Tiedemann v. Cozine

688 A.2d 1056, 297 N.J. Super. 579, 1997 N.J. Super. LEXIS 63
CourtNew Jersey Superior Court Appellate Division
DecidedFebruary 3, 1997
StatusPublished
Cited by4 cases

This text of 688 A.2d 1056 (Tiedemann v. Cozine) is published on Counsel Stack Legal Research, covering New Jersey Superior Court Appellate Division primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Tiedemann v. Cozine, 688 A.2d 1056, 297 N.J. Super. 579, 1997 N.J. Super. LEXIS 63 (N.J. Ct. App. 1997).

Opinion

The opinion of the court was delivered by

COSTELLO, J.S.C.,

(temporarily assigned).

Defendants appeal from a decision by the trial judge granting summary judgment to the plaintiffs. We reverse and remand.

Defendants William and Mildred Cozine were the owners of a vacant lot located in Chester Township. On March 13, 1995 they [581]*581entered into a Contract of Sale with the plaintiffs Patrick J. and Mary Tiedemann. The .contract contained the following provisions:

22. Attorney Review:
3. Notice of Disapproval:
If an attorney for the Buyer or the Seller reviews and disapproves of the Contract, the Attorney must notify the Realtor(s) and the other party named in this Contract within the three-day period. Otherwise this Contract will be legally binding as written. The Attorney must send the notice of disapproval to the Realtor(s) by certified mail, by telegram, or by delivering it personally.
26. Additional Contractual Provisions, if any: Subject to all of the following: ... 6. Obtaining Building Permit; ...

Rider

3. All notices required under this Contract may be given by FAX transmission from the Attorney for the noticing party to the Attorney for the noticed party, which shall be confirmed in writing promptly thereafter.
4. Buyer and/or seller are not required to apply for a variance in the event that it is required by a municipality.

The $15,000 deposit was paid to the broker by the plaintiffs. The date set in the rider for meeting any contingencies was August 1, 1995. There was no express time of the essence clause.

On or about April 12, 1995 the buyers’ attorney was advised by municipal officials that a variance was necessary. He communicated this to the sellers’ attorney and indicated he needed to have assurances that the contingency date would be extended to September 1,1995 and that the sellers would cooperate in obtaining a variance. The sellers’ attorney verbally agreed. The changes were never reduced to a signed writing.

Thereafter the buyers sought to cancel the contract by letter dated June 6, 1995 on the ground that the Township required a variance to build. The seller then proceeded to apply for the variance. On August 1, 1995, the sellers were advised by their specially retained counsel that the Township did not in fact require a variance. The buyers then again sought on August 2, 1996 to cancel on the ground that the building permit had not been obtained and that the August 1,1995 contingency date had passed.

[582]*582The trial court granted summary judgment holding that (1) the statute of frauds barred the oral amendment and (2) since time was of the essence and the contingency of a building permit had not been satisfied by August 1, 1995, either cancellation was valid. We disagree with these conclusions.

The statute of frauds at the relevant time read in part as follows:

No action shall be brought upon any of the following agreements or promises, unless the agreement or promise upon which such action shall be brought or some memorandum or note thereof, shall be in writing, and signed by the party charged therewith, or some other person thereunto by him lawfully authorized:
d. A contract for sale of real estate, or any interest in or concerning the same.
[N.J.S.A 25:1-5.1]

The issue of whether the statute of frauds will bar an oral modification of a contract required to be in writing has been the subject of sparse discussion in reported New Jersey cases. The last mention of the issue appears to be in Willow Brook Recreation Center, Inc. v. Selle, 96 N.J.Super. 358, 233 A.2d 77 (App.Div.1967), certif. den. 51 N.J. 187, 238 A.2d 473 where this court took note of the principle “... that oral agreements extending the time for performance of contracts within the Statute of Frauds are valid.” Id. at 364, 233 A.2d 77. The court there determined that the oral modification was for more than the time of performance or the satisfaction of a condition. Id. at 365, 233 A.2d 77. See also Schlecter v. Hollander, 11 N.J.Super. 236, 78 A.2d 279 (App.Div.1951) and Williams v. Sanacore, 11 N.J.Super. 51, 78 A.2d 91 (App.Div.1951). We determine that the statute of frauds does not bar an oral modification of a contract required to be in writing when, as here, the modification does not affect a time of the essence provision.

This is in accord not only with the dictum in Willow Brook, supra, but also with substantial out of state authority. See Colorado Investment Services, Inc. v. Hager, 685 P.2d 1371 (Colo.Ct.App.1984) (allowed even when oral modification affects a time of the essence clause); Kelly v. Hodges, 811 P.2d 48 (Idaho [583]*583Ct.App.1991); Rex Lumber Co. v. Acton Block Co., Inc., 29 Mass.App. 510, 562 N.E.2d 845 (1990); Empire Properties, Inc. v. Equireal, Inc., 449 Pa.Super. 476, 674 A.2d 297 (1996); Berube v. Montgomrery, 463 A.2d 158 (R.I.1983); Joiner v. Elrod, 716 S.W.2d 606 (Tex.Ct.App.1986); and North v. Simonini, 142 Vt. 482, 457 A.2d 285 (1983). The rationale for the distinction is that the statute of frauds requires the contract to be in writing, but that performance of that contract is not within the statute. But see Kammert Bros. Enterprises, Inc. v. Tanque Verde Plaza Co., 4 Ariz.App. 349, 420 P.2d 592 (1966); Young v. Brookshire Village Properties, 101 Ohio App.3d 458, 655 N.E.2d 1329 (1995), certif. den. 73 Ohio St.3d 1413, 651 N.E.2d 1311 (1995); and Wardley Corp. Better Homes and Gardens v. Burgess, 810 P.2d 476 (Utah Ct.App.1991).

The buyers’ claim that the oral agreement did more than extend time limits does not withstand scrutiny.

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Bluebook (online)
688 A.2d 1056, 297 N.J. Super. 579, 1997 N.J. Super. LEXIS 63, Counsel Stack Legal Research, https://law.counselstack.com/opinion/tiedemann-v-cozine-njsuperctappdiv-1997.