Wolfe v. Sutphin

491 S.E.2d 35, 201 W. Va. 35, 1997 W. Va. LEXIS 196
CourtWest Virginia Supreme Court
DecidedJuly 10, 1997
DocketNo. 23853
StatusPublished

This text of 491 S.E.2d 35 (Wolfe v. Sutphin) is published on Counsel Stack Legal Research, covering West Virginia Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Wolfe v. Sutphin, 491 S.E.2d 35, 201 W. Va. 35, 1997 W. Va. LEXIS 196 (W. Va. 1997).

Opinion

PER CURIAM:

This is an appeal by Curtis and Calvin Sutphin from an order of the Circuit Court of Kanawha County awarding James T. Wolfe judgment against them for $70,000.00 and prejudgment and postjudgment interest. The judgment was for restitution. On appeal, the Sutphins claim that they were never in a contractual relationship with Mr. Wolfe and that under the circumstances there was no basis for an award of restitution. They also claim that the trial court committed a number of trial errors. After reviewing the issues raised and the documents filed, this Court can find no reversible error. The judgment of the Circuit Court of Kanawha County is, therefore, affirmed.

The facts underlying this case are somewhat convoluted. Those facts show that the appellants, Curtis and Calvin Sutphin, owned a tract of improved real estate located in Marmet, Kanawha County, West Virginia. A restaurant, also owned by the Sutphins, known as The Canary Cottage was operated on this real estate, and it and the structure were leased to lessees of the Sutphins for many years. The lessees in 1985, the time relevant to this proceeding, was Judith Lynn Rogers.

A frequent customer at The Canary Cottage was James T. Wolfe, the individual who ultimately instituted the action underlying this appeal. Mr. Wolfe, an elderly man with some money, appears to have been on particularly friendly terms with Blanche Cooper, a cook employed by Judith Lynn Rogers, and her husband A.E. Kalmus who assisted in the operation of the restaurant.

The complaint in this action alleges that on August 30, 1985, Mr. Wolfe endorsed and transferred to A.E. Kalmus, a check payable to him, Wolfe, for $25,500.00. The complaint also alleges that in October, November, and December 1985, A.E. Kalmus and Judith Lynn Rogers conspired to extract additional sums of money from Mr. Wolfe by persuading him that by advancing them additional [37]*37sums of money, he would be purchasing a share of the business.

It further appears that in 1985 A.E. Kal-mus and Judith Lynn Rogers, decided to attempt to purchase The Canary Cottage business and real estate from the appellants, Curtis and Calvin Sutphin. After some negotiation, they reached an agreement with the Sutphins, and on December 13, 1985, Judith Lynn Rogers entered into a written lease-purchase agreement with the Sutphins. Under the agreement, Judith Lynn Rogers agreed to lease the premises for forty-eight months for $180,000.00. At the conclusion of the lease period the Sutphins agreed to convey The Canary Cottage restaurant property to Ms. Rogers if the $180,000.00 was paid. The lease agreement provided that the $180,-000.00 was to be paid in the following manner: 1) $70,000.00 was to be paid on December 13,1985; 2) $10,000.00 was to be paid on December 13, 1986; and 3) an additional forty-seven monthly payments of $1,168.19 were to be made over the forty-eight months of the lease; and 4) at the end of the forty-eight months a balloon payment was to be made of the residue at the conclusion of the lease.

At the time of entering into the agreement Judith Lynn Rogers apparently did not have the $70,000.00 to make the initial payment which was due on December 13,1985.

While the negotiations for the lease-purchase agreement were being conducted, the cook, Blanche Cooper, apparently discussed the need of A.E. Kalmus and Judith Lynn Rogers for additional money with Mr. Wolfe. As a consequence, Mr. Wolfe arranged that a check for $70,000.00 be delivered to the Sut-phins.

Ms. Cooper, the cook, actually delivered Mr. Wolfe’s $70,000.00 check to the Sutphins. At that time she said, “Here’s the check. You’ll have a new partner.” In the course of the development of this case, she was asked if she indicated to the Sutphins who the new partner would be, and she said that the new partner was Mr. Wolfe. She was questioned further in the following manner:

Q: Had you had any previous conversations with either Curtis or Calvin Sutphin regarding the purchase of this real estate and Mr. Wolfe?
A: Maybe a month or two before I said something to them when they came to collect the rent. I said, ‘You know, he’s going into partnership, don’t you?’ to one of them then, to Mr. Sutphin, Curtis, I believe.
Q: Did you indicate anything to them that — about Mr. Wolfe possibly — that he was going to be one of the purchasers upon the real estate?
A: Yes, I did.
Q: Did you say anything to them about the fact that his name was supposed to be on the deed?
A: I said, ‘He’s a partner here. He’s a new partner’ and I believe I did say his name will be on the new deed.

After the check was delivered to the Sut-phins, A.E.,Kalmus and Judith Lynn Rogers began operating The Canary Cottage under the new agreement. It does not appear that Mr. Wolfe was in any way included in the purchase arrangement or that he participated in the operation of The Canary Cottage.

In March 1996 a dispute arose between Judith Lynn Rogers and her husband and the cook, Blanche Cooper. As a result of the dispute, Ms. Rogers and her husband fired Ms. Cooper.

After Ms. Cooper was fired she apparently contacted Mr. Wolfe, and, as a consequence, an attorney for Mr. Wolfe wrote A.E. Kal-mus and Judith Rogers a letter dated June 4, 1986. In that letter the attorney stated:

I represent James T. Wolfe with respect to sums advanced to you within the past year which sums, I believe total $141,-000.00. On behalf of my client I hereby request immediate repayment of these funds.
In the event satisfactory arrangements have not been made either with Mr. Wolfe or myself within two weeks of the date of this letter litigation will be filed forthwith.

The letter made no mention of any claim against the Sutphins nor was a similar letter written to the Sutphins.

[38]*38A.E. Kalmus and Judith Lynn Rogers did not meet Mr. Wolfe’s demand within two weeks, and Mr. Wolfe instituted the present action. In instituting the action he sued not only Mr. Kalmus and Ms. Rogers, but also the Sutphins.

In the complaint Mr. Wolfe alleged that the Sutphins were aware that Mr. Wolfe’s money was being invested in The Canary Cottage and that he had no interest in the property. He asserted that they took no action to inform him that he had no interest in the property. He further alleged that the Sutphins had been unjustly enriched by what occurred. He inferred that the Sutphins were aware that he had been induced to advance monies which they ultimately received by his being misled to believe that he was acquiring an interest in The Canary Cottage and business.

The case was initially tried by the Circuit Court of Kanawha County with an advisory jury. In the course of the trial the focus of the proceedings was upon the contract between the Sutphins and Judith Lynn Rogers and whether the Court should reform the contract to include Mr. Wolfe. At the conclusion of that trial the jury and the court found that Mr. Wolfe was entitled to recover the $70,000.00 from the Sutphins. The jury also awarded Mr. Wolfe prejudgment and postjudgment interest.

During that trial the trial court instructed the jury on principles of rescission and reformation of a contract, but did not instruct the jury on principles of restitution.

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Related

Prudential Insurance Co. of America v. Couch
376 S.E.2d 104 (West Virginia Supreme Court, 1988)
Wolfe v. Kalmus
413 S.E.2d 679 (West Virginia Supreme Court, 1991)

Cite This Page — Counsel Stack

Bluebook (online)
491 S.E.2d 35, 201 W. Va. 35, 1997 W. Va. LEXIS 196, Counsel Stack Legal Research, https://law.counselstack.com/opinion/wolfe-v-sutphin-wva-1997.