Washington v. Claassen
| Decision Date | 24 January 1976 |
| Docket Number | No. 47790,47790 |
| Citation | 218 Kan. 577,545 P.2d 387 |
| Parties | Luther WASHINGTON, Appellee, v. Louis A. CLAASSEN and Albert Chaney, Appellants. |
| Court | Kansas Supreme Court |
Syllabus by the Court
1. When a written memorandum required by the statute of frauds is lost or inadvertently destroyed, its contents may be proved by oral testimony which discloses the contents of the writing and the fact that it was signed by the parties.
2. When a person signs a written contract he is bound by its terms, in the absence of fraud, undue influence or mutual mistake as to its contents, regardless of the person's failure to read and understand its terms.
3. The underlying theory of unjust enrichment is that where one expends money and labor in the improvement of the property of another on the faith of a contract which is unenforceable under the statute of frauds or for other reasons, he is entitled to be reimbursed for the improvements enhancing the value of the property on repudiation of the contract by the seller.
4. In an action to recover for services and materials used to remodel a house, which action was tried to the court, the record on appeal is examined and it is held judgment should have been entered in favor of the defendants on uncontradicted evidence for the following reasons: (1) A valid written contract by plaintiff to purchase the house was established; (2) The defendant seller did not repudiate the contract and remained able and willing to perform; (3) The plaintiff purchaser repudiated the contract; and (4) The services and materials furnished in remodeling the house did not enhance the value of the property.
Otto J. Koerner and Randall H. Elam, Wichita, argued the cause and were on the brief for appellants.
No appearance by appellee.
The plaintiff, Luther Washington, brought an action to recover for services rendered and materials used in remodeling and repairing a house in Wichita, Kansas. A judgment for $1,000.00 was entered against the defendants, Louis A. Claassen (owner of the house) and Albert Chaney (real estate agent) after a trial to the court. The defendants appeal.
The house, located at 1515 North Poplar, was in poor condition. Claassen employed Chaney to oversee renovation and repair of this house and to secure a sale of the premises when the repair work had been completed. The actual renovation and repair was done by J. T. Washington, brother of the plaintiff. He was paid the sum of $4,100.00 for services and materials. During the time this work was being done the plaintiff, Luther Washington, either on his own initiative or because of an offer of sale by Chaney, expressed an interest in buying the house. The price discussed between plaintiff and Chaney was $8,500.00. Plaintiff had no cash down payment and it was agreed that plaintiff could assist his brother in the repair of the house. The value of his work was to be treated as a down payment for the property if he could get a loan for the balance. Plaintiff testified he worked about 80 hours before the repair job was completed and his wages came to $180.00. When the work was completed plaintiff was unable to secure a loan on the house. For this reason Chaney agreed to allow plaintiff to move into the house and pay rent of $80.00 per month until plaintiff could obtain a loan.
Plaintiff took possession of the property in March, 1970, and paid rent until July, 1972, at which time he vacated the property. The owner thereafter paid $309.00 to repair damages to the house caused by Luther Washington during his occupancy. During the period plaintiff was in possession of the house he expressed a desire to remodel the basement of the house by putting in an open stairway to the basement, partitioning the area to complete a bathroom, two bedrooms and a recreation room for his children. Chaney agreed and it was understood the cost of the work and materials could be used by plaintiff as an equity or in lieu of a cash down payment for the purpose of obtaining a loan for the purchase price of $8,500.00. The repair work previously furnished by plaintiff in the sum of $180.00 was to be included as part of his equity in case of purchase.
All discussions regarding the remodeling and the sale of the property were between Chaney and the plaintiff. The owner, Claassen, was unaware of these matters. In June, 1972, when the remodeling was complete, it appeared to Chaney that plaintiff could obtain a loan on the premises for $8,500.00 using a $1,500.00 credit for plaintiff's equity in the premises. The agent Chaney prepared a written contract of sale which showed a sale price of $10,000.00, a credit of $1,500.00, and a balance due Claassen of $8,500.00 to be raised by loan. This written contract was signed by Claassen, as seller, Chaney as agent for the seller, and Luther Washington and wife, as purchasers. From the record it appears that all parties agreed to this written contract and their signatures were affixed thereto. No fraud or undue influence is alleged or claimed by plaintiff.
After the written contract was drawn and signed, Chaney arranged with a lending agency to process the $8,500.00 loan on the house. He then delivered the written contracts to the plaintiff who took the contracts to the lending agency. The plaintiff testified that when he arrived at the lending agency and learned of the amount of the monthly payment required to carry the loan he then read the contract for the first time. The price was to be $8,500.00, but he understood that a credit of $1,500.00 would be given, and he assumed the balance to be paid by loan installments would be $7,000.00. The monthly payments required to carry the $8,500.00 loan ran from $90.00 to $93.00. This was more than he would pay. Plaintiff refused to sign the loan papers. He left the copies of the signed contract with the lending agency and left. The copies of the written contract were lost or inadvertently destroyed by the loan company. Thereafter plaintiff moved out of the house and filed this action to recover for labor and materials in remodeling the house. Trial was to the court. Judgment was entered for $1,000.00, $700.00 for labor and $300.00 for materials.
On appeal defendants contend that the trial court's findings are not supported by the evidence and that its conclusions are erroneous. The defendants' arguments are persuasive.
The defendants contend the trial court erroneously found that no written enforceable contract was entered into. The evidence introduced to show the existence and general terms of the written contract was uncontroverted. All parties testified at the trial that the contract in writing was signed by all parties and that they understood that the defendant Claassen was to receive $8,500.00 as the purchase price of the property.
The plaintiff testified that he did not intend to agree to the terms of the written contract, that he was unaware of the contents at the time he signed it and that he repudiated the contract as soon as he learned of its effect. On the basis of this evidence the trial court found:
It concluded on the basis of such finding:
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