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COURT OF APPEALS DECISION DATED AND RELEASED NOVEMBER 5, 1996 |
NOTICE |
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A party may file with the
Supreme Court a petition to review an adverse decision by the Court of
Appeals. See § 808.10 and
Rule 809.62(1), Stats. |
This opinion is subject to
further editing. If published, the
official version will appear in the bound volume of the Official Reports. |
No. 96-1176-FT
STATE
OF WISCONSIN IN COURT OF
APPEALS
DISTRICT III
DAVID LANG
and THOMAS LANG,
Plaintiffs-Respondents,
v.
DIANNE J. SEIBERT,
Defendant-Appellant.
APPEAL from a judgment
of the circuit court for Sawyer County:
NORMAN L. YACKEL, Judge. Affirmed.
Before Cane, P.J.,
LaRocque and Myse, JJ.
PER CURIAM. Dianne Seibert appeals a summary judgment
for specific performance of an offer to purchase contract she entered into with
David and Thomas Lang.[1] Seibert argues that (1) disputed issues of
material fact preclude summary judgment and (2) the trial court erroneously
permitted the Langs to amend their complaint.
We affirm the judgment.[2]
Dianne Seibert and Bernard Rasine, Jr., owned
the Dans-Bar Resort in Couderay, Wisconsin and
listed it for sale with Northern States Realty. On July 31, 1994, Thomas and David Lang
submitted an offer to purchase the resort for $345,000, which was not
accepted. On August 4, David Lang
signed an amended offer to purchase, mislabeled "counter-offer," for $375,000, contingent on obtaining
financing within forty-five days.
Thomas Lang did not sign the amended offer. Seibert signed an acceptance of the offer, but Rasine did not.
On August 11, 1994, both
Langs signed a third offer to purchase, also mislabeled
"counter-offer," which was accepted by both Seibert and Rasine on
August 16. This agreement also provided
the offer was contingent upon the buyers' obtaining financing within forty-five
days of acceptance of the offer. Within
the forty-five-day period, on September 21, 1994, the Langs signed a written
waiver of the financing contingency.
Also on September 19 or
21, 1994, Seibert advised her agent that she was no longer willing to proceed
with the transaction. She believed that
the forty-
five-day
financing contingency had expired on September 18, based upon the August 4
contract. As a result, she rescinded
her acceptance and the transaction did not close.
The Langs commenced this
action for specific performance of the August 4 contract. Ten months later they filed an amended
complaint for specific performance of the August 16 contract and moved for
summary judgment. The trial court
determined that the statute of frauds rendered the August 4 contract
unenforceable. Based on the August 16
contract, the trial court entered summary judgment for specific performance in
favor of the Langs. Seibert appeals.
When reviewing summary
judgment, we apply the standard set forth in § 802.08(2), Stats., in the same manner as the
circuit court. Kreinz v. NDII
Secs. Corp., 138 Wis.2d 204,
209, 406 N.W.2d 164, 166 (Ct. App. 1987).
Summary judgment is appropriate when material facts are undisputed and
when inferences that may be reasonably drawn from the facts are not doubtful
and lead only to one conclusion. Radlein
v. Industrial Fire & Cas. Ins. Co., 117 Wis.2d 605, 609, 345 N.W.2d
874, 877 (1984).
Seibert argues that
material factual disputes bar the trial court from entering a judgment for
specific performance. Seibert argues
that when the August 4 and the August 16 contract are read together, an
ambiguity is created with respect to the date by which the financing
contingency is to be fulfilled and, therefore, a fact issue as to the parties'
intent is raised. We disagree.
If a contract is plain
and unambiguous, it must be enforced as it is written. Goossen v. Estate of Standaert,
189 Wis.2d 237, 247, 525 N.W.2d 314, 318 (1994). The cornerstone of contract interpretation is to ascertain the
intentions of the parties as expressed by the contract language. State ex rel. Journal/Sentinel, Inc.
v. Pleva, 155 Wis.2d 704, 711, 456 N.W.2d 359, 362 (1990). If the contract's language is plain and
unambiguous, we construe it without consideration of parties' construction of
it. Kreinz, 138 Wis.2d at
216, 406 N.W.2d at 169.
