Wingate v. Coombs

379 S.E.2d 304, 237 Va. 501, 5 Va. Law Rep. 2220, 1989 Va. LEXIS 78
CourtSupreme Court of Virginia
DecidedApril 21, 1989
DocketRecord No. 861229; Record No. 861230
StatusPublished
Cited by4 cases

This text of 379 S.E.2d 304 (Wingate v. Coombs) is published on Counsel Stack Legal Research, covering Supreme Court of Virginia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Wingate v. Coombs, 379 S.E.2d 304, 237 Va. 501, 5 Va. Law Rep. 2220, 1989 Va. LEXIS 78 (Va. 1989).

Opinion

COMPTON, J.,

delivered the opinion of the Court.

We granted this appeal to resolve a conflict in this Court’s decisions on the question whether an oral partnership agreement among individuals for the purpose of acquisition and development of real property for profit is valid and not within the statute of frauds. As pertinent to this controversy, the statute provides: “No action shall be brought . . . [ujpon any contract for the sale of real estate . . . [ujnless the promise, contract, agreement, ... or some memorandum or note thereof, be in writing and signed by the party to be charged thereby, or his agent . . . .” Code § 11-2(6).

In 1986, appellants Charles Wingate and Robert Bremner filed separate, identical bills of complaint for declaratory and injunctive [503]*503relief against appellees John L. Coombs, Michael E. Fiore, Philip Dean, and David I. A. Mayers, Sr. The plaintiffs asked the court to declare that a partnership agreement among the six individuals was valid and that defendants be enjoined from disposing of certain Hanover County real estate which was the subject of the alleged agreement.

Defendants demurred on several grounds and, after argument of counsel, the chancellor sustained the demurrers. In October 1986 final decrees, the court dismissed with prejudice the respective bills of complaint. We consolidated for purposes of briefing and argument the plaintiffs’ separate petitions for appeal and awarded them this appeal from the final decrees.

The facts will be stated as set forth in the bills of complaint, the demurrers having admitted the truth of all material facts properly pleaded. Initially, the plaintiffs and defendants Coombs and Fiore discussed the development of the subject property. Subsequently, pursuant to the conversations, the plaintiffs and the four defendants “entered into a partnership agreement whereby the six individuals . . . became partners for the purpose of the acquisition and development of the property for profit,” according to the allegations. There is no claim that the agreement was in writing.

Thereafter, the plaintiffs performed various acts toward acquisition and development of the tract. This included rendering assistance in drafting contracts for purchase of the property and discussion with the other partners of strategy for negotiations for the purchase. The six individuals agreed to own the property as partners and “by virtue thereof each agreed to have a mutual and joint equal interest in said property and to divide the profits equally,” according to the allegations.

When the purchase of the property was imminent, defendant Coombs advised the plaintiffs that defendants no longer considered the plaintiffs to be their partners. Later, this position was confirmed by a July 1986 letter to plaintiffs’ counsel from defendants’ attorney, who observed that plaintiffs were claiming “ownership of an interest in a partnership that owns the land, and not an interest in the land itself.”

Subsequently, the plaintiffs filed the present suits. Asserting that defendants had repudiated their obligations under the partnership agreement, the plaintiffs asked the court to declare them partners in the partnership to share equally in the profits from the sale of the real estate.

[504]*504The main ground of defendants’ demurrers was that the bills failed to allege facts sufficient to support maintenance of the suits because there was no claim of existence of an agreement in writing as required by the statute of frauds. The chancellor, noting the strength of defendants’ statute of frauds argument, decided to sustain the demurrers on all grounds. In the final decrees, the court refused the plaintiffs’ motions for leave to amend, stating the plaintiffs had “conceded” that the alleged agreement was not contained in a writing as required by the statute of frauds.

On appeal, the plaintiffs contend the trial court erred. Upon the statute of frauds question, they principally rely on Miller v. Ferguson, 107 Va. 249, 57 S.E. 649 (1907).

The defendants argue the trial court correctly decided the issue. They rely on Henderson v. Hudson, 15 Va. (1 Munf.) 510 (1810), and Walker v. Herring, 62 Va. (21 Gratt.) 678 (1872). Defendants state that the facts of the present case, and of Henderson and Miller, are virtually identical. They correctly point out that neither Henderson nor Walker, which applied the Henderson rule, has been expressly overruled. They also accurately observe that the opinion in Miller fails to mention either Henderson or Walker. Thus, defendants say, the Miller decision was contrary to established law, was wrongly decided, and should not be considered binding precedent by this Court.

In order to apply the doctrine of stare decisis properly to this case, we must analyze the applicable decisions to determine the rule of law the Court has adopted. The history of the development of the rule governing this case is interesting.

In Henderson, this Court reversed a decision of Chancellor George Wythe of the High Court of Chancery. The plaintiff brought suit “for the purpose of obtaining a conveyance of a moiety of a tract of land purchased by the defendant.” 15 Va. at 510. He relied upon “a verbal agreement between himself and the defendant, that he should be let in as a partner in the purchase.” Id. The defendant denied the agreement and also relied upon the statute of frauds. The Chancellor ruled in favor of the plaintiff and sustained the oral agreement. He held the testimony proved that defendant agreed to associate plaintiff in the purchase of the land, and that the statute applied only to contracts, and actions upon them, between buyers and sellers of land, but not to the contract in issue. Id.

[505]*505This Court, in an opinion by Judge St. George Tucker, held that the statute of frauds “emphatically” applied to the agreement. Id. at 516. Judge Tucker viewed the contract as both a contract for the sale of lands and a contract for the purchase of land “in partnership.” Id. President William Fleming filed a concurring opinion. He agreed that the decree of the Chancellor should be reversed and the bill dismissed, but stated that he had considered the issue “with less attention than I otherwise should have done.” Id. at 518. Judge Spencer Roane, the third judge of the Court at the time, did not sit in the case.

Sixty-two years later, the Court in Walker, examining a similar contract, held that the agreement was within the statute of frauds and that Henderson was “directly in point.” 62 Va. at 680. The Walker Court noted that, in Henderson, Chancellor Wythe “decided that the statute applied to contracts, and actions upon them, between the buyers and sellers of land; and not to a contract between the purchaser and a third person, that such person shall be admitted as a partner in the purchase.” Id. In Walker, the Court said that the Henderson decision meant “that although the contract was not between the buyer and seller, yet it was within the mischief intended to be guarded against by the statute, which being a remedial one, and intended to prevent a growing evil, ought to be liberally construed.” Id.

Thirty-five years later, the Court considered the issue again and announced a different rule in Miller.

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Cite This Page — Counsel Stack

Bluebook (online)
379 S.E.2d 304, 237 Va. 501, 5 Va. Law Rep. 2220, 1989 Va. LEXIS 78, Counsel Stack Legal Research, https://law.counselstack.com/opinion/wingate-v-coombs-va-1989.