Kofmehl v. Baseline Lake, LLC

275 P.3d 328, 167 Wash. App. 677
CourtCourt of Appeals of Washington
DecidedApril 12, 2012
Docket29683-1-III
StatusPublished
Cited by7 cases

This text of 275 P.3d 328 (Kofmehl v. Baseline Lake, LLC) is published on Counsel Stack Legal Research, covering Court of Appeals of Washington primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Kofmehl v. Baseline Lake, LLC, 275 P.3d 328, 167 Wash. App. 677 (Wash. Ct. App. 2012).

Opinion

Siddoway, A.C.J.

¶1 When a purchase and sale agreement is determined to be void under the statute of frauds, the court may grant rescission and award restitution, restoring the parties to their precontractual positions. But a *679 purchaser who relies on the statute of frauds to avoid the contract may not obtain restitution if the vendor is ready, willing, and able to perform as agreed. Home Realty Lynnwood, Inc. v. Walsh, 146 Wn. App. 231, 240, 189 P.3d 253 (2008). This appeal requires that we address an issue not explicitly addressed in prior cases applying this rule, namely, who bears the burden of proof of establishing whether the vendor is ready, willing, and able to perform? We hold that establishing that the vendor was not ready, willing, and able to perform is an essential part of the vendee’s proof of a right to restitution. Because the trial court erred in imposing the burden on the vendor, we reverse its orders granting summary judgment and attorney fees to Patrick Kofmehl and remand the case for further proceedings.

FACTS AND PROCEDURAL BACKGROUND

¶2 At issue in this case is a portion of a parcel of real property now located in Quincy, Washington, following its annexation in 2007. The full parcel consists of approximately 43 acres described as farm unit (FU) 182, block 73, in Grant County. In January 2007, Baseline Lake LLC, the owner of the property, entered into a listing agreement to sell up to 30.12 acres, for which its asking price was $1.6 million. In listing the property it indicated its willingness to sell the 30.12 acres in smaller parcels of 17.40 acres and 12.72 acres at prorated prices. It withheld the remaining 13 acres from the listing, intending to build a private school on a 3.93-acre parcel in the northwest corner. It had no immediate plans for the south 9.04 acres of the property, which is subject to an easement for an irrigation canal.

¶3 Patrick Kofmehl was one of the parties interested in the listed property; he hoped to acquire it for residential development. Before entering into the agreement that is the subject matter of this dispute, Mr. Kofmehl and his broker, Michael Nicholson, were provided with a survey map that *680 depicted the entire 43 acres owned by Baseline. The survey, to which Mr. Nicholson added the highlighted border, depicted the portions of FU 182 as follows:

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Clerk’s Papers (CP) at 107.

¶4 On March 9, 2007, Mr. Kofmehl executed a proposed real estate purchase and sale agreement by which he offered Baseline $1.5 million for property that his proposed purchase and sale agreement described as follows:

This Agreement covers the following described real estate in the City of Quincy, County of Grant, Washington; commonly known as Approximately 30.12 acres of vacant land situated between 10th Avenue & 13th and legally described as follows: all inside and a part of FU 182, Block 73, Columbia Basin Project, Grant County Tax Parcel number 20-0838-000.

CP at 84 (parentheticals omitted). The March 2007 proposed purchase and sale agreement stated that the offer was subject to the following terms and conditions:

*681 1. Review & approval of the property and [its] lot lines by the purchaser within two weeks of acceptance of this offer by the seller.
2. Final annexation into the City of Quincy by the City of Quincy.
3. Seller agrees to pay to purchaser “late comer fees” of $29,475.00 to the purchase if seller chooses to develop the 3.93 acres he has excluded from the overall parcel number shown above.
5 [sic]. If seller decides not to develop the 3.93 acres he will give this purchaser a 45-day (after seller decides not to develop the 3.93 acres) right of first refusal on that land at a price equal to what the purchaser is paying per square foot for the 30.12 acres included in this offer.

Id. The offer was not accepted. Given market conditions at the time and competing offers for the property, Baseline amended its listing agreement on March 20, 2007 to increase the asking price to $1.65 million.

¶5 After further offers, Mr. Kofmehl and Baseline entered into a purchase and sale agreement on April 17, 2007 (Agreement), by which Mr. Kofmehl agreed to purchase the property at the asking price of $1.65 million. The Agreement was prepared for the most part by Mr. Kofmehl’s broker, Mr. Nicholson, who added typewritten terms to a form real estate purchase and sale agreement. Mr. Kofmehl added one handwritten condition of his own before the Agreement was presented to and accepted by Baseline.

¶6 The provision of the Agreement describing the real estate covered by the Agreement was not identical to the description of the real estate covered by the March 7 purchase and sale proposal. Instead of speaking of 30.12 acres “all inside and a part of FU 182, Block 73” it described the property as follows:

Approximately 30.12 acres of vacant land situated between 10th Avenue and 13th and legally described as follows: All included inside of FU 182, Block 73, Columbia Basin Project, Grant CO Tax Parcel # 20-0838-000.

*682 CP at 75. The terms and conditions of the March 7 purchase and sale proposal dealing with the 3.93 acres in the northwest corner (addressing Baseline’s future development or decision not to develop that parcel) were dropped.

¶7 In addition to including the property description, Mr. Nicholson added the following typewritten terms and conditions to the Agreement:

$50,000.00 Earnest money as shown above in the form of a check to be deposited with [Baseline’s broker’s] Trust Account upon mutual acceptance of this agreement. Said Earnest money to become non-refundable upon Final annexation of this property into the City of Quincy, Washington and is to be released to the seller at that time.
$1,600,000.00 Additional cash at closing.
Offer to purchase subject to the following terms and conditions:
1. Purchaser receiving preliminary plat approval from the City of Quincy.
2. Purchaser closing this sale within five business days after preliminary plat approval from the City of Quincy.
3. Both purchaser & seller may participate in a 1031 exchange at no cost to the nonparticipating party.

Id. Mr. Kofmehl added the following handwritten paragraph to the terms and conditions included by his broker:

4. Accessibility of City sewer.

Id.

¶8 Baseline obtained annexation and preliminary approval of its short plat within a month after the Agreement was signed.

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Related

In re the Estate of: Steven Ward Hall
Court of Appeals of Washington, 2019
Kellogg v. Shushereba
2013 VT 76 (Supreme Court of Vermont, 2013)
Kofmehl v. Baseline Lake, LLC
305 P.3d 230 (Washington Supreme Court, 2013)

Cite This Page — Counsel Stack

Bluebook (online)
275 P.3d 328, 167 Wash. App. 677, Counsel Stack Legal Research, https://law.counselstack.com/opinion/kofmehl-v-baseline-lake-llc-washctapp-2012.