Ward v. Williams

118 S.W.3d 513, 354 Ark. 168, 2003 Ark. LEXIS 483
CourtSupreme Court of Arkansas
DecidedSeptember 25, 2003
Docket02-1380
StatusPublished
Cited by47 cases

This text of 118 S.W.3d 513 (Ward v. Williams) is published on Counsel Stack Legal Research, covering Supreme Court of Arkansas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Ward v. Williams, 118 S.W.3d 513, 354 Ark. 168, 2003 Ark. LEXIS 483 (Ark. 2003).

Opinions

Robert L. Brown, Justice.

The appellants, Harold L. “Bud” Ward and Linda Ward (“Wards”), appeal from a judgment in favor of the appellee, James R. Williams. At issue is an alleged oral contract for the sale of land located in Bryant. The Wards assert three points on appeal: (1) that the circuit court abdicated its fact-finding role by relying on findings made by the Court of Appeals in a previous appeal; (2) that the circuit court'erred in failing to consider whether there had been a “meeting of the minds” between the parties; and (3) that there was no clear and convincing evidence of the essential terms of the contract. We disagree with the Wards’ arguments and affirm the circuit court.

In November 1997, Williams filed suit against Bud Ward and Linda Ward, his wife, alleging that the Wards had entered into an oral agreement with Williams whereby Williams would purchase three tracts of land in Bryant from Bud Ward.1 Williams stated that the terms of the agreement included a $900,000 purchase price consisting of a $300,000 down payment, payable in cash and merchandise, and a balance of $600,000 payable at eight percent interest over twenty years. The complaint further asserted that Williams had completed the payment of the $300,000 down payment as of April 30, 1997, and had also paid monthly installments on the balance of the purchase price from May 21, 1994, through September 1997. Williams claimed that the oral contract at issue was removed from the statute of frauds due to his possession and control of the land, his substantial improvements to the land, and his substantial partial payment of the purchase price.

On January 25, 1999, a bench trial was held before the circuit court at which Williams testified that he and Bud Ward agreed to the following terms, including the fact that the $300,000 down payment was to be paid in cash and merchandise:

Our original agreement, before we amended it in November, was a $900,000 purchase price with a $300,000 down payment, and a $600,000 note to be amortized over a course of 20 years at eight percent. The $300,000 was to be paid in the manner in which I described up front, $25,000 cash, 25,000 in diamonds, 25,000 dollar car and 25,000 in general merchandise, with the other 200,000 to be paid in merchandise and cash within the two years. Subsequently, upon our meeting, our agreement in November of 94, we decided that I was to finish paying him in cash and because of the amount of cash that I was to get an additional year to pay the down payment, which would have extended that to three years.

Williams also testified that his possession of the property and dealing with tenants was part of the agreement, as. well as repairing the property, insuring it, and paying any utilities due. Williams explained that although he had written “lease” in the memo portion of many checks to Bud Ward, he did so only because Ward asked him to do that due to problems with his ex-wife. He stated that at all times, he and Ward discussed the business transaction as a sale of the land, not as a lease. Finally, Williams testified that although he was presented three separate draft agreements by Ward regarding the property, he did not sign any of them because they did not reflect the terms of the agreement that they had reached.2

At the close of Williams’s case, the Wards motioned the court to dismiss the case with prejudice. The circuit court granted the Wards’ motion and stated in its ruling:

The problem ... is that in order for me to require someone to specifically perform on a contract, I have to have a contract. Whether it’s in writing or oral, there’s got to be a contract. The essence of any contract, as you know, as well as I do, is there’s got to be a meeting of the minds, and there never has been. Your client’s own testimony, “If we could have ever gotten a contract that we could have agreed upon and signed.” There simply is no contract. For the record, to the extent that it might appear there was one, and there was none, there was insufficient partial performance that would remove the case from the statute of frauds. But the basis of the Court’s ruling is, there is no contract and never was. The case is dismissed without prejudice. . . .

On January 26, 1999, an order was entered to that effect.

The matter was appealed by Williams to the Court of Appeals and the Court of Appeals reversed and remanded the case in an unpublished opinion. See Williams v. Ward, CA99-502 (Ark. App. Feb. 23, 2000) (Ward 1). The Court of Appeals held that the circuit court’s dismissal amounted to a directed verdict. The Court of Appeals noted that the phrase “meeting of the minds” had fallen into disfavor but determined that the evidence demonstrated that the “transaction at issue clearly had the requisite objective indicators of mutual agreement necessary to form a contract and that [Williams] established, by clear and convincing evidence, that an agreement was reached.” Ward I, supra. The Court of Appeals also said that Williams had “established the property’s purchase price, the amount of the down payment and the manner in which it would be satisfied, the amount of each monthly payment, and the term of the contract.” Ward I, supra. Regarding removal of the oral contract from the statute of frauds, the Court of Appeals concluded that because Williams paid a substantial amount of money to Bud Ward, made improvements and repairs to the property, and secured tenants for the property, from whom he collected rent, Williams’s actions were more than sufficient part performance to remove the oral contract from the statute of frauds. See Ward I, supra. The Court of Appeals remanded the case to the circuit court for further proceedings.

On remand, the circuit court held a second bench trial on March 14, 2001, at which the court began where it had ended following the first bench trial and allowed the Wards to present their case in response to Williams’s case. Bud Ward testified that on March 25, 1994, he met with Williams, who offered him $900,000 for his land. Ward stated that Williams told him that because he could not afford to buy the land at that time, he wanted to lease it for twelve months and would begin paying a down payment at the same time. Ward also claimed that Williams told him that if he changed his mind and decided not to buy the land, he would forfeit any money paid toward the down payment. Ward insisted that he and Williams agreed that Ward “would get a written contract.” Ward testified that over time he received cash, check payments, and merchandise from Williams. Ward contended that at all times he told Mr. Williams that “[t]his price is good for twelve months only.”

At the close of the Wards’ case, counsel for both parties made closing arguments. Following questions posed from the circuit court to both parties, the court took the matter under advisement. On May 23, 2001, the circuit court issued a letter opinion, which read in part:

I have reviewed the proof from the hearings on January 25, 1998, and March 14, 2001, in the above referenced case as well as the plaintiffs Pre-Trial and Post Trial Briefs, the defendants’ Post Trial Brief and the Opinion of the Arkansas Court of Appeals dated February 23, 2000.

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Bluebook (online)
118 S.W.3d 513, 354 Ark. 168, 2003 Ark. LEXIS 483, Counsel Stack Legal Research, https://law.counselstack.com/opinion/ward-v-williams-ark-2003.