Marian G. Hoke v. NeYada, Inc.

387 P.3d 118, 161 Idaho 450, 2016 Ida. LEXIS 393
Idaho Supreme Court·Decided December 8, 2016·No. Docket 43343·Published·Cited by 9 cases

Opinions

W. JONES, Justice

I. Nature of the Case

NeYada, Inc. (“NeYada”), a Nevada corporation, appeals from the district court’s order granting summary judgment to Respondent, Marian Hoke (“Hoke”), and declaring a lease (the “Lease”) and an option to purchase (the “Option”) between the parties invalid and unenforceable. In November 2014, Hoke executed the Lease and Option with NeYada for the transfer of an interest in real property located in Canyon County, Idaho. A mere two months later, Hoke filed suit seeking to invalidate the Lease and the Option alleging, inter alia, that neither document complied with the statute of frauds. Both parties moved for summary judgment on that issue. The district court held that the Lease and Option (together, the “Contract”) were invalid and unenforceable because neither complied with the statute of frauds. Further, the district court held that the doctrine of part performance did not require the enforcement of the otherwise invalid Contract.

II. Factual and Procedural Background

Hoke, an elderly widow living in Canyon County, Idaho, is the sole trustee of the Hoke Family Trust. The Hoke Family Trust owns the property at issue, which is located at 16867 Portner Road, Nampa, Idaho (the “Property”). The Property consists of fourteen (14) mobile home lots and thirteen (13) mobile homes situated on 1.96 acres of land.1

The transaction between NeYada and Hoke was structured as a lease with an option to purchase. The Lease and the Option were executed on November 7, 2014. [452]*452The Lease was “subject to and contingent upon the Lessor entering into a written agreement with NeYada, Inc., giving them the right to purchase the subject property.” The Option, a separate document, granted NeYada the right to purchase the Property for $200,000, less a credit of $20 and a “credit for 94.6% of all monthly lease payments paid to [Hoke] under the separate Land Lease.... ”

Upon the execution of the Lease and Option, an escrow account was opened with Idaho Escrow. The escrow instructions contemplated that NeYada would pay Hoke $800 a month towards the principal of $200,000 beginning on December 15, 2014. Hoke and NeYada further agreed that Hoke owed Ne-Yada $1,610 for prorated November rent, which she had afready collected from tenants.

On November 15, 2014, Hoke toned over actual possession of the Property to NeYada along with the bills of sale for the two mobile homes. Hoke also paid NeYada $1,610, per their agreement. NeYada began managing the Property. It posted late notices and new leases on tenants’ doors, opened new accounts, paid past-due taxes, registered the mobile homes in its name, and hired a property management company. In sum, by executing the Lease and the Option, NeYada became the landlord for the tenants of the Property, but still paid rent to Hoke.

Shortly following the execution of the Contract, Hoke beeame concerned about the transaction. She consulted with an attorney, and on December 1, 2014, Hoke’s counsel mailed a letter to NeYada explaining that the Lease and Option were null and void because each, among other deficiencies, violated the statute of frauds. Further, the letter demanded that NeYada cease and desist from any further actions pertaining to the Property. Hoke instructed the tenants of the mobile homes on the Property to pay rent to her directly.

Hoke filed her complaint on January 12, 2015, seeking to invalidate the Lease and Option for, inter alia, violation of the statute of frauds. An answer and counterclaim were filed by NeYada on February 25, 2015. Therein, NeYada sought to enjoin Hoke from accepting rent from the mobile home tenants, claimed that Hoke breached the Lease and Option, and sought a declaration that the Lease and Option were valid and enforceable.

The parties each filed a motion for summary judgment. NeYada argued, inter alia, that the property descriptions in the Lease and the Option complied with the statute of frauds, and alternatively, that the doctrine of part performance took the matter outside of the statute of frauds. Conversely, Hoke argued, inter alia, that the legal descriptions attached to the Lease and Option were inadequate and void. On March 26, 2015, the parties met with the district court and agreed to submit additional briefing on the issue of whether the legal descriptions of the Property in the Lease and the Option were sufficient.

After hearing oral argument on the parties’ competing motions for summary judgment, the district court held that the Lease and Option were invalid and void due to noncompliance with the statute of frauds. Specifically, the district court held that the descriptions of the Property in the Lease and Option were inadequate. Further, the district court held that the doctrine of part performance did not require the enforcement of the otherwise invalid Contract because the claimed performance—NeYada’s rent payment—did “not constitute fully [sic] or even a substantial portion of the payments to be made under the agreements.”

On April IS, 2015, NeYada filed a motion to reconsider and to set aside judgment arguing that regardless of whether the Option was enforceable, the Lease should be enforced because “the standard to comply with the statute of frauds for a lease is entirely less strict than the legal description required for ... an option.” The district court denied the motion to reconsider, holding that the Lease and Option comprised a single transaction. The district court reasoned that because the Option was insufficient to satisfy the statute of frauds, the Lease was also invalid under the statute of frauds.

On June 2, 2015, Hoke filed a motion for turnover of the mobile home titles. NeYada appealed the judgment and the denial of the motion to reconsider on June 16, 2015. [453]*453Thereafter, the district court granted Hoke’s request for costs and attorney’s fees, and also ordered NeYada to turn over the two mobile home titles to Hoke. In response, NeYada filed an amended notice of appeal.

III.Issues on Appeal

1. Whether the district court erred by failing to specifically enforce the Contract via the doctrine of part performance.
2. Whether the district court erred in awarding Hoke attorney’s fees and costs.

IV.Standard op Review

The standard of review on appeal from an order granting summary judgment is the same standard that is used by the district court in ruling on the summary judgment motion. Baxter v, Craney, 135 Idaho 166, 170, 16 P.3d 263, 267 (2000). All disputed facts are to be liberally construed in favor of the non-moving party, and all reasonable inferences that can be drawn from the record are to be drawn in favor of the non-moving party. Eagle Water Company, Inc. v. Roundy Pole Fence Company, Inc., 134 Idaho 626, 628, 7 P.3d 1103, 1105 (2000). Summary judgment is appropriate only when the pleadings, depositions, affidavits and admissions on file show that there is no genuine issue of material fact and the movant is entitled to judgment as a matter of law. I.R.C.P. 56(c).

Garner v. Bartschi, 139 Idaho 430, 433, 80 P.3d 1031

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Marian G. Hoke v. NeYada, Inc., 387 P.3d 118, 161 Idaho 450, 2016 Ida. LEXIS 393 (Idaho 2016).

387 P.3d 118 (Marian G. Hoke v. NeYada, Inc.) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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