McInnis v. Lind

108 P.3d 578, 198 Or. App. 139, 12 A.L.R. 6th 797, 2005 Ore. App. LEXIS 222
CourtCourt of Appeals of Oregon
DecidedMarch 2, 2005
Docket00002-01550; A115791
StatusPublished
Cited by6 cases

This text of 108 P.3d 578 (McInnis v. Lind) is published on Counsel Stack Legal Research, covering Court of Appeals of Oregon primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
McInnis v. Lind, 108 P.3d 578, 198 Or. App. 139, 12 A.L.R. 6th 797, 2005 Ore. App. LEXIS 222 (Or. Ct. App. 2005).

Opinion

*141 ORTEGA, J.

This is a case involving an alleged oral modification of a written option to purchase real property. Defendant, the would-be seller, denies that the parties agreed to any modification. Plaintiff, the would-be buyer, insists that the written option agreement was modified and seeks specific performance of the agreement as modified. The trial court agreed with defendant that the claimed oral modification was barred by the statute of frauds because there was no writing sufficient to satisfy the statute and no partial performance that would remove the contract from the statute. Plaintiff appeals the resulting grant of summary judgment to defendant, and defendant cross-appeals the denial of his request for attorney fees. We conclude that there is a triable issue regarding whether the parties intended two writings to be read together to satisfy the statute and therefore reverse the summary judgment. Because of that disposition, we do not address the remaining issues raised by plaintiff or defendant’s cross-appeal regarding his request for fees.

On review of a grant of summary judgment, we state the facts in the light most favorable to the nonmoving party, in this case plaintiff. Lang v. Oregon-Idaho Annual Conference, 173 Or App 389, 391, 21 P3d 1116 (2001). In 1995, the parties entered into a four-year written lease agreement for an industrial property in Portland that included an option to purchase the property (the original option). The original option was set forth in a separate written document and included a detailed description of the parcel, extensive closing terms, and a purchase price of $123,200, payable “on a note and trust deed in monthly installments of not less than $1030.00 including 8 [percent] per annum[,]” with the “[e]ntire unpaid balance due and payable on or before 20 years from the recording of said trust deed.” The original option provided that, in order to exercise it, plaintiff must “deliver written notice thereof to [defendant] on or before” the option’s specified expiration date, accompanied by payment in the amount of $5,000, to be applied to the purchase price. The option could not be exercised dining the term of the lease and could be exercised “only if [plaintiff] is not nor has been in default under any term of this lease.”

*142 According to defendant, plaintiff breached the lease and thereby forfeited his rights under the original option. After defendant filed an ejectment action, the parties entered into settlement negotiations, but they now dispute whether they reached a settlement. According to plaintiff, defendant agreed to dismiss the action in exchange for plaintiffs promise to pay a higher pinchase price for the property than the original option called for — specifically, a price of 80 percent of the fair market value as determined by a mutually agreed-upon appraiser. Defendant claims that he agreed to dismiss the action but never agreed on settlement terms with plaintiff and never agreed to modify the original option.

Plaintiff submitted several pieces of evidence to support bis claim that the parties reached an agreement. First, a letter from defendant’s attorney to plaintiffs attorney (the compromise letter) stated the following:

“I wish to confirm our settlement. I do request that you sign a copy of this letter and return it to me acknowledging our agreement as follows:
“1. Your client will pay the funds as per my fax * * *.
* * *
“2. Your client will pay off the Lien. * * *
“3. We will split the cost of a mutually agreeable appraiser who will value the property in August or September. Your client will have the option to purchase the property for the appraised value less 20 [percent] with closing to be as set forth in the [original option]. If your client declines to purchase, he should vacate by the same date.
“4. It is almost time for the June utilities. I am going on vacation until June 30, but upon my return I will fax the utility breakdown to you.
“I must insist that if we have resolved this matter in the way we have discussed, that you sign the bottom of this letter evidencing our agreement. The letter and the funds as well as proof of the Lien pay-off should be in my hands upon my return from vacation. We can then file a Stipulated dismissal of [defendant’s ejectment action]. If we don’t have an agreement, we should then proceed.”

*143 Plaintiffs attorney did not sign the bottom of the letter as requested. However, about a month later, he sent defendant’s attorney the following letter:

“Enclosed are checks to your trust account totaling $22,065.22 representing payment of rent, utilities and fees from October, 1998 through June 1999, adjusted for amounts already accepted by [defendant] for that time period, and rent for July 1999. You are not authorized to disburse these funds to [defendant] unless and until [defendant’s ejectment action] is dismissed with prejudice. Also enclosed is a receipt from the city of Portland evidencing that the assessment against the * * * property has been paid off.
“A formal addendum to the [original option] should be signed by [defendant] and [plaintiff], providing that at the time of the exercise of the option, [defendant] and [plaintiff] will split the cost of an appraisal of the property. We would recommend Mark Barry who has experience of appraising property in the area * * *. * * * The option agreement addendum would then provide that [plaintiff] has the option to purchase the property at twenty percent below the appraised fair market value. Please advise if you wish our office to prepare the addendum.
“Thank you for your cooperation in resolving this matter.”

Two weeks later, the parties entered into a stipulated notice and judgment of dismissal for the ejectment action, stating that “the parties give notice of dismissal of the action herein for the reason that the claim has been fully compromised and settled with prejudice and without cost to any of the parties.” Additionally, the parties hired a mutually agreed-upon appraiser but cancelled his services before he appraised the property, apparently because their dispute continued.

When the lease term ended, plaintiff attempted to exercise his alleged option to purchase the property but defendant refused to convey the property. Plaintiff tendered to defendant $5,000, as required by the original option, but defendant did not cash that check. For each of the next three months, plaintiff tendered a check to defendant for $1,030, the monthly amount required under the original option’s *144 payment terms. Defendant did cash at least one of those checks but insists that he considered them rent from a holdover tenant. 1

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Cite This Page — Counsel Stack

Bluebook (online)
108 P.3d 578, 198 Or. App. 139, 12 A.L.R. 6th 797, 2005 Ore. App. LEXIS 222, Counsel Stack Legal Research, https://law.counselstack.com/opinion/mcinnis-v-lind-orctapp-2005.