Absent ambiguity
requiring resort to extrinsic evidence, the construction of a contract is a
question of law. Lakeshore
Commercial Fin. Corp. v. Drobac, 107 Wis.2d 445, 452, 319 N.W.2d 839,
843 (1982). Whether a contract is
ambiguous is a question of law decided independently on appeal. See Lamb v. Manning, 145
Wis.2d 619, 627, 427 N.W.2d 437, 441 (Ct. App. 1988). A contract is ambiguous when it is susceptible to more than one
reasonable interpretation. Wilke
v. First Fed'l S&L Ass'n, 108 Wis.2d 650, 654, 323 N.W.2d 179, 181
(Ct. App. 1982). Summary judgment
construing a contract is appropriate only when the contract is unambiguous or
when the parties' intent can be established by undisputed facts that allow but
one inference. Jones v. Sears
Roebuck & Co., 80 Wis.2d 321, 325, 259 N.W.2d 70, 71 (1977).
Seibert does not contend
that the August 16 contract, standing alone, is ambiguous. Rather, she contends that it should be read
with the August 4 contract, thereby creating an ambiguity as to the date that
the financing contingency must be
satisfied. We disagree. The August 16 contract makes no reference to the August 4 offer
and makes no suggestion that it should be read in conjunction with the previous
August 4 offer. Because the August 16 contract
is unambiguous, resort to extrinsic evidence as to the parties' intent is
unnecessary. See Lakeshore,
107 Wis.2d at 452, 319 N.W.2d at 843.
The Langs were entitled to summary judgment of specific performance
based upon the unambiguous language of the August 16 contract.
Seibert also argues that
the August 4 contract was binding, and that the August 16 contract was merely
meant to serve as a file copy and not create a separate contract. She argues that the lack of Rasine and
Thomas Lang's signatures were of no consequence because she and David Lang
testified that they had the power to bind all parties to the agreement. Seibert's argument suggests that the trial
court erroneously concluded that the August 4 contract was unenforceable for
failing to comply with the statute of fraud's requirement that the document
must be "signed by or on behalf of all parties." See § 706.02(1)(e), Stats.
We disagree. It is undisputed that at the time of the August 4 offer,
Rasine was a titleholder to the property.
It is also undisputed that Lang possessed no written power of attorney
authorizing her to act on behalf of Rasine.
The August 4 offer does not indicate that Seibert or Lang signed on
behalf of another. See §
706.03(1m), Stats.[3] Because the August 4 document was not signed
by or on behalf of all parties to the transaction, it is not a valid conveyance
and fails to create any ambiguity with respect to the subsequent document.
Seibert also argues that
a genuine issue of fact remains whether there was a mutual mistake between the
parties regarding the validity of the August 4 contract. We disagree. The lack of a signature does not constitute a mutual mistake of
fact or law but rather a formal defect under the statute of frauds. Security Pacific Nat'l Bank v.
Ginkowski, 140 Wis.2d 332, 336, 410 N.W.2d 589, 591 (Ct. App. 1987). Because the buyers waived their financing
contingency before the date of its expiration in the August 16 contract, a
binding agreement was created. See C.G. Schmidt, Inc. v. Tiedke,
181 Wis.2d 316, 321, 510 N.W.2d 756, 757 (Ct. App. 1993). The trial court properly granted the remedy
of specific performance. Anderson
v. Onsager, 155 Wis.2d 504, 512-13, 455 N.W.2d 885, 889 (Ct. App.
1990).
