Ritchey v. Lewis

CourtCourt of Appeals of Kansas
DecidedDecember 6, 2024
Docket127045
StatusUnpublished

This text of Ritchey v. Lewis (Ritchey v. Lewis) is published on Counsel Stack Legal Research, covering Court of Appeals of Kansas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Ritchey v. Lewis, (kanctapp 2024).

Opinion

NOT DESIGNATED FOR PUBLICATION

No. 127,045

IN THE COURT OF APPEALS OF THE STATE OF KANSAS

PETER J. RITCHEY, Appellee,

v.

BILLY JO LEWIS, Appellant.

MEMORANDUM OPINION

Appeal from Shawnee District Court; TERESA L. WATSON, judge. Oral argument held October 15, 2024. Opinion filed December 6, 2024. Affirmed.

Bruce Alan Brumley, of Brumley Law Office, of Topeka, for appellant.

Christine Caplinger, of Caplinger Law, of Topeka, and Bryan W. Smith, of Smith Law Firm, of Topeka, for appellee.

Before COBLE, P.J., GARDNER, J., and CARL FOLSOM III, District Judge, assigned.

PER CURIAM: While living together as an engaged couple, Peter J. Ritchey and Billy Jo Lewis purchased a house and an adjacent, 40-acre property in separate transactions—Ritchey purchased the property and Lewis purchased the house. Lewis represented herself and Ritchey as the buyer's agent in these transactions. The couple later split up and Ritchey initiated a sale of the property to a third party, yet Lewis intervened. She placed a mechanics lien on the property and told Ritchey's title company that she had a right of first refusal on it. When the title company refused to issue Ritchey a title policy for the sale, he petitioned to quiet title to the property. Lewis filed several

1 counterclaims, including a claim of unjust enrichment. The district court denied Lewis' counterclaims and quieted title to Ritchey. Lewis appeals, arguing the district court applied an improper legal standard and ignored undisputed evidence in denying her unjust enrichment claim. Finding no reversible error, we affirm.

Factual and Procedural Background

Billy Jo Lewis and Peter J. Ritchey started dating in 2010, made the purchase that gives rise to this appeal in 2019, then split up in March 2021. During most of their relationship they lived together as an engaged couple. In 2012, Ritchey moved in with Lewis and her three children in their home on Lewis' 27-acre property in Auburn. Lewis owned that home and paid most of the expenses.

In 2019, Ritchey and Lewis decided to purchase a new home. They found a listing for a house on 10 acres and an adjacent 40-acre lot of unimproved land. Both properties were listed by one seller, who listed the properties in two ways: (1) the House and Land as one unit for $1,095,000; and (2) the House separately for $895,000. The sellers eventually made a third listing for the Land for $250,000.

Lewis and Ritchey decided to purchase the House and Land. Lewis did not want to buy the House without the Land and initially planned to buy both herself. But she later agreed with Ritchey that he would buy the Land, and she would buy the House in separate transactions. Lewis maintained a real estate license from her previous full-time career. She thus represented herself and Ritchey as the buyers' agent in completing the purchases of the House and Land. In this role, she negotiated prices for the properties based in part on Ritchey's ability to obtain sufficient financing for the Land.

Lewis initially negotiated a price of $750,000 for the House but Ritchey could not afford the $250,000 asking price for the Land. He was approved for a mortgage of

2 $120,000 and later obtained secondary financing for $30,000, some of which he secured by attaching as security and later selling a van that he co-owned with Lewis. Lewis thus negotiated with the seller's agent, Mary Froese, for a combined purchase price of $950,000 for the House and Land. Under this agreement, Lewis would pay $800,000 for the House and Ritchey would pay $150,000 for the Land.

Lewis prepared the real estate agreements for each sale. Ritchey checked a box in his contract stating an intent to enter a joint tenancy with a right of survivorship. He did not, however, list Lewis or any other person for this designation. And Ritchey's contract did not include a provision for a right of first refusal. That provision would have given Lewis the right, but not the duty, to buy the Land under the same terms for which Ritchey agreed to sell it to a third party. See Trear v. Chamberlain, 308 Kan. 932, 937, 425 P.3d 297 (2018). The holder of the right of first refusal gives up its chance to negotiate with the seller for a price lower than one the seller is willing to accept from a third party. 308 Kan. at 937. But Lewis claimed that before buying the Land, Ritchey verbally agreed that if he decided to sell the Land, Lewis would retain the right to buy it for the $150,000 price that Ritchey had paid for it. Because Lewis calls this agreement the right of first refusal, we do the same, understanding that this is a misnomer.

After closing on the House and Land, Lewis, Ritchey, and Lewis' children moved into the House and made some improvements to the Land. When Lewis and Ritchey split up in March 2021, Ritchey decided to sell the Land. He did not offer to sell the Land to Lewis and instead secured a third-party buyer who signed a purchase agreement for $250,000 in July 2021. But before the closing date for that sale, Lewis placed a mechanic's lien on the Land and notified Ritchey's title company that she had a right of first refusal on it. The title company then refused to issue the buyer a policy for the Land.

3 Pretrial Proceedings

Ritchey sued Lewis in November 2021, claiming rights to the Land and to Lewis' engagement ring. Ritchey petitioned the district court to cancel the mechanic's lien and to quiet title to the Land. His petition also claimed slander of title, abuse of process, and tortious interference with a contract. Ritchey claimed that the Land was titled and mortgaged in his name only, that Lewis had not given proper notice of the lien, and that he had not given Lewis a right of first refusal.

Lewis counterclaimed for damages, alleging breach of her right of first refusal based on contract, promissory estoppel, and unjust enrichment. She asserted that she would not have purchased the House without the Land and that she paid a higher price for the House for this reason and to help Ritchey. She also alleged that she owned equipment and paid for materials that Ritchey had damaged and/or used to improve the Land. She asserted that she did these things based on her belief that she and Ritchey would get married and keep the House and Land together. Lewis asked for specific performance of the agreement to sell her the property for $150,000. She alternatively requested monetary damages of $100,000 plus an amount that Lewis alleged she contributed to the down payment for the original purchase.

Ritchey later moved for summary judgment on several claims. Lewis voluntarily dismissed the mechanic's lien, and the district court granted summary judgment on Ritchey's claims related to the engagement ring. But the district court denied Ritchey's motion as it related to Lewis' counterclaims challenging the title to the Land. The district court explained that Lewis had raised material questions of fact, mostly in terms of her equitable defenses, sufficient to prevent summary judgment.

4 Trial

A three-day trial ensued. Ritchey testified and presented testimony from Froese, a representative of Ritchey's title company (T.J. Lorson), a lender from the bank that the parties used to finance their purchases (Anne Weigel), an appraiser (Scott Wartman), and a construction worker who helped make certain improvements to the Land (Juhn Bueltel). Their testimonies showed that during the purchase negotiations, Froese believed that Lewis and Ritchey had made separate offers for the House and the Land.

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Ritchey v. Lewis, Counsel Stack Legal Research, https://law.counselstack.com/opinion/ritchey-v-lewis-kanctapp-2024.