Smith v. Osmun

676 A.2d 781, 165 Vt. 545, 1996 Vt. LEXIS 34
CourtSupreme Court of Vermont
DecidedMarch 8, 1996
Docket94-527
StatusPublished
Cited by6 cases

This text of 676 A.2d 781 (Smith v. Osmun) is published on Counsel Stack Legal Research, covering Supreme Court of Vermont primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Smith v. Osmun, 676 A.2d 781, 165 Vt. 545, 1996 Vt. LEXIS 34 (Vt. 1996).

Opinion

Defendant John Osmun appeals a decision of the Addison Superior Court enforcing an agreement to settle a specific performance action brought by plaintiffs Gregory and Patricia Smith. Defendant claims that the court erred in finding that a settlement agreement existed, in finding that defendant’s former lawyer had authority to enter into a settlement agreement, and in assessing damages and prejudgment interest. We affirm in part and reverse in part.

Plaintiffs were living in a camp they constructed on defendant’s property in Starksboro. In November 1988, they brought an action to require defendant to specifically perform an alleged contract for sale of 3.2 acres on which the camp was constructed. Defendant denied the existence of the contract for sale and responded that plaintiffs were tenants who failed to pay their rent and who were notified to vacate in October 1988. Defendant sought a writ of possession by counterclaim. The underlying actions were never tried. Instead, plaintiffs moved to enforce a settlement agreement which they claimed was entered into between the parties. Eventually, after taking evidence, the court issued two decisions finding that a settlement agreement existed and enforcing it.

In the first decision, the court found that through an exchange of letters of their lawyers, the parties had agreed to a settlement under which plaintiffs would relinquish claim to the real estate and pay $1,500 in back rent and an amount for any damage to the real estate; defendant in turn would purchase the camp from plaintiffs for a price to be determined by an independent appraiser. The appraiser set the value of the camp at $13,700. The court found that defendant balked at complying with the settlement because he disagreed with the appraisal and not because he seriously disputed the existence of the settlement or the lawyer’s authority to consummate it.

In the second decision, the court again found the agreement valid and that defendant had breached it, specifically responding to defendant’s renewed argument that no agreement existed because defendant’s lawyer failed to include as a term that plaintiffs vacate immediately, as defendant instructed the lawyer to do; and that if an agreement existed, it necessarily included the term that plaintiffs vacate immediately, which they failed to do. The court accepted the appraiser’s value of the camp and awarded net damages of $11,450, plus interest on the amount running from December 1, 1989.

Defendant first argues that a finding that a letter of February 20, 1989 from plaintiffs ’ attorney contained the terms of the settlement is clearly erroneous. Defendant misconstrues the finding, which *546 states only that the letter of February 20 was “key” and ended the dispute. Elsewhere, the court found that the parties reached a resolution of the dispute in May of 1989, when the last letter was sent by defendant’s lawyer. Read in context, the finding about the key letter is not clearly erroneous.

We reach a similar conclusion with respect to a finding that defendant did not convey to his lawyer his view that the appraisal of the camp should be based on salvage value. The court found that defendant agreed to the appraisal, without tying the hands of the appraiser to a particular methodology whatever he thought the outcome of the appraisal might or should be. The evidence supports this finding, and we will not overturn it. See Pinewood Manor, Inc. v. Vermont Agency of Transp., 164 Vt. 312, 315, 668 A.2d 653, 656 (1995).

Defendant next claims that the exchange of letters did not create a settlement agreement because there was never an agreement on a set of specific terms and the terms plaintiffs claimed were vague and unenforceable. Specifically, defendant claims that there was no meeting of the minds on when plaintiffs would leave the property or, alternatively, the agreement was vague or incomplete on this point, and vague or incomplete on the question of whether plaintiffs would relinquish their claim to the land. The trial court concluded that the terms were fully stated in the May 17, 1989 letter from defendant’s attorney to plaintiffs’ attorney, there was a meeting of the minds on these terms, and these terms were not vague or incomplete.

There is no dispute about the law applicable to defendant’s claims. Before there is a contract, there must be initial assent to the terms. Milot v. Calkins, 150 Vt. 537, 538, 554 A.2d 260, 261 (1988). Vagueness and indefiniteness as to an essential contract term can preclude formation of an enforceable contract. Evarts v. Forte, 135 Vt. 306, 310, 376 A.2d 766, 769 (1977). We must affirm conclusions of law that are supported by findings and are consistent with the applicable law.

The trial court rejected defendant’s theory that plaintiffs’ immediate departure from the land was ever intended to be a contract term or, more broadly, that any departure date was made part of the agreement. * The findings support the court’s conclusion that there was a meeting of minds on the terms of the contract. Moreover, the absence of specification on the leaving date does not make the agreement vague or incomplete as to essential terms. Similarly, it was unnecessary to include a specific statement that plaintiffs made no further claim to the land because the settlement agreement necessarily had that consequence.

Next, defendant claims that his lawyer lacked authority to settle the litigation except with express terms that guaranteed plaintiffs’ immediate departure from the land and adopted defendant’s methodology for the appraisal. We agree with defendant that the settlement is valid only if defendant was found to have granted express authority to settle on those terms. See Plourde v. Smith, 151 Vt. 100, 102, 557 A.2d 883, 884 (1988); New England Educational Training Service, Inc. v. Silver Street Partnership, 148 Vt. 99, 104, 528 A.2d 1117, 1120 (1987). The court found, however, that defendant granted his lawyer express authority to settle.

In challenging the court’s analysis, defendant places great emphasis on his letter to his lawyer and the testimony of himself and his daughter. The letter described the concerns now raised as observations, and the court accepted the testimony of the lawyer who believed he had express authority to conclude a settle *547 ment on the terms stated in his May 17th letter. It was up to the trial court to resolve the conflicts in the evidence. The court’s conclusion that the lawyer had the express authority to settle on the terms stated is supported by the findings, which, in turn, are supported by the evidence. There is no error.

Defendant next claims that the damage award is erroneous, primarily because it is based on an appraisal which even the appraiser indicated was based on improper methodology. The issue centers on the permissible uses of the camp for valuation purposes.

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Bluebook (online)
676 A.2d 781, 165 Vt. 545, 1996 Vt. LEXIS 34, Counsel Stack Legal Research, https://law.counselstack.com/opinion/smith-v-osmun-vt-1996.