Next, Seibert argues
that the trial court erroneously permitted the Langs to amend their
complaint. The Langs' original
complaint alleged breach of the August 4 contract, but the Langs filed an
amended complaint alleging breach of the August 16 contract. The trial court
granted the Langs' motion to amend their complaint finding that the amendment
would not prejudice Seibert. It found
that Seibert had been aware that the date of the contract was an issue since
discovery proceedings six months before.
After six months have
elapsed from the date of filing the action, a party may amend its pleading with
written consent of the adverse party or by leave of the court. Section 802.09(1), Stats. Such leave
shall be freely given at any stage when justice so requires. Id.
A motion to amend
pleadings is addressed to trial court discretion. See Brookfield v. Milwaukee Metro. Sewerage Dist.,
171 Wis.2d 400, 420-21, 491 N.W.2d 484, 491-93 (1992). We uphold the trial court's exercise of
discretion if the record shows a process of reasoning dependent on facts of
record and a conclusion based on a logical rationale founded upon proper legal
standards. State v. Shanks,
152 Wis.2d 284, 289, 448 N.W.2d 264, 266 (Ct. App. 1989). Seibert argues that she was given no
opportunity to respond to the amended pleadings. She does not, however, assert what response she would have made,
nor how the lack of opportunity to make one prejudiced her. We conclude the record supports the trial
court's exercise of discretion.
Finally, in her reply
brief, Seibert makes three arguments.
First, she contends that the Langs did not raise the statute of frauds
in their pleadings or memorandum of law in support of summary judgment, so the
issue was not properly before the trial court, and therefore not properly
before the court of appeals. We
disagree. The Langs argued in their
legal memorandum that it was undisputed that the only offer signed by all four
parties was the August 16 document.
Although the issue was not expressly raised in the pleadings, the
amended complaint, seeking relief on the basis of a signed August 16 offer, was
sufficient to put the issue before the court.
We are satisfied that the Langs did not waive their statute of frauds
argument.
Second, Seibert argues the
defense of ratification; that she
signed the August 4 document on behalf of Rasine and the August 16 offer was
merely a subsequent ratification that relates back to the time of the original
transaction and does not change the intent to the parties. We disagree. Seibert offers no proof that on August 4 she was acting on behalf
of Rasine. "[T]here can be no ratification of a contract which one intends
for another, even though he believes that he is authorized to make it on behalf
of the other, unless the intent is manifested." In re Estate of Alexander, 75 Wis.2d 168, 179, 248
N.W.2d 475, 481 (1977) (citation omitted).
Absent proof of impersonation or a manifestation of Seibert's intent to
act upon the behalf of another, Seibert's argument fails.
Third, Seibert argues
that the Langs failed to join Rasine, an indispensable party. Seibert does not dispute the Langs'
assertion that in December 1994, Seibert bought out Rasine's interest. See Charolais Breeding Ranches,
Ltd. v. FPC Securities Corp., 90 Wis.2d 97, 108-09, 279 N.W.2d 493, 499
(Ct. App. 1979) (Party may not complain if unrefuted proposition is taken as
confessed). Seibert advances no facts
to the contrary. As a result, we do not
reverse on the basis of this argument.
By
the Court.—Judgment affirmed.
This opinion will not be
published. Rule 809.23(1)(b)5, Stats.
[2] In her statement of issues, Seibert includes a third issue, whether the trial court erroneously dismissed her claim for unjust enrichment. Because this issue is neither argued nor briefed, we deem it abandoned. Reiman Assocs., Inc. v. R/A Adver., Inc., 102 Wis.2d 305, 306 n.1, 306 N.W.2d 292, 294 n.1 (Ct. App. 1981).
[3]
Section 706.03(1m), Stats.,
provides:
A conveyance signed by one purporting to act as agent for another shall be ineffective as against the purported principal unless such agent was expressly authorized, and unless the authorizing principal is identified as such in the conveyance or in the form of signature or acknowledgment. The burden of proving the authority of any such agent shall be upon the person asserting the same.