Mullins v. Oates

179 P.3d 930, 2008 Alas. LEXIS 22, 2008 WL 540208
CourtAlaska Supreme Court
DecidedFebruary 29, 2008
DocketS-11623
StatusPublished
Cited by31 cases

This text of 179 P.3d 930 (Mullins v. Oates) is published on Counsel Stack Legal Research, covering Alaska Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Mullins v. Oates, 179 P.3d 930, 2008 Alas. LEXIS 22, 2008 WL 540208 (Ala. 2008).

Opinion

OPINION

FABE, Chief Justice.

I. INTRODUCTION

Margret Mullins appeals a final judgment of the superior court terminating her rights and interests in three lots of real property located in Tok. Because the superior court did not err in enforcing the settlement agreement that Mullins ultimately breached, we affirm the superior court’s judgment.

II. FACTS AND PROCEEDINGS

A. Facts

On November 17, 1997, Margret Mullins contracted with Alice Oates to buy three lots of real property located in Tok. 1 The initial contract for sale provided that the purchase price for these properties was $170,000; the down payment was $5,000; the monthly payment was $600; interest on the principal would accrue at a rate of $6,000 per year or five percent, “whichever is less”; Mullins would maintain a minimum of $60,000 worth *933 of insurance on a commercial log structure located on one of the lots; and the price of this insurance would not be deducted from the payments Mullins made to Oates. These terms were to last fifteen years, at the end of which Mullins would pay Oates “any remaining balance of principal and interest.” In addition to establishing this particular price and payment scheme, the initial contract for sale also established a three-stage method for transferring title to Mullins. Under the prescribed method, title to one lot would transfer to Mullins after she had paid $30,000 in principal; title to a second lot would transfer after she had paid an additional $50,000; and title to the final lot would transfer after she had paid the remaining amount. Finally, the initial contract for sale established the consequences of a breach by Mullins:

Should buyer default on this agreement, all title and interest unto any Lots which remain unpaid at the time shall revert to Seller, and all previous interesi/principal payments made by Buyer unto Seller under this contract shall be deemed earned by Seller, thereby completely satisfying Seller’s damages from Buyer’s Default.

Upon execution, the initial contract for sale “immediately” transferred full use and possession of all three lots to Mullins, “with all rental and other revenues from this date forward being the property and possession of the buyer.” Mullins was to begin monthly payments to Oates “thirty days from the date of [the contract].” 2

On June 15, 1998, Mullins and Oates signed an “Addendum to the Contract of Sale,” the purpose of which was to set forth “additional items of agreement which were overlooked” in the initial contract. In this addendum, Mullins and Oates set forth two “additional items of agreement,” both of which appear to have been intended to clarify past events and unwritten agreements. First, the addendum retroactively clarified that Mullins and Oates had agreed to delay Mullins’s first monthly payment “until January 15, with no interest accruing for that free rent period.” 3 The addendum explained that this delay in payment was necessary because Oates had — without the knowledge or assent of Mullins — given the business renting space in the commercial log structure permission to forgo paying rent until January 1, 1998. Second, the addendum retroactively clarified that the original asking price for the land had been $160,000 but that Mullins had offered and Oates had accepted an additional $10,000 in exchange for a guarantee that “seller would work with buyer as and when needed, giving buyer leeway without harm to buyer’s credit, when necessary, concerning the monthly payments.”

On December 11, 2001, Oates, acting through her attorney, sent a letter to Mullins, asserting that Mullins had defaulted on the contract by failing to make payments 4 and failing to provide proof of insurance. 5 On December 28, 2001, Oates, again acting through her attorney, sent a “follow up” letter to Mullins. In this letter, Oates noted that she had not yet received a response from Mullins and threatened to begin legal action to terminate Mullins’s rights under the contract if a response was not received within ten days. Mullins asserts that she was away from Tok when these letters were sent and that her response was therefore necessarily delayed. Mullins insists, however, that she did eventually mail a response on January 7, 2002. According to Oates, Mullins’s response was never received.

B. Proceedings

On April 9, 2002, Oates filed a complaint in superior court seeking an order and judge *934 ment declaring that Mullins’s “rights, title and interests in and to the ... real property-are foreclosed and title to the ... real property is vested in [Oates] free and clear of any right, title and interest [Mullins] may have.” Mullins was served on June 17, but failed to timely appear, file an answer to the complaint, or otherwise defend herself. On July 15 Oates filed an application for entry of default against Mullins for her “failure to plead in or defend the [c]omplaint.” Two days later, the court granted this application and entered a default judgment against Mullins.

On August 15, 2002, Mullins filed a pro se pleading in which she moved the superior court to (1) set aside the default judgment; (2) grant her extra time to prepare her pleadings; (3) allow her to file her pleadings by fax; (4) dismiss Oates’s complaint against her; and (5) award punitive damages against Oates for frivolously using the court as a means of defrauding and harassing her. On August 28 the superior court granted Mullins’s motion to set aside the default but did not decide her remaining motions, other than to rule that she could not file pleadings by fax. On October 8, 2002, the superior court denied Mullins’s motions to dismiss the complaint and to award punitive damages. The superior court then entered a pretrial order setting trial for the week of May 26, 2003. On February 19, 2003, the superior court ordered a settlement conference to be held before Standing Master Katherine Bachelder, as mediator. 6

As ordered, a settlement conference took place on April 4, 2003. During the settlement negotiations, Mullins and her husband and Oates and her attorney were in separate rooms, while Master Bachelder went back and forth between the two parties. After several hours of off-the-record settlement negotiations, both Mullins and Oates went on the record, in open court, and orally agreed to the terms of a settlement.

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Cite This Page — Counsel Stack

Bluebook (online)
179 P.3d 930, 2008 Alas. LEXIS 22, 2008 WL 540208, Counsel Stack Legal Research, https://law.counselstack.com/opinion/mullins-v-oates-alaska-2008.