Olsson v. Moore

590 N.E.2d 160, 1992 Ind. App. LEXIS 481, 1992 WL 73470
Indiana Court of Appeals·Decided April 15, 1992·No. 53A01-9108-CV-238·Published·Cited by 19 cases

Opinion

BAKER, Judge.

Defendant-appellants Ben Olsson, Lee Ferree, and Debra Ferree (collectively, Ols-son) appeal an adverse judgment rendered in favor of plaintiff-appellees Forrest and Nancy Moore. The issue we must decide is whether the trial court correctly determined that Olsson must bear the burden of fire damage to home renovations performed by the Moores.

FACTS

In late 1988 Forrest and Nancy Moore responded to a newspaper advertisement placed by Ben Olsson concerning a house and lot for sale in Monroe County. At that time, evidently, the home was unsuitable for winter habitation. The Moores indicated their willingness to buy the property, and wished to begin renovations on the home immediately because the closing on the sale of their then current home was imminent. Olsson agreed, and by mid-December of 1988, after placing the utility services in their name, the Moores had repaired and repainted the kitchen floor, had renovated two bedrooms, the living room, the dining room, and had re-roofed the house. During this time the parties were negotiating the purchase price of the home. The Moores wanted to buy more than just the one acre of land offered in the advertisement, so that too was under discussion. Olsson declined the down payment the Moores offered as unnecessary.

Whether a contract was formed between the two parties is an issue in dispute. Certainly there was no written contract. Forrest Moore testified that he thought the deal was the home and 40 acres for $70,-000. Nancy Moore testified that the price changed so much she could not keep track of it. Olsson had a survey drawn up for a sale of about five acres, but testified that at the time of the fire there was no definite agreement about acreage or price.

On December 16, 1988, the day after the Moores closed on the sale bf their then current home, the Olsson home they were renovating burned to the ground. Excepting only some materials left a short distance from the house, it was a total loss. Olsson was insured, however, and collected $40,000 from his insurance company. The insurance adjuster testified that no part of that payment was for the improvements or materials the Moores had provided.

A good deal of testimony was presented about comments made to the Moores after the fire. Several witnesses testified to the effect that Olsson was concerned about the loss the Moores suffered and promised to make things right, whether by reducing the price of the property should the Moores wish to buy it, or by simply reimbursing the Moores for the materials and labor they expended. Eventually the Moores tendered a bill for $5,000 to Olsson for material and labor, but Olsson refused to pay.

The Moores brought suit against Olsson. They sought “a judgment against the Defendants in an amount adequate to compensate them for the materials supplied, work performed, expenses incurred, lost profits, and all other damages deemed proper under the premises.” Record at 4. The trial court issued a general judgment in which it awarded the Moores $2,730 for labor, $2,013.64 for materials, and $55.27 for utility bills the Moores had paid, for a total award of $4,798.91. Olsson appeals.

DISCUSSION AND DECISION

When reviewing a general judgment, we do not reweigh evidence or reas *162 sess the credibility of witnesses. Instead, we consider only the evidence favorable to the judgment together with all reasonable inferences derivable therefrom. Union Fed. Sav. Bank v. INB Banking Co. Southwest (1991), Ind.App., 582 N.E.2d 426, 428 (citation omitted). We must affirm the trial court’s judgment if it can be sustained on any legal theory supported by the evidence, and we presume the judgment is based on findings supported by the evidence. Id.

In this instance, the trial court specified only that the Moores were to receive some $4,800 for the labor and materials they supplied; it offered no specific legal theory for its judgment. It is our task, then, to examine the record to determine whether a legal theory supports the trial court’s general judgment. Because this dispute arose in the context of the sale of real property, our inquiry begins by determining whether the Moores and Olsson entered an agreement for the transfer of Olsson’s home and land to the Moores.

Did a Contract for the Sale of the Home and Land Exist?

The evidence confirms the conclusion that no contract for the sale of the home and land existed. Unquestionably there was no written contract. 1 It is clear to us no oral contract existed, as well. All of the three principal parties (the two Moores and Olsson) testified regarding their understanding of the negotiations for the purchase of the house and land, and each version contrasted starkly from the others. Forrest Moore believed he was purchasing the home and 40 acres for $70,-000. Ben Olsson was more interested in selling the home and only five acres of land, and testified that the purchase price and acreage was unsettled. Nancy Moore testified the price changed so often she could not keep track of it. These minds did not “meet” as required by standard contract law. If the parties’ expressions fail to show agreement on essential terms of the purported agreement, there is no mutual assent and hence no contract. Goethals v. De Vos (1977), 174 Ind.App. 143, 366 N.E.2d 673, 674. The situation at the time of the fire was more akin to “an agreement to agree.”

Additionally, we note well that neither party has sought to transfer the property through the remedy of specific performance. The Moores’ complaint sought only to recover the value of the improvements they had made to the property, and that is all they seek now. The evidence amply supports the conclusion that no contract existed for the sale of the property. Given that no contract existed, the issue becomes who must bear the cost of the Moores’ destroyed improvements.

Did the Moores’ Improvements Confer a Benefit Upon Olsson?

The Moores argue their work conferred a benefit upon Olsson to the extent the value of Olsson’s property increased. Olsson responds by claiming he received no benefit from the Moores’ improvements, as they were destroyed by fire and never intended for his use in the first place. He argues he never offered to pay the Moores for their work and that the Moores never expected any payment from Olsson.

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

Olsson v. Moore, 590 N.E.2d 160, 1992 Ind. App. LEXIS 481, 1992 WL 73470 (Ind. Ct. App. 1992).

590 N.E.2d 160 (Olsson v. Moore) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

Related

Connie S. Landers v. Wabash Center, Inc.
983 N.E.2d 1169 (Indiana Court of Appeals, 2013)
Fiederlein v. Boutselis
952 N.E.2d 847 (Indiana Court of Appeals, 2011)
Coleman v. Coleman
949 N.E.2d 860 (Indiana Court of Appeals, 2011)
Dominiack Mechanical, Inc. v. Dunbar
757 N.E.2d 186 (Indiana Court of Appeals, 2001)
Wallem v. CLS Industries, Inc.
725 N.E.2d 880 (Indiana Court of Appeals, 2000)
Garage Doors of Indianapolis, Inc. v. Morton
682 N.E.2d 1296 (Indiana Court of Appeals, 1997)
City of Hammond v. Marina Entertainment Complex, Inc.
681 N.E.2d 1139 (Indiana Court of Appeals, 1997)
Wright v. Pennamped
657 N.E.2d 1223 (Indiana Court of Appeals, 1995)
Chesterfield Management, Inc. v. Cook
655 N.E.2d 98 (Indiana Court of Appeals, 1995)
Bright v. Kuehl
650 N.E.2d 311 (Indiana Court of Appeals, 1995)
Anderson v. Horizon Homes, Inc.
644 N.E.2d 1281 (Indiana Court of Appeals, 1995)
Ochoa v. Ford
641 N.E.2d 1042 (Indiana Court of Appeals, 1994)