Robert Runyan failed to qualify for financing is correct as a matter of law?
3. Whether the trial court's factual conclusion that Appellee Robert Runyan failed to qualify for financing is clearly erroneous?
4. Whether the trial court erred as a matter of law in its conclusion that the Appellants waived their right to written notice of Appellee's intention to exercise an option to void the contract and their right [340]*340to a written letter of declination from Ap-pellee's lender?
5. Whether the trial court erred as a matter of law in ruling that enforcing the written notice requirement would be unconscionable?
6. Whether the trial court's non-sequitur conclusion that Appeliee Robert Runyan validly exercised an option to void the contract is error as a matter of law?
7. Whether Appellants, as the non-breaching parties, are entitled to their attorney fees incurred in this appeal and, upon remand, in the trial court proceedings?

Runyan provides this summary of the issues:

I. The trial court was correct in holding that Mr. Runyan's ability to obtain financing was a condition precedent to the contract.
IL The trial court was correct in finding that Mr. Runyan failed to qualify for financing.
III. The trial court was correct in finding that Mr. Runyan exercised his option to void the contract under Paragraph V.E. and that the Appellants' [sic ] waived their right to written notice of the seller's denial of financing and intent to void the contract.

The Hoechers identify several rebuttal issues in their reply brief:

1. Appellee misstates, mischaracterizes, and embellishes the record.
2. Appellant did not waive the issue of whether the contract is unambiguous.
3. A condition precedent cannot arise from ambiguity.
4. Impracticability is not a defense to a failure to give notice of an event that never occurred.

FACTS

[¶4] The facts are not so much complicated as they are lengthy. The Hoechers set out to sell their home in Cheyenne at an advertised price of $214,500.00 without the assistance of a real estate agent. Runyan agreed to buy it. As we proceed through the mire of facts, it is helpful to begin with a recitation of the facts which the district court determined were dispositive of this matter, hence, justifying dismissal of the complaint with prejudice. The district court took note of the basic fact that the Hoechers and Run-yan had entered into a contract on July 29, 1997. On June 10, 1997, Security First Bank (SFB) sent a letter to Runyan that summarized a conversation Runyan had with SFB on June 10, 1997. The letter stated that SFB would lend Runyan up to $200,000.00 under these terms:

A 5 year loan, priced at 1 year Treasury plus 800 basis points, with annual interest adjustments. Interest would be payable monthly.
A loan fee of 2% of amount financed paid by [Runyan].
The bank would lend up to 70% of appraised value of the residence purchased. Publicly traded stock, owned by [Runyan], will be pledged to the Bank in the amount equal to 80% of the loan amount financed as additional collateral.
[Runyan] will deposit an amount into the bank equal to Principal, Interest, Taxes and Insurance for one year to be held by the bank to be pledged as additional collateral.

Additional details of the proposal were eventually spelled out in a Truth-In-Lending disclosure statement. Those details included that, based on a loan amount of $217,104.10, Runyan would make one monthly payment in advance and then make 59 monthly payments of $1,565.94 beginning October 1, 1997, and then a balloon payment of $223,160.94 on September 1, 2002.

[¶5] This sort of loan is characterized as a portfolio loan. Once Runyan received the June 10, 1997, commitment letter, he proceeded to look for a home in Cheyenne. Runyan was aided in his search by Dawn Chymych (Agent), and the Agent was to be paid for her services by a 8% commission on the selling price of the house. Runyan made an initial offer of $207,000.00, but the Hoech-ers rejected that. At Runyan's suggestion, it was agreed that the Agent's commission would be paid by the Hoechers and, as consideration for that agreement, Runyan increased his offer on the home to $216,-[341]*341500.00-$210,000.00 for the house, $6,500.00 for the Agent's commission. plus

[¶6] The district court viewed the following provisions of the contract as important. The contract provided that Runyan made an earnest money deposit of $1,000.00, and it provided that the approximate balance of $215,500.00 was to be paid in cash, cashier's check, electronically transferred, or certified funds at closing. The district court found that the Agent had placed the balance to be paid at closing on the wrong line, and that no one noticed the mistake (the Hoechers contended that was not an "unnoticed" mistake, but exactly what the parties intended and, of course, that is precisely how the contract read). The district court also found that the Hoechers knew that Runyan was seeking unconventional financing for this real estate deal, and that they acquiesced in that method of "financing." The district court went on to rely heavily on Article V of the contract, which set out Runyan's responsibilities with respect to obtaining a loan. The closing on the property did not go as originally scheduled on August 25, 1997, and because SFB and Runyan failed to get an appraisal until August 28, 1997, the closing was rescheduled for September 2, 1997, the day after Labor Day. The appraisal valued the property at $209,000.00, i.e., the real value of the home, less the Agent's commission.

[¶7] Because of these civreumstances, SFB informed Runyan that he would have to make up for the difference by an additional pledge of stock. Runyan refused to pledge additional stock and, hence, SFB notified Runyan that the loan would be denied, though that did not cceur until about a week after the scheduled September 2, 1997 closing. That letter was issued simply because Runyan refused to live up to his original agreement with SFB.

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

Related

Cite This Page — Counsel Stack

Bluebook (online)
2001 WY 39, 21 P.3d 339, 2001 Wyo. LEXIS 49, 2001 WL 379922, Counsel Stack Legal Research, https://law.counselstack.com/opinion/hoecher-v-runyan-wyo-2001.