Martin v. Community Gas and Oil Co., Inc.

668 P.2d 243, 205 Mont. 394, 1983 Mont. LEXIS 760
CourtMontana Supreme Court
DecidedAugust 24, 1983
Docket83-073
StatusPublished
Cited by9 cases

This text of 668 P.2d 243 (Martin v. Community Gas and Oil Co., Inc.) is published on Counsel Stack Legal Research, covering Montana Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Martin v. Community Gas and Oil Co., Inc., 668 P.2d 243, 205 Mont. 394, 1983 Mont. LEXIS 760 (Mo. 1983).

Opinion

MR. JUSTICE GULBRANDSON

delivered the opinion of the Court.

This case comes on appeal from a summary judgment rendered in the District Court of the Fourth Judicial District, Ravalli County. The pertinent parties to the action are appellant Martin Realty (Martin) and respondent Community Gas and Oil Co., Inc. (Community). For the reasons stated below, we affirm the judgment of the District Court.

Martin arranged for the sale of a tract of land from Community to the Life Evangelistic Association (Life Evangelistic) for a price of $1,168,926. On October 6, 1975, Community and Life Evangelistic entered into a contract for deed for the sale of the land. The contract for deed called for annual payments according to a particular schedule. In addition, the contract for deed contained a “deed release” provision allowing Life Evangelistic to obtain tracts of ten acres or more upon the payment of $1,000 per acre. The deed release provision also contained the following sentence:

“It is specifically understood and agreed that any such payment (deed release) made to the Escrow Agent shall not relieve the Buyer of the obligation to make the next annual payment on the purchase and sale price and of interest as herein provided for.”

On October 8, 1975, Martin and Community executed a written agreement, drafted by Community, which outlined the terms of Martin’s commission incident to the sale of land to Life Evangelistic. Because Life Evangelistic was unable to make the entire down payment from which Martin’s 6 percent commission was to be paid, Martin agreed to payment of the commission over a period of time. The agreement indicated that receipt of the commission payments would occur as each payment under the contract for deed was made by Life Evangelistic. In particular, the commis *397 sion contract stated:

“It is specifically understood that Community Gas will not be responsible to you for any of the commission payments specified above unless and until the Buyer makes the payment from which the commission payment is to be made.” (emphasis added)

Pursuant to these two documents, Life Evangelistic made its first payment on the date the contract for deed was signed and Martin received the corresponding commission payment. The next two payments were made, although not on the dates specified in the contract for deed and the commission contract, and Martin received the corresponding commission payments. Community’s final payment to Martin was to occur on December 6, 1978, upon Life Evangelistic making a $110,000 payment to Community. Life Evangelistic was unable to make the December 6 payment, although it did make payments for deed releases both prior to and for several months following the due date.

On February 15, 1979, Community and Life Evangelistic entered into a modification agreement extending the time for payment to July 31, 1979. Life Evangelistic paid $25,000 at execution of the agreement but failed to make a payment due on April 15, 1979. As a result, Community declared the contract forfeited and closed the escrow. On July 11, 1979, the parties made another attempt at extending the due date. When Life Evangelistic missed a payment under that agreement, Community deemed money received to be “rent” and repossessed the land on August 31, 1979.

Martin brought this action in District Court contending that it was entitled to the last commission payment because Community actually received more money from Life Evangelistic than was required to trigger the final payment under the commission contract of October 8, 1975. Specifically, Martin asserted that Community was obliged to count the money paid for “rent” and deed releases toward the $110,000 amount originally due on December 6, 1978, because at the time of execution of the commission agreement *398 the parties did not intend to exclude these amounts.

Community argued that Martin was paid everything due under the commission agreement of October 8, 1975, because, by the terms of that agreement, conditions precedent to the payment of any additional commission were not met.

Before commencement of a jury trial, the court granted Community’s motion in limine to exclude all evidence as to the intent of the parties to the commission contract except the commission contract itself and contract for deed. In addition, the trial court concluded that although deed release payments for less than ten acres accepted before default on the contract for deed could be counted towards Life Evangelistic’s annual payments, those amounts were substantially insufficient to constitute $110,000 and thereby trigger Martin’s last commission payment. As a result of these rulings, the trial court granted Community’s motion for a summary judgment.

Martin now asserts that the trial court erred in its ruling to exclude extrinsic evidence of the intent of the parties to the commission contract. Specifically, Martin contends that the contract for deed and commission contract cannot be read together because in order for two contracts to be read as one, the parties must be the same for both. Thus, the only agreement the trial court should have considered is the commission agreement between Martin and Community which Martin argues is ambiguous on its face because it does not indicate whether the parties would consider deed release payments or rent towards annual payments under the contract for deed. Therefore, because of the alleged ambiguity, the trial court erred in disallowing extrinsic evidence of the parties’ intent at the time of entering into the commission contract.

Generally, when a contract is reduced to a writing that is plain and unambiguous, the intent of the parties is to be ascertained from that writing alone, if possible. Section 28-3-303, MCA; Merritt v. Merritt (1974), 165 Mont. 172, 526 P.2d 1375. Moreover, the parol evidence rule pro *399 vides that the terms of a written contract cannot be altered or contradicted by extrinsic evidence subject to certain recognized exceptions. Ambiguity is an exception to the parol evidence rule. Section 28-2-905, MCA; Payne v. Buechler (1981), Mont., 628 P.2d 646, 38 St.Rep. 799.

The trial court examined the commission contract and the contract for deed and determined the contract for commission of October 8, 1975, was not ambiguous. The contract stated:

“It is specifically understood that Community Gas will not be responsible to you for any of the commission payments specified above unless and until the Buyer makes the payment from which the commission payment is to be made.” (emphasis added)

Clearly, the words of the agreement show that it was the intent of the parties that the commission payments be contingent upon payments owed under the contract for deed. The commission contract cannot be construed otherwise. Payne v. Buechler, supra. Ambiguity only exists when a contract taken as a whole in its wording or phraseology is reasonably subject to two different interpretations. Keiser v. State Bd. of Regents of Higher Educ.

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

Related

Windemere Homeowners Ass'n Inc. v. McCue
1999 MT 292 (Montana Supreme Court, 1999)
Doble v. Bernhard
1998 MT 124 (Montana Supreme Court, 1998)
Westfork Construction Co. v. Nelcon, Inc.
877 P.2d 481 (Montana Supreme Court, 1994)
Matter of Estate of Flasted
741 P.2d 750 (Montana Supreme Court, 1987)
Martin Development Co. v. Keeney Construction Co.
703 P.2d 143 (Montana Supreme Court, 1985)
Martin Development Co. v. Keeney Co
Montana Supreme Court, 1985
Peterson v. Hopkins
684 P.2d 1061 (Montana Supreme Court, 1984)

Cite This Page — Counsel Stack

Bluebook (online)
668 P.2d 243, 205 Mont. 394, 1983 Mont. LEXIS 760, Counsel Stack Legal Research, https://law.counselstack.com/opinion/martin-v-community-gas-and-oil-co-inc-mont-1983.