Richard v. Richard

900 A.2d 1170 (2006)

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Nature of the Case

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Facts

Gregory and Jennifer were married and moved into the property, then owned by Norman, as lessees, paying between $110 and $150 per week. The parties discussed the couple’s acquisition of the property. Norman first agreed to sell the property for a total price of $70,000. Norman denies that he agreed to sell it for $70,000. The agreement was never memorialized in writing. Norman testified that he agreed to help his son and Jennifer and if Gregory and Jennifer would pay him $140 per week, which he would keep, record, until the $70,000 down payment amount was reached. Jennifer claimed rent was $110 while Norman claimed $150. Jennifer and Gregory insisted that Norman offered to sell them the property for $70,000 even though it was worth in excess of $200,000. Jennifer began paying Norman either $200 or $250 per week pursuant to the oral contract. One of the ledgers subtracted the payments from the $70,000 purchase price. Gregory and Jennifer undertook to improve the property with Norman’s approval. The upgrades were extensive. In April 2002, Norman took out a $30,000 mortgage on the property to pay bills. Gregory had borrowed from him a total of $8,000 to buy a vehicle and a boat motor. Norman subtracted the $8,000 indebtedness from the $30,000 mortgage, leaving $22,000. Norman then subtracted the $22,000 from the remaining balance in the property ledger. Jennifer testified that the $22,000 was deducted from the balance of the purchase price of the home because it was a lien on the property. Gregory moved from the property because he and Jennifer had separated. The payments to Norman ceased on October 4, 2002, with an outstanding balance of $38,100. The trial justice found by clear and convincing evidence that an oral agreement existed and was enforceable. There was substantial reliance on the agreement, as there was possession and Gregory and Jennifer made substantial improvements to the property. The judge ordered Norman to convey the land for the outstanding balance of $38,100, plus $7,800 in back rent and the assumption of the equity loan. Norman appealed.