Randy L. Nelson v. Randall G. Berg

CourtCourt of Appeals of Wisconsin
DecidedMay 11, 2023
Docket2022AP000031
StatusUnpublished

This text of Randy L. Nelson v. Randall G. Berg (Randy L. Nelson v. Randall G. Berg) is published on Counsel Stack Legal Research, covering Court of Appeals of Wisconsin primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Randy L. Nelson v. Randall G. Berg, (Wis. Ct. App. 2023).

Opinion

COURT OF APPEALS DECISION NOTICE DATED AND FILED This opinion is subject to further editing. If published, the official version will appear in the bound volume of the Official Reports. May 11, 2023 A party may file with the Supreme Court a Sheila T. Reiff petition to review an adverse decision by the Clerk of Court of Appeals Court of Appeals. See WIS. STAT. § 808.10 and RULE 809.62.

Appeal No. 2022AP31 Cir. Ct. No. 2020CV277

STATE OF WISCONSIN IN COURT OF APPEALS DISTRICT IV

RANDY L. NELSON,

PLAINTIFF-APPELLANT-CROSS-RESPONDENT,

V.

RANDALL G. BERG AND DEBORAH A. BERG,

DEFENDANTS-RESPONDENTS-CROSS-APPELLANTS.

APPEAL and CROSS-APPEAL from judgments of the circuit court for Jefferson County: WILLIAM F. HUE, Judge. Affirmed.

Before Fitzpatrick, Graham, and Nashold, JJ.

Per curiam opinions may not be cited in any court of this state as precedent

or authority, except for the limited purposes specified in WIS. STAT. RULE 809.23(3). No. 2022AP31

¶1 PER CURIAM. Randy Nelson appeals the circuit court’s judgment of eviction in favor of Randall and Deborah Berg, and he challenges the court’s earlier dismissal of a portion of his complaint against the Bergs. The Bergs cross- appeal the circuit court’s damages award in favor of Nelson. For the reasons explained below, we affirm.

BACKGROUND

¶2 This case arises out of a real estate transaction between Nelson and the Bergs, who were neighbors. Nelson owned and lived on a 42-acre agricultural property that included a farmhouse and outbuildings. The Bergs offered to purchase the property in 2015, and Nelson accepted the Bergs’ offer. The transaction that followed consisted of several separate documents that had been prepared by legal counsel, and that the parties executed that spring. These documents included a post-closing “occupancy agreement,” which allowed Nelson to continue to occupy the farmhouse, and also an “option-to-purchase agreement,” which gave Nelson a two-year option to repurchase the farmhouse and four acres under specified terms, including payment of a $50,000 purchase price.

¶3 The dispute that is the subject of this appeal arose in 2020. At that time, the Bergs sent Nelson a letter that purported to “non-renew” what they characterized as Nelson’s “lease” on the farmhouse. Nelson filed suit against the Bergs seeking various forms of relief. In his complaint, which we describe in greater detail below, Nelson took the position that he continued to have an option to purchase the farmhouse and four acres, and that he had almost finished paying the purchase price. Resolution of this dispute hinges on the various documents comprising the 2015 transaction and the complaint’s allegations about the actions

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the parties took after they executed those documents, as alleged in Nelson’s complaint, both of which we now describe in some detail.

¶4 We begin with the farm offer to purchase agreement (the “offer”). Randall Berg executed the offer on March 6, 2015, and Nelson accepted it. Pursuant to the offer’s terms, the sale was to close in March, but the parties later amended the offer by adding Deborah Berg as a buyer and moving the closing date to April 10. At closing, the parties executed the two agreements mentioned above: the occupancy agreement and the option-to-purchase agreement.

¶5 The occupancy agreement granted Nelson the right to occupy the farmhouse and surrounding acreage for two years following the closing. Under its terms, Nelson agreed to pay the Bergs $500 a month, and he was responsible for all repairs and maintenance of the premises. The occupancy agreement specified that it was not creating a landlord-tenant relationship and was not subject to the provisions of the Wisconsin statutes and administrative code that govern such relationships.

¶6 Turning to the option-to-purchase agreement, as mentioned above, that agreement gave Nelson an option to repurchase the farmhouse and four surrounding acres for $50,000. Pursuant to its terms, Nelson had to exercise the option in writing no later than April 10, 2017: “This Option may only be exercised if [Nelson] delivers written notice to [the Bergs] no later than midnight April 10, 2017 unless extended below.” The parties struck language from the form agreement that would have allowed Nelson to extend the initial option term by paying a specified sum. The option-to-purchase agreement also specified that the buy-back transaction “is to be closed no later than April 10, 2017 … unless

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otherwise agreed by the Parties in writing,” and that “‘Time is of the Essence’” as to the deadlines for exercising the option and closing the buy-back transaction.

¶7 The option-to-purchase agreement cross-referenced the occupancy agreement which, as explained above, provided that Nelson would pay the Bergs $500 each month to occupy the premises. The parties struck language from the form option-to-purchase agreement that would have credited these occupancy payments towards the $50,000 purchase price. Specifically, the stricken language provided: “In the event that this Option is timely exercised, $___ of each monthly rent payment of $___ shall be applied to the purchase price while the balance shall be deemed solely rent that is retained by the seller.” (Quoted text stricken in original.)

¶8 The option-to-purchase agreement also contained a merger clause, which provided that the written agreement “contains the entire agreement … regarding the transaction. All prior negotiations and discussions have been merged into this Option.”

¶9 The closing took place as scheduled on April 10, 2015. Then, less than one month later, the parties signed a standard form lease agreement (the “lease”) that conflicted in some ways with the post-closing occupancy agreement. According to its terms, the lease would run until April 30, 2016, and Nelson would pay the Bergs $500 in rent each month to occupy the farmhouse.1 The lease did not specifically reference the occupancy agreement and, unlike the occupancy

1 The parties added a handwritten provision to the lease that provided: “If full rent is more than 29 days late, offer to purchase the home and buildings with 4 surrounding acres is void. Note: Offer to Purchase expires 4-2017.”

4 No. 2022AP31

agreement, the lease did not provide that Nelson was responsible for all repairs and maintenance of the premises.

¶10 One year later on May 1, 2016, the parties signed a lease renewal agreement. The renewal agreement incorporated the terms of the prior lease, except that it would expire on April 30, 2017.

¶11 During the two-year term of the option-to-purchase agreement, Nelson made timely payments each month to the Bergs. The option granted by the written option-to-purchase agreement expired on April 10, 2017. It is undisputed that Nelson did not exercise his option, and that the parties did not execute any written extension of the option. It is also undisputed that the lease renewal expired on April 30, 2017, and the parties did not execute another lease renewal or any other document to govern their relationship.

¶12 Between 2017 and 2020, Nelson continued to live in the farmhouse, occupy the four surrounding acres, and make monthly payments to the Bergs. The Bergs increased his monthly payments from $500 to $600, and then to $700.

¶13 The Bergs sent the “notice of non-renewal” to Nelson on July 15, 2020. According to the notice, the “[o]riginal written lease ended on April 30, 2017” and the parties “mutually agreed … to a verbal month to month lease going forward.” The notice provided that, effective August 31, 2020, the Bergs would not be renewing Nelson’s lease, and it directed Nelson to vacate the farmhouse by that date.

¶14 Nelson filed a complaint, which he subsequently amended.

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Randy L. Nelson v. Randall G. Berg, Counsel Stack Legal Research, https://law.counselstack.com/opinion/randy-l-nelson-v-randall-g-berg-wisctapp-2023.