Roe v. Austin

433 P.3d 569, 246 Ariz. 21
CourtCourt of Appeals of Arizona
DecidedNovember 29, 2018
DocketNo. 2 CA-CV 2017-0194
StatusPublished
Cited by20 cases

This text of 433 P.3d 569 (Roe v. Austin) is published on Counsel Stack Legal Research, covering Court of Appeals of Arizona primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Roe v. Austin, 433 P.3d 569, 246 Ariz. 21 (Ark. Ct. App. 2018).

Opinion

STARING, Presiding Judge:

¶ 1 Valer Clark (formerly Valer Austin), on behalf of herself and the entities she owns and controls, appeals from the judgment entered after a jury trial, in which the trial court awarded Dan and Myriam Roe a life estate in a house and surrounding property and concluded that the divorce settlement agreement ("Settlement") entered between Valer and Josiah Austin did not require Josiah to defend and indemnify Valer against the Roes' life estate claim. For the reasons that follow, we reverse the judgment awarding a life estate to the Roes, as well as the judgment that Josiah is not required to defend and indemnify Valer.

Factual and Procedural Background

¶ 2 The parties' disputes stem from a life estate claim brought by the Roes against Valer, Cuenca Los Ojos Foundation Trust, El Coronado Ranch & Cattle Co. L.L.C., and El Coronado Ranch L.L.C. (collectively, "Valer"),1 and the interpretation of an indemnification provision in the Settlement. We view the facts in the light most favorable to upholding the jury verdicts. Crackel v. Allstate Ins. Co. , 208 Ariz. 252, ¶ 3, 92 P.3d 882 (App. 2004).

¶ 3 Valer and Josiah divorced in 2015, several years after the Roes had moved into a house on El Coronado Ranch ("Ranch"), *572which Valer and Josiah owned jointly. Valer obtained sole ownership of the Ranch pursuant to the terms of the Settlement. She subsequently demanded the Roes vacate the Ranch, and the Roes filed an action for declaratory judgment claiming a life estate in the house and surrounding property on the Ranch.

¶ 4 Valer asserted the statute of frauds as a defense to the Roes' claim, arguing there was no written contract evincing the creation of a life estate. She also filed a counterclaim to quiet title to the Ranch. In addition, Valer filed a third-party complaint against Josiah, alleging the Settlement required him to defend and indemnify her against the Roes' life estate claim.

¶ 5 Valer subsequently moved for summary judgment on the Roes' life estate claim and on her indemnification claim against Josiah. The trial court denied summary judgment on both claims, concluding issues of fact existed that required resolution at trial. At trial, pursuant to Rule 50, Ariz. R. Civ. P., Valer moved for judgment as a matter of law on the Roes' life estate claim, and the court denied her motion. After trial, the jury awarded the Roes a life estate in the house on the Ranch and found Josiah had not breached the indemnification provisions of the Settlement. Valer renewed her motions for judgment as a matter of law on the Roes' life estate claim and also moved for judgment as a matter of law on her third-party indemnification claim against Josiah. The court denied the motions and ultimately entered judgment in favor of the Roes, granting them a life estate in the house and 214 surrounding acres on the Ranch, and in favor of Josiah on the indemnification claim.

¶ 6 Valer appealed, and we have jurisdiction pursuant to A.R.S. §§ 12-120.21(A)(1) and 12-2101(A)(1).

Discussion

Statute of Frauds

¶ 7 Valer argues the statute of frauds bars the Roes' life estate claim because it is based on an oral contract and, therefore, the trial court erred when it denied her motions for judgment as a matter of law. In its denial of the Rule 50 motion Valer made at trial, the court concluded the alleged acts of part performance by the Roes "raise a question for the trier of fact as to whether [the Roes'] acts are unequivocally referable to the alleged agreement." Subsequently, when denying Valer's renewed motions, the court concluded it "d[id]n't think any other explanation is plausible.... [e]xcept a life estate." We review a trial court's ruling on a motion for judgment as a matter of law de novo. Monaco v. HealthPartners of S. Ariz. , 196 Ariz. 299, ¶ 6, 995 P.2d 735 (App. 1999).

¶ 8 Arizona's statute of frauds, A.R.S. § 44-101, in relevant part provides:

No action shall be brought in any court in the following cases unless the promise or agreement upon which the action is brought, or some memorandum thereof, is in writing and signed by the party to be charged, or by some person by him thereunto lawfully authorized:
....
6. Upon an agreement for leasing for a longer period than one year, or for the sale of real property or an interest therein. Such agreement, if made by an agent of the party sought to be charged, is invalid unless the authority of the agent is in writing, subscribed by the party sought to be charged.

"The statute of frauds is by its terms absolute, providing that '[n]o action' can be brought on oral contracts for the conveyance of land." Owens v. M.E. Schepp Ltd. P'ship , 218 Ariz. 222, ¶ 14, 182 P.3d 664 (2008).

¶ 9 Arizona, however, recognizes a "part performance" exception to the statute of frauds, excusing the writing requirement when acts of part performance are "unequivocally referable" to the alleged agreement. Id . ¶¶ 14-18 (quoting Restatement (Second) of Contracts § 129 cmt. d (1981) ). The exception thus "requires that any alleged act of part performance be consistent only with the existence of a contract and inconsistent with other explanations such as ongoing negotiations or an existing relationship between the parties." Owens , 218 Ariz. 222, ¶ 18, 182 P.3d 664 (emphasis added) (citation omitted). And, because the statute of frauds evinces a "clear *573legislative prohibition against enforcement of an oral agreement for the conveyance of land[, t]he requirement that the alleged acts of part performance be unequivocally referable to the alleged contract assures that only in rare circumstances will courts exempt oral agreements from the plain terms of the statute." Id. ¶ 24.

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Bluebook (online)
433 P.3d 569, 246 Ariz. 21, Counsel Stack Legal Research, https://law.counselstack.com/opinion/roe-v-austin-arizctapp-2018.