Schumacher v. Ihrke

469 N.W.2d 329, 1991 Minn. App. LEXIS 396, 1991 WL 65327
CourtCourt of Appeals of Minnesota
DecidedApril 30, 1991
DocketC3-90-2178
StatusPublished
Cited by27 cases

This text of 469 N.W.2d 329 (Schumacher v. Ihrke) is published on Counsel Stack Legal Research, covering Court of Appeals of Minnesota primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Schumacher v. Ihrke, 469 N.W.2d 329, 1991 Minn. App. LEXIS 396, 1991 WL 65327 (Mich. Ct. App. 1991).

Opinion

OPINION

HUSPENI, Judge.

Appellants challenge the trial court’s grant of summary judgment in favor of respondents arising from an action for tor-tious interference with contract. We affirm.

FACTS

Appellants Bruce and Susan Ihrke and respondents Ken and Mary Schumacher *331 are neighboring farmers in Wabasha County, Minnesota. Elaine Parker owned 80 acres of land (Parker property) adjacent to the property owned by these two parties. Elaine Parker’s son, Russell, works part time for appellants and full time for a feed company in Plainview, Minnesota.

In 1986, Farm Credit Bank (FCB) foreclosed upon the Parker property. FCB held a foreclosure sale in May 1986; the statutory redemption period expired in May 1987.

In August 1988, FCB offered the Parker property for sale and appellants and respondents submitted sealed bids. Respondents submitted the highest bid of $56,000, In light of the competitive bidding, FCB decided to hold an auction for the land. FCB notified appellants and respondents of the date of the public auction. Prior to any bidding at the auction, FCB informed all parties present of Elaine Parker’s statutory right of first refusal to purchase the property according to Minn.Stat. § 500.24, subd. 6 (1988).

At the auction, respondents were the highest bidders at $66,000 1 and signed a purchase agreement for that amount which stated that the purchase was subject to the former owner’s right of first refusal.

On September 26, 1988, FCB accepted and approved respondents’ purchase offer, but no money changed hands. On October 4, 1988, FCB sent Elaine Parker notice of her right of first refusal. A few days later appellants learned from Russell Parker that Elaine Parker had received her right of first refusal.

On or about October 10, 1988, appellants and Russell Parker met with Elaine Parker at her house. They decided to meet with appellants’ attorney to determine how, if possible, appellants could acquire the Parker property through Elaine Parker’s right of first refusal.

On October 25, 1988, appellants, Russell Parker and Elaine Parker met with appellants’ attorney in his office. The attorney explained that after Elaine Parker exercised her right of first refusal, she would then have the right to sell to her son and her son could then sell to whomever he wished. When Elaine Parker decided to conduct such a transaction, appellants’ attorney immediately sent a letter exercising Elaine Parker’s right of first refusal. On November 1, 1988, appellants’ attorney sent to FCB a remittance of $64,574.52 on behalf of Elaine Parker. That same day, Elaine Parker signed a warranty deed conveying the 80 acres to her son. On November 5, 1988, Russell Parker signed a deed conveying the property to the appellants. These last two sales were for $64,574.52 each. However, no monies changed hands other than the initial $64,574.52, which appellants provided to Elaine Parker for her exercise of the right of first refusal.

Respondents brought an action alleging that appellants interfered with respondents’ contract to purchase the Parker property from FCB. Both parties moved for summary judgment and the trial court granted respondents’ motion. The court ordered respondents to pay appellants $64,-574.52 (the amount appellants paid for the property); that upon receipt of this sum, appellants were to transfer the property to the respondents; that any and all liens or encumbrances created by appellants against the real estate be removed; and that appellants pay respondents $690.56 for costs.

ISSUE

Did the trial court err in granting summary judgment in favor of the respondents based on intentional interference with contract?

ANALYSIS

On appeal from summary judgment, this court must determine whether the trial court erred in applying the law and whether any genuine issues of material fact exist. Harbal v. Federal Land Bank of St. Paul, 449 N.W.2d 442, 446 (Minn. *332 App.1989), pet. for rev. denied (Minn. Feb. 21, 1990). “Statutory construction is a question of law, subject to de novo review by [the court of appeals].” In re Copeland, 455 N.W.2d 503, 506 (Minn.App. 1990), pet. for rev. denied (Minn. July 31, 1990).

The trial court found that, as a matter of law, respondents established the following elements of interference with contract: (1) the existence of a contract; (2) the alleged wrongdoer’s knowledge of the contract; (3) an intentional interference with the contract (4) without justification; and (5) damages. See Royal Realty Co. v. Levin, 244 Minn. 288, 292, 69 N.W.2d 667, 671 (1955).

“Interference with contract” * * * includes “any act injuring or destroying persons or property which retards, makes more difficult, or prevents performance, or makes performance of a contract of less value to the promisee.”

Id. at 291 n. 5, 69 N.W.2d at 671 n. 4, quoted in Aslakson v. Home Sav. Ass’n, 416 N.W.2d 786, 788 (Minn.App.1987).

Appellants challenge the trial court’s conclusions on each element of intentional interference with contract.

1.Existence of a contract

Appellants contend that the respondents’ contract with FCB to purchase the Parker property only existed if Elaine Parker did not exercise her right of first refusal. See Malevich v. Hakola, 278 N.W.2d 541, 544 (Minn.1979). We disagree.

Respondents and the bank were both bound to complete the transfer of the Parker property unless Elaine Parker exercised her right of first refusal. There were no conditions precedent that needed to be met before a contract came into being. Tortious interference with contract concerns interference “which * * * prevents performance * * * of a contract.” Royal Realty, 244 Minn, at 291 n. 5, 69 N.W.2d at 671 n. 4. Appellants’ interference prevented the contractually-agreed-upon transfer of the property from FCB to respondents. The trial court correctly ruled that a contract existed between respondents and FCB.

2. Wrongdoer’s knowledge of the contract

Appellants attended the auction where respondents successfully bid for the property. Appellants then sought an attorney’s advice for a means to use Elaine Parker’s right of first refusal to obtain the Parker property. The appellants were clearly aware of the contract.

3. Intentional interference

Appellants argue that they intended to acquire the Parker property from Russell Parker, not to interfere with the contract between respondents and FCB.

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Cite This Page — Counsel Stack

Bluebook (online)
469 N.W.2d 329, 1991 Minn. App. LEXIS 396, 1991 WL 65327, Counsel Stack Legal Research, https://law.counselstack.com/opinion/schumacher-v-ihrke-minnctapp-1991.