Court Opinion

ID: 9763209
Source: CourtListenerOpinion
Date Created: 2023-08-29 02:38:46.507143+00
Date Added: 2024-06-11T12:56:30.214904
License: Public Domain

WAGNER, Chief Judge,
concurring in part and dissenting in part:
Although I agree with Judge Farrell that this court has jurisdiction1 and that a remand is required for an evidentiary hearing to resolve disputed factual issues before this case can be resolved, I disagree with his disposition of other legal issues raised by appellant, Camalier & Buckley (Camalier). In my view, resolution of Camalier’s claims are dependent upon the application of basic contract principles which are appropriate for *828consideration under the facts of this case. I reach this conclusion because of the nature of a consent decree, which creates a contractual relationship between the parties, and in light of the issues of contract law as related to the facts presented, which have been raised by the parties and are determinative of their rights under the consent order.
Since a consent decree has many of the characteristics of a contract, it should be construed basically as a contract, and principles of contract interpretation should apply. See United States v. ITT Continental Baking Co., 420 U.S. 223, 236-37, 95 S.Ct. 926, 934-35, 43 L.Ed.2d 148 (1975); United States v. Armour & Co., 402 U.S. 673, 681-82, 91 S.Ct. 1752, 1757, 29 L.Ed.2d 256 (1971); see also Moore v. Jones, 542 A.2d 1253, 1256 (D.C.1988); Ramsey, Inc. v. Davis, 66 Md.App. 717, 505 A.2d 899, 904 cert. denied, 306 Md. 514, 510 A.2d 260 (1986). Essentially, a consent order is an agreement of the parties which places them in a contractual relationship with each other and which the court has approved by order. Padgett v. Padgett, 472 A.2d 849, 852 (D.C.1984); Chernick v. Chernick, 327 Md. 470, 610 A.2d 770, 774 (1992). Like a contract, a consent order must be construed “within its four corners” and enforced as written, absent fraud, duress or mistake, Moore, supra, 542 A.2d at 1254; however, consideration of various contract principles in construing the consent order is not prohibited and “does not in any way depart from the ‘four corners’ rule of Armour,” which we followed in Moore. See Continental Baking, 420 U.S. at 238, 95 S.Ct. at 935. As the Supreme Court stated in Continental Baking,
[s]ince a consent decree or order is to be construed for enforcement purposes basically as a contract, reliance upon certain aids to construction is proper, as with any other contract. Such aids include the circumstances surrounding the formation of the consent order, any technical meaning words used may have had to the parties, and any other documents expressly incorporated in the decree.

Id.

Here, appellant Camalier relies upon certain contract principles in support of its claim of full performance under the contract entitling it to vacation of the judgment and dismissal of the case in accordance with the terms of the consent order. Specifically, Ca-malier contends that the trial court misconstrued the terms of the parties’ agreement by implicitly interposing a “time is of the essence” provision which does not appear in the consent order.2 Appellant contends that the contract contains no provision or other language in the consent order which may be construed as making time of the essence. Indeed, there is no dispute that there is no explicit “time is of the essence” provision in the consent order. It has been held that even the specification of a particular time schedule, as appears in the consent order in this case, does not serve to make time of the essence. See Fitz v. Coutinho, 136 N.H. 721, 622 A.2d 1220, 1223 (1993). Generally, time will be considered to be of the essence in a contract where it is stated in specific terms or “where definite terms of the contract show that the parties regarded the time of performance to be of vital importance, or where the nature of the property or the exigencies of the transaction make timely performance essential.” Siegel v. Banker, 486 A.2d 1163, 1165 (D.C.1984); Drazin v. American Oil Co., 395 A.2d 32, 34 (D.C.1978).
In this case, there is language in the consent order which tends to support Camalier’s claim that the installment payment dates were not determinative of Camalier’s right to have the judgment