Misner v. Newton

448 P.2d 595, 1968 Wyo. LEXIS 217
CourtWyoming Supreme Court
DecidedDecember 23, 1968
DocketNo. 3704
StatusPublished
Cited by2 cases

This text of 448 P.2d 595 (Misner v. Newton) is published on Counsel Stack Legal Research, covering Wyoming Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Misner v. Newton, 448 P.2d 595, 1968 Wyo. LEXIS 217 (Wyo. 1968).

Opinion

Mr. Justice McINTYRE

delivered the opinion of the court.

Mr. and Mrs Ernest L. Newton sued Dr. and Mrs. D. S. Misner on a contract for exchange of real estate properties.

At first, summary judgment was granted to defendant-Misners. That judgment was reviewed by us in Newton v. Misner, Wyo., 423 P.2d 648. We found genuine issues of material facts and remanded the case for trial. On trial to the court without a jury, the district court awarded judgment for plaintiff-Newtons and the Misners have appealed.

In order to understand the situation presented on this appeal, it will be important to keep in mind that Newtons are suing the Misners and the Newtons have the burden of proof. This means the Newtons, as plaintiffs, must prove mutuality of agreement.

For plaintiffs to prevail, they must do one of two things: (1) Without the aid of parol evidence, they must demonstrate that the written agreement between the parties clearly and without ambiguity expresses the terms contended for by them; or (2) they must rely on the contract being ambiguous and prove the Misners intended the terms to be what plaintiffs claim the parties agreed to.

If the contract is considered ambiguous and subject to parol evidence, then it is not enough for plaintiffs to show what they thought the terms were. They must show that defendants also intended the same terms. On the other hand, the Misners, as defendants, have no responsibility to show mutuality, or to show Newtons intended what was intended by defendants.

The written agreement entered into between the parties is in the form of an offer and acceptance. It describes the Newtons as “Seller,” the Misners as “Buyer,” and the Lander home of the Newtons as the property being purchased. According to the instrument, the Misners, as buyers, offered .to buy the Ernest Newton home on certain terms, the terms considered pertinent to our decision being these:

“* * * for a total PURCHASE PRICE of $52,500 on following terms and conditions, to-wit $500 deposit with this offer as part payment to be held by Agent pending exchange of final papers, subject to the following contractual conditions, and the balance of the purchase price to be paid as follows:
“Buyer will trade in as part payment— $40,000 home on approximate ¡kj acre in Cody, Wyoming. Balance of $12,000 will be paid Sellers agent upon delivery of merchantable title. Sellers will assume Provident Federal loan not in excess of $22,000 on said Cody home. Buyers will assume First Guaranty Loan not in excess of $30,000 on said Lander home.”

The instrument shows the Newtons, as sellers, accepted the offer made, and real estate broker Merritt Toyne, as agent for sellers, acknowledged receipt of the deposit mentioned in the instrument.

Buyer-Misners delivered seller-Newtons their $40,000 home in Cody; they assumed a mortgage $7,251.56 larger than the mortgage assumed by Newtons on the Cody home; they paid a cash deposit of $500; and in settlement with the real estate broker, Toyne, they made an additional cash payment of $4,748.44. Thus, the total consideration paid by Misners for the Lander home was $52,500.

.It is the contention of the Newtons that despite the other considerations the addi[597]*597tional cash payment should be $12,000 instead of $4,748.44, or $7,251.56 more than was paid. The difference is the difference in the size of the two mortgages. If the Newton contention is allowed, it would make a total consideration of $59,751.56 for the Newton home.

We cannot accept the Newton contention that the contract is clear and unambiguous in terms claimed by them. At least two clear and unequivocal statements in buyers’ offer contradict Newtons’ interpretation. First, Misners offered to buy the Newton home “for a total PURCHASE PRICE of $52,500.” That cannot, without parol evidence to establish it, be made a total purchase price of $59,751.56.

Moreover, the offer stated buyers would trade in as part payment a “40,000 home” in Cody. That can only mean the Cody home was, for purposes of this transaction, to be valued at $40,000. Should parol evidence, no matter how strong, be allowed to alter the fact that Misners offered to buy the Newton home “for a total PURCHASE PRICE of $52,500,” when the price is so clearly stated? Or again, should any kind of parol evidence be allowed to alter the fact that the Misner home was to be considered a “$40,000 home,” when the value is so clearly stated?

It is to be noted that the difference between a $52,500 purchase price, less a $500 down payment, and a $40,000 home in Cody is $12,000. The offer did not state, as plaintiffs continue to argue, that a balance of $12,000 was to be paid “in cash.” The language contained is, “Balance of $12,000 will be paid Sellers agent upon delivery of merchantable title.” How the balance was to be paid is not stated.

The confusing and somewhat ambiguous part comes in the language stating: “Sellers will assume Provident Federal loan not in excess of $22,000 on said Cody home. Buyers will assume First Guaranty Loan not in excess of $30,000 on said Lander home.”

A possible interpretation of the contract would be to say it is to be implied that any difference between the greater mortgage assumed by Misners and the lesser mortgage assumed by Newtons is to be considered part of the payment on the balance of $12,000.

We felt, however, when the case was before us on summary judgment, that the language of the written offer and acceptance was sufficiently confusing and ambiguous that we could not be sure whether it was intended that buyers would pay $12,-000 in cash, and in addition assume a mortgage approximately $8,000 greater than the one assumed by sellers.

Parol Evidence

Still assuming there was ambiguity in the contract, we are ready to turn to the evidence to see if plaintiffs satisfied their burden of proof by showing mutuality of agreement that Misners were to pay $12,000 in cash, in addition to assuming a mortgage approximately $8,000 larger than the one assumed by Newtons. As we have previously said, it is not enough that Newtons understood that to be the buyers’ offer. It must he shown that Misners intended such an offer.

In the former appeal we said, at 423 P.2d 652, we were convinced there was a genuine issue of material fact; and that these two focal points must be considered :

“(1) The existence or nonexistence of evidence tending to show that there was oral confirmation at the time of the written agreement by which the Misners would pay the Newtons $12,500 in cash; and
“(2) If there was an agreement that $12,-500 should be paid in cash by the buyers to the sellers, was this altered by a later accord and satisfaction or settlement?”

Concerning the first of these focal points, as to whether there was oral confirmation that Misners would pay $12,500 in cash and in addition assume a mortgage approximately $8,000 greater than the one assumed by Newtons, we fail to find anything in the evidence which would indicate the Newton home had a value, or was ever valued, [598]*598substantially in excess of $52,500. Also we fail to find anything in the evidence which would indicate the Misners ever intended to take less than $40,000 for their home.

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Bluebook (online)
448 P.2d 595, 1968 Wyo. LEXIS 217, Counsel Stack Legal Research, https://law.counselstack.com/opinion/misner-v-newton-wyo-1968.