Will T. Payne v. John Stacy Ruegsegger, et ux

CourtCourt of Appeals of Washington
DecidedJune 14, 2016
Docket33537-2
StatusUnpublished

This text of Will T. Payne v. John Stacy Ruegsegger, et ux (Will T. Payne v. John Stacy Ruegsegger, et ux) is published on Counsel Stack Legal Research, covering Court of Appeals of Washington primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Will T. Payne v. John Stacy Ruegsegger, et ux, (Wash. Ct. App. 2016).

Opinion

FILED JUNE 14, 2016 In the Office of the Clerk of Court WA State Court of Appeals, Division Ill

IN THE COURT OF APPEALS OF THE STATE OF WASHINGTON DIVISION THREE

WILL T. PAYNE, ) ) No. 33537-2-111 Appellant, ) ) v. ) ) JOHN "STACY" and SHARIE KAY ) UNPUBLISHED OPINION RUEGSEGGER, ) ) Respondents. )

FEARING, C.J. - The trial court dismissed on summary judgment plaintiff Will

Payne's suit against John and Sharie Ruegsegger for moneys owed under a real estate

contract on the basis that the agreement was not enforceable. The trial court also refused

to entertain Payne's claims for equitable estoppel, unjust enrichment, and constructive

trust because Payne failed to plead these equitable theories. Will Payne appeals. We

affirm. No. 33537-2-111 Payne v. Ruegsegger

FACTS

On March 5, 2003, the State of Alaska sold, on contract, Alaska real property to

Lisa and Woodrow Allen. On December 27, 2007, Lisa and Woodrow Allen assigned

their purchasers' interest in the real estate contract to Will Payne, a Spokane jewel dealer.

That same year, a mutual friend introduced Payne to John Ruegsegger. Payne mentored

Ruegsegger in gem trading, and Ruegsegger purchased gemstones from Payne as

investments. The two gentleman began a friendship.

In January 2008, Will Payne approached John Ruegsegger and the latter's wife,

Sharie, about purchasing Alaska real property. Payne declared that he owned land lots in

Alaska and offered to sell a lot to John Ruegsegger for an investment. The two discussed

a sale several times. Payne showed Ruegsegger a hand-drawn map and described the

property as enjoying an ocean view and an access road connecting the lot to the county

road.

On February 5, 2008, Will Payne, as seller, and John and Sharie Ruegsegger, as

buyers, signed a single-page document designed for use as an addendum to a real estate

purchase agreement. The document read:

ADDENDUM to that Real Estate Purchase and Sale Agreement dated February 5th, 2008 between Will T. Payne hereinafter known as the Seller, and J. Stacy and Sharie Ruegsegger hereinafter known as the Purchaser of the property commonly known as Whale Passage, Alaska and legally described as: Lot 9-B, B Portion oflot 9, Block 13, ALS 2000-26 as shown on Plat No. 2000-20 Petersburg Recording district Alaska situated in the County of Petersburg District, State of Alaska

2 No. 33537-2-111 Payne v. Ruegsegger

SAID AGREEMENT is hereby amended to read as follows: The following purchase is agreed upon between seller and buyer as above in the amount of $60,000.00 with 12,000.00 down (check) and a balance of $48,000.00 to be paid in certified fund at 9% for 15 years to be carried by seller per promissory note attached. The property is sold as is including power at property line as shown in addendum A ALL OTHER terms and conditions of said Real Estate Purchase and Sale Agreement shall remain the same. THE ABOVE has been read and is agreed to by the undersigned this: 5th day of February 2008 5th day of February 2008 J Stacy Ruegsegger Will T. Payne Feb. 5, 2008 Purchaser Seller Sharie Ruegsegger Purchaser Seller

Clerk's Papers (CP) at 7 (handwritten portions are underlined).

Although the one-page document claims to modify a real estate purchase and sale

agreement, no prior agreement existed. The parties also never executed the promissory

note referenced in the document. The document mentioned an addendum A, but neither

party, during litigation, produced an addendum to the document. Will Payne claims

addendum A was a simple map and legal description of the property.

John and Sharie Ruegsegger paid Will Payne $12,000 as down payment for the

purchase of the Alaska property. Thereafter, the Ruegseggers, nearly each month and

usually in the sum of $500, periodically forwarded partial payments to Payne, and he

sometimes provided handwritten receipts for the payments. The Ruegseggers aver that

they paid $39,286.85 to Payne and that he never provided receipts for many of the

3 No. 33537-2-III Payne v. Ruegsegger

payments. Payne contends the Ruegseggers owe a balance of $38,000.00, a figure

suggesting the Ruegseggers paid a lesser sum.

On December 29, 2008, Will Payne recorded a deed showing the State of Alaska

granted him ownership of the Alaska land. On May 11, 2009, Payne executed a statutory

warranty deed transferring title of the Alaska property to the Ruegseggers. John and

Sharie Ruegsegger discontinued paying Will Payne on the real estate contract after

October 2012. Payne spoke with John Ruegsegger numerous times about the

Ruegseggers' failure to pay, and, on April 10, 2014, Payne sent them a formal

notification and request for payment.

PROCEDURE

Will Payne sued John and Sharie Ruegsegger. The complaint, captioned

Complaint for Money Owed, contains sections titled jurisdiction, events, damages, and

prayer for relief. The complaint does not list causes of action, but alleges that the

Ruegseggers owe $38,000 plus prejudgment interest. Payne's prayer for relief requested:

1. That judgment be entered against the Defendants individually and any marital community if applicable in the principal amount of $38,000.00 with prejudgment interest to the date of entry of judgment; 2. That the court award attorney fees and costs as permitted by law or contract; 3. For judgment for such other and further relief as the courts deems [sic] just and proper.

CP at 5.

John and Sharie Ruegsegger answered the complaint and raised affirmative

4 No. 33537-2-III Payne v. Ruegsegger

defenses, including failure to state a claim, lack of subject matter jurisdiction, improper

venue, waiver, estoppel, unclean hands, material breach, failure to mitigate, statute of

frauds, consumer protection violations, lack of consideration, lack of essential terms,

accord and satisfaction, and fraud. The Ruegseggers also asserted counterclaims for

violations of the Consumer Protection Act, chapter 19.86 RCW, constructive fraud, and

unjust enrichment.

John and Sharie Ruegsegger moved for summary judgment. With the motion, the

couple argued that the one-page sale document is unenforceable because it lacks essential

elements of a contract to sell real estate, the terms of the document show no meeting of

the minds, and Will Payne's claim is not ripe because the contract contains no

acceleration clause. The Ruegseggers sought attorney fees under RCW 4.84.185 for

defending against Payne's frivolous claims. They also filed a supplemental

memorandum to support an award of fees, in which memorandum they argued that Payne

knew he could not sell the land because it violated an Alaska statute. On response to the

Ruegseggers' summary judgment motion, Will Payne argued that the agreement was

enforceable. Payne also sought relief on the grounds of equitable estoppel, unjust

enrichment, unclean hands, and a constructive trust. Will Payne cross-moved for

summary judgment.

The trial court granted John and Sharie Ruegsegger' s motion for summary

judgment and denied Will Payne's cross motion for summary judgment. The trial court

5 No. 33537-2-111 Payne v. Ruegsegger

reasoned that the sale document failed to include the essential elements of an enforceable

real estate contract, the parties entered no contract because of a lack of a meeting of the

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