Matney v. Cedar Land Farms, Inc.

224 S.E.2d 162, 216 Va. 932, 1976 Va. LEXIS 228
CourtSupreme Court of Virginia
DecidedApril 23, 1976
DocketRecord 750746
StatusPublished
Cited by19 cases

This text of 224 S.E.2d 162 (Matney v. Cedar Land Farms, Inc.) is published on Counsel Stack Legal Research, covering Supreme Court of Virginia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Matney v. Cedar Land Farms, Inc., 224 S.E.2d 162, 216 Va. 932, 1976 Va. LEXIS 228 (Va. 1976).

Opinion

Compton, J.,

delivered the opinion of the court.

This appeal arises from the trial of two consolidated cases in which a building contractor sought compensatory and punitive damages on the ground of fraud from a developer of real estate, as the result of the sale of eight lots in a residential subdivision.

In September 1972, plaintiff Roger L. Matney purchased from defendant Cedar Land Farms, Inc. two parcels of land, comprised of four lots each, in the Cedar Land Farms Subdivision in Tazewell County. Matney, a builder of “spec” homes, negotiated the purchase with defendant H. Paul Buskell, president of the defendant corporation. The evidence showed that in the construction of “spec” (speculation) homes, Matney purchased the land, obtained a construction loan sometimes using the land as collateral, built a home on the property, and sold the property using the proceeds of sale to discharge the loan.

Following Matney’s inability in September 1973 to sell the home he had built on one of the parcels, these actions, in which Matney’s wife joined as a party plaintiff, were filed in December 1973 alleging the defendants were guilty of “cheating and defrauding” the plaintiffs by making false representations at the time the lots were purchased. At the trial before a jury, the court below sustained defendants’ motion to strike the evidence, made after all the evidence was presented, and entered summary judgment for the defendants. We granted the plantiffs a writ of error to the March 1975 final order.

The central issue is whether plaintiffs’ charge of fraud has been proved by clear and convincing evidence sufficient to support a verdict in plaintiffs’ favor. Ancillary to that question is plaintiffs’ contention the trial court erred in certain evidentiary rulings.

On review of a case in which the trial court has sustained a motion to strike after the introduction of all the evidence, we apply *934 the principles governing consideration of evidence upon a motion to set aside a verdict as contrary to the evidence. See Burks Pleading and Practice § 284 at 514 (4th ed. 1952). “[W]e examine the evidence to determine whether or not a verdict in behalf of the losing party can be sustained. That is, upon a careful consideration of all the evidence, if we are of opinion that reasonable men may differ on the conclusion to be reached, then it is our duty to hold that the trial court committed error in striking the evidence.” Walton v. Walton, 168 Va. 418, 422, 191 S.E. 768, 770 (1937). In viewing the evidence we give the plaintiffs “the benefit of all substantial conflict in the evidence, and all fair inferences that may be drawn therefrom.” Id. 168 Va. at 423, 191 S.E. at 770. See Dudley v. Guthrie, 192 Va. 1, 3, 5, 63 S.E.2d 737, 738, 739 (1951); Anderson v. Clinchfield R.R., 171 Va. 87, 89-90, 198 S.E. 478, 479 (1938).

The record shows that in about 1966 Buskell began to subdivide Cedar Land Farms, a tract of land containing between 600 and 700 acres. As the land was developed over the years, it was surveyed and divided piecemeal into lots which were then platted on a master map maintained in the subdivision field office. Prior to September 1972, Matney had constructed a number of houses in Cedar Land Farms on property he had purchased from Buskell which had previously been subdivided.

Matney testified that on a day in September 1972, while he was working with his brother constructing a “spec” home on property his brother had bought in the subdivision, he agreed with Buskell to purchase two contiguous parcels of eight lots adjoining the brother’s property, to pay $1000 cash, and to execute two unsecured demand notes of $2500 each payable to the corporation for the remainder of the purchase price. The negotiations took place on the premises while Matney and Buskell were standing adjacent to the lots, which were each 25 feet wide by 125 feet deep and marked by visible stakes.

Thereafter, Buskell notified the subdivision surveyor of the Matney agreement. The surveyor then platted the lots on the master field office map and drafted a description of the parcels by lot, block and section number, and by metes and bounds. These alternative descriptions were transmitted by Buskell to the office of the attorney for Cedar Land Farms for preparation of two deeds. A secretary in the attorney’s office asked Buskell “if it would be all right to convey by lot numbers instead of metes and bounds to expedite [our] work load.” Buskell consented.

*935 Accordingly, one deed, dated September 12, 1972, described one parcel as “being Lots Nos. 14-17, inclusive, in Block No. 3, Section No. 5”; the other deed, dated the following day, described the second parcel as “being Lots Nos. 10-13, inclusive” in the same block and section. Both deeds further described the property as

“shown and described by metes and bounds on that certain plat, entitled: ‘MAP CEDAR LAND FARMS INC.’, annexed to that certain deed from Cedar Land Farms, Inc., to Wayne Tester and John R. Dotson, dated 26 January, 1971, and recorded in the Office of the Clerk of the Circuit Court of Tazewell County, Virginia, in Deed Book 360, page 505, and Plat Card Nos. 2947A—2947D”.

The lots sold to Matney were not shown or described on the referenced plat. These general warranty deeds were delivered, and recorded on October 30, 1972.

About a year later, Matney learned of the error when he attempted to sell the house he had constructed on lots 14-17. The prospective purchaser sought a loan and the lending institution’s attorney, upon examining the title, discovered that the lots did not appear on the recorded plat mentioned in the deed and refused to certify title. Upon being advised of the problem Buskell directed his attorney to prepare deeds of correction for both parcels describing them by metes and bounds. One deed of correction was executed and delivered to Matney but never recorded; the deed for the other parcel was also executed but Matney refused to accept delivery. These suits followed.

Matney contends that plaintiffs did not acquire “good title” because the property described in the deeds “did not by description exist” on the recorded plat. Matney argues that Buskell’s fraudulent conduct stemmed from an attempt to circumvent the Tazewell County Subdivision Ordinance. The ordinance, which Matney claimed applied to Cedar Land Farms Subdivision, became effective February 1, 1971. The pertinent portions of the ordinance, in essence, prohibit the sale of a lot in a subdivision to which the ordinance applies before a plat duly certified by the board of supervisors, or its designee, has been recorded. Matney also contends that Buskell knew he would attempt to reconvey the property and that defendants misrepresented to plaintiffs’ detriment that the certified plat had been recorded.

Buskell denied making any fraudulent representations and, while disputing the applicability of the ordinance to this subdivision created before adoption of the ordinance, conceded that if the ordinance ap *936

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Bluebook (online)
224 S.E.2d 162, 216 Va. 932, 1976 Va. LEXIS 228, Counsel Stack Legal Research, https://law.counselstack.com/opinion/matney-v-cedar-land-farms-inc-va-1976.