Sylvester v. Frydenhoj Estates Corp.

47 V.I. 720, 2006 WL 1679573, 2005 U.S. Dist. LEXIS 42542
CourtDistrict Court, Virgin Islands
DecidedJune 8, 2006
DocketD.C. App. No. 2003-89
StatusPublished
Cited by2 cases

This text of 47 V.I. 720 (Sylvester v. Frydenhoj Estates Corp.) is published on Counsel Stack Legal Research, covering District Court, Virgin Islands primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Sylvester v. Frydenhoj Estates Corp., 47 V.I. 720, 2006 WL 1679573, 2005 U.S. Dist. LEXIS 42542 (vid 2006).

Opinion

MEMORANDUM OPINION

(June 8, 2006)

This case is an appeal from a two-day bench trial which determined that the appellee, Frydenhoj Estates Corporation [“FEC”] was entitled to an easement across the property of the appellant, Carol Sylvester [“Sylvester”].

I. FACTUAL BACKGROUND

On January 17,1992, FEC, acting through its President, Dale Michael, entered into a contract with Sylvester for the sale of parcel no. 37-10 Estate Frydenhoj, No. 3 Red Hook Quarter, for $36,000. [Appellee’s App. 8-9.] This parcel of land was one of several lots sold by FEC from a larger tract of land. [Id.] Sylvester made a down payment of $3,500 dollars and agreed to pay the balance of the contract, $32,5000, together [722]*722with interest at 11.5% per annum, in one hundred twenty equal monthly installments. [Appellee’s App. 9, 376-378; Appellant’s App. Ex. 4.]

Between January, 1992 and March, 1995 Sylvester made only sporadic payments, most for far less than the monthly amount specified in the contract. [Appellee’s App. 9-10.] By March, 1995 Sylvester had repaid $9,015 of the contract price for her parcel of land. [Id. at 222.] This amount did not cover the interest accrued on the loan or any of the principal. As of March 3,1995 Sylvester owed FEC $34,274.21.

In late 1994, Sylvester and other persons who had purchased lots in Estate Frydenhoj from FEC hired Attorney Karl Percell to obtain bank financing to help them pay off their mortgages. [Id. at 14.] During that same period, FEC became interested in purchasing a large parcel of land in the vicinity of the lot that it had previously sold to Sylvester and to two others. [Id.] FEC recognized, however, that in order to have ready access to the new lot, it would be beneficial to have an easement over three parcels of land, including Sylvester’s parcel. [Id. at 14,16.]

In order to obtain easements through the lots adjacent to the one it sought to buy, FEC proposed to reduce the balance on Sylvester’s mortgage, and the mortgages of two other land owners, in return for easements through their lands. The two other landowners subsequently entered into agreements with FEC and granted FEC easements in return for reduced purchase prices for their lots.

Attorney Percell, acting on behalf of Sylvester, ultimately negotiated with FEC to reduce the balance of Sylvester’s mortgage by approximately $7,000, and to cover $274.21 in closing costs. [Appellant’s App. Ex. 25.] On January 27, 1995 FEC wrote to Attorney Percell outlining the proposed agreement to reduce Sylvester’s mortgage in return for an easement across Sylvester’s property. Fredenhoj Estate Corp. v. Sylvester, Civil No. 546/1998, at *8 (Terr. Ct. April 15, 2003). On March 3, 1995, Sylvester closed on her new mortgage with the bank. [Appellant’s App. Ex. 7.] The closing statements with the Bank of Nova Scotia [“Scotiabank”] indicate that her mortgage was reduced to $27,000, down from the approximately $35,000 she previously had owed FEC. [Id. and Appellee’s App. 47, 54,179.]

After the closing, Sylvester fired Attorney Percell and refused to grant FEC its desired easement. In 1998, FEC brought suit against Sylvester, seeking specific performance, damages, and an order compelling Sylvester to grant FEC an easement. In a written opinion issued April 15, [723]*7232003 following a bench trial, the Superior Court2 found that “the reduction in the sale price was in consideration of [FEC] receiving an easement through [Sylvester’s] property.” [Appellant’s App. Ex. 1.] Accordingly, it held that there was an enforceable oral contract for the easement over Sylvester’s land, which Sylvester breached by failing to provide FEC with the easement. In order to “prevent an injustice,” the Superior Court awarded FEC an easement over Sylvester’s property. [Id.] Sylvester timely appealed this decision.

II. JURISDICTION AND STANDARD OF REVIEW

This Court has jurisdiction to review final judgments and orders of the Superior Court of the Virgin Islands. See The Omnibus Justice Act of 2005, Act No. 6730, § 54 (amending Act No. 6687 (2004) which repealed 4 V.I.C. §§ 33-40, and reinstating appellate jurisdiction in this Court);3 Revised Organic Act of 1954 § 23A; 48 U.S.C. § 1613a. The standard of review for the trial court’s conclusions of law is plenary. Saludes v. Ramos, 744 F.2d 992 (3d Cir. 1984). Findings of fact made by the Superior Court are not to be disturbed on appeal unless they are clearly erroneous. Lenhardt v. Richards, 17 V.I. 619 (3d Cir. 1980); T-Shirt World, Inc. v. Artland, Inc., 20 V.I. 147 (D.V.I. 1983). “[A] finding is ‘clearly erroneous’ when although there is evidence to support it, the reviewing court on the entire evidence is left with the definite and firm conviction that a mistake has been committed.” United States v. United States Gypsum Co., 333 U.S. 364, 395, 68 S. Ct. 525, 92 L. Ed. 746 (1948).

Sylvester argues that the Superior Court erroneously found that she and FEC entered into an oral contract. She argues that the alleged oral agreement for an easement is not enforceable because it was not memorialized in writing, as required by the statute of frauds.4 While FEC [724]*724acknowledges that no written agreement memorializes Sylvester’s granting it an easement, it urges that Sylvester’s part performance of the contract justifies enforcing the oral agreement.

III. ANALYSIS

Ordinarily, contracts for the sale of lands or interests in lands, including easements, are void unless the contract is in writing pursuant to the statute of frauds. See V.l. Code Ann. tit. 28 §§ 241(a)(2), 242, 244.5 However, the doctrine of part performance allows a party to avoid the consequences of a statute of frauds defense. DeCastro v. Stuart, 45 V.I. 591, 601, n.6 (D.V.I. App. Div. 2004); Fountain Valley Corp. v. Patrick Wells, 98 F.R.D. 679, 683-4, 19 V.I. 607 (D.V.I. 1983).

The doctrine of part performance operates to “prevent an inequity to a person who is induced or by acquiescence permitted to rely upon an oral agreement which agreement would normally be voided by the Statute of Frauds.” Henderson v. Resevic, 262 F. Supp. 36, 39, 6 V.I. 196 (D.V.I. 1967). Under the doctrine, if parties can show that part of an oral contract was performed, then the oral contract is taken out of the statute of frauds and becomes binding. See Island Block Corp. v. Jefferson Constr. Overseas, Inc., 349 F.2d 322, 325-26, 5 V.I. 243 (3d Cir. 1965) (noting that part performance, by delivery of a substantial amount of [725]*725contracted-for materials, took the oral contract out of the statute of frauds).

Courts apply the doctrine, of part performance in order “to prevent perjury and fraud, and to prevent parties from escaping their legal obligations.” Stelwagon Mfg. Co. v.

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Bluebook (online)
47 V.I. 720, 2006 WL 1679573, 2005 U.S. Dist. LEXIS 42542, Counsel Stack Legal Research, https://law.counselstack.com/opinion/sylvester-v-frydenhoj-estates-corp-vid-2006.