Platts v. Arney

278 P.2d 657, 46 Wash. 2d 122, 1955 Wash. LEXIS 445
CourtWashington Supreme Court
DecidedJanuary 8, 1955
Docket32850
StatusPublished
Cited by28 cases

This text of 278 P.2d 657 (Platts v. Arney) is published on Counsel Stack Legal Research, covering Washington Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Platts v. Arney, 278 P.2d 657, 46 Wash. 2d 122, 1955 Wash. LEXIS 445 (Wash. 1955).

Opinion

Weaver, J.

This appeal presents two questions: (1) Does the contract, upon which plaintiff sues for damages for an alleged breach, fail to meet the requirements of the statute of frauds; and (2) is the expense of a pretrial deposition of a witness (not a party to the action), taken for the purpose of discovery, taxable as costs, when the deposition is only used at trial in the cross-examination of the witness?

We will refer to Willard G. Platts and W. G. Platts, Inc., a Washington corporation, as plaintiff; and to C. F. Arney and Betty E. Arney, his wife, as defendant.

June 21, 1952, plaintiff and defendant entered into an “Exchange Contract.” Each party owned three parcels of property subject to the exchange.

Plaintiff owned: (1) a residence to be transferred to defendant by real-estate contract; (2) a fuel yard and business consisting of real and personal property, including delivery trucks and a trade name, to be transferred to defendant by a combined real-estate and conditional sales contract; and (3) an inventory of fuel valued at eighteen thousand dollars, to be transferred to defendant by bill of sale. A value was assigned to each parcel of property, all of which were to be free of encumbrances. The values totaled $113,000.

Defendant owned: (1) certain real property, subject to a lease to a third party, which property was to be deeded and the lease assigned to plaintiff; (2) a trailer court to be deeded to plaintiff; and (3) a chattel mortgage and a conditional sales contract, of the present value of $14,834.37, to be assigned to plaintiff. Defendant’s property was valued at $49,834.37. It was subject to a mortgage of $8,137.

*124 The difference between the valuations was to be represented by the contracts of sale (providing for periodic payments) wherein plaintiff was vendor and defendant vendee.

The exchange contract designates a “closing agent,” who was authorized to order reports preliminary to title policies. In it, plaintiff and defendant agreed

“. . . to deliver to the closing agent properly executed instruments to effectuate his agreement ...”

The closing agent was authorized to make the exchange of properties by delivery of the necessary instruments on the first day of August, 1952.

The exchange contract, which is signed and acknowledged by all of the necessary parties, is silent as to many of the terms to be embodied in the future contracts we have described. However, it designates the purchase prices, the down payments to be credited, the rate of monthly payments, and the interest on the deferred balances.

Before we can decide whether the transaction is within the purview of the statute of frauds, additional facts must be considered.

Pursuant to the agreement, the plaintiff:

(a) Executed and acknowledged a real-estate contract for the residence property described in the exchange contract. This contract is signed by defendant.

(b) Executed and acknowledged a real-estate contract for the real property occupied by the fuel yard, as described in the exchange contract. This contract is also signed by defendant. Instead of making a conditional sales contract of the fuel yard personal property, he executed and acknowledged a bill of sale to defendant of this personal property, including the trade name under which he did business. In return, defendant executed a promissory note to plaintiff which was secured by a chattel mortgage, covering the property described in plaintiff’s bill of sale to him.

(c) Executed and acknowledged a bill of sale to defendant of a “miscellaneous fuel inventory of the guaranteed wholesale cost of . . . $18,000 ...”

(d) Furnished a certified copy of the minutes of a special joint meeting of stockholders and trustees of W. G. *125 Platts, Inc., a corporation, authorizing the officers of the corporation to execute the documents which required corporate signatures.

On the other hand, defendant:

(a) Executed and acknowledged two deeds to plaintiff of the real property as described in the exchange contract.

(b) Executed and acknowledged an assignment to plaintiff of his (defendant’s) interest in the lease, chattel mortgage, and conditional sales contract, as described in the exchange contract.

The court found that each of the instruments which we have described was executed by the parties in the office of the closing agent on July 17, 1952, and was retained by the closing agent until introduced in evidence at the trial of this action. There is no claim that any of the instruments are insufficient, except as hereinafter noted.

The real-estate contract, by which the real property occupied by the fuel yard was to be transferred to defendant, described five and one-half lots “in Block 293, Capital Addition to the City of Yakima.” This contract was signed by both parties.

Just prior to August 1, 1952, it was discovered that one lot and one half of another, although correctly located in Block 293, were in “Kers Addition to North Yakima (now Yakima)” instead of in the Capital addition of the city.

Thereupon, the plaintiff executed and acknowledged another real-estate contract, upon the same printed form, in which the description was corrected. This contract was placed with the closing agent, but not signed by defendant.

The closing agent advised the parties to meet in Yakima at plaintiff’s office on August 1, 1952, so that the various instruments of title and possession of the properties might be delivered.

July 31, 1952, defendant notified plaintiff and the closing agent that he rescinded the exchange contract because of plaintiff’s failure “to comply with the terms and provisions thereof.”

August 21, 1952, plaintiff filed this action for damages for breach of contract. Defendant answered, pleading eight *126 separate affirmative defenses. The trial court made no findings or conclusions on the various issues presented, except to conclude:

“That the ‘Exchange Contract’ (Exhibit ‘A’) was an unenforceable agreement for the reason that it was too indefinite and did not comply with the Statute of Frauds.”

Plaintiff appeals from a judgment dismissing his action.

For the purpose of this opinion, we accept defendant’s argument and conclusion (adopted by the trial court) that the exchange contract of June 21, 1952, standing alone, is but a contract to enter into future contracts, the terms of which are not determined; and, hence, is indefinite, uncertain, and unenforcible. Hubbell v. Ward, 40 Wn. (2d) 779, 246 P. (2d) 468 (1952); Keys v. Klitten, 21 Wn. (2d) 504, 151 P. (2d) 989 (1944).

Subsequent to the execution of the exchange contract, the parties prepared, signed, and acknowledged every additional contract necessary to complete the transaction described in the exchange contract. Thus, it became definite and certain in all material matters.

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Bluebook (online)
278 P.2d 657, 46 Wash. 2d 122, 1955 Wash. LEXIS 445, Counsel Stack Legal Research, https://law.counselstack.com/opinion/platts-v-arney-wash-1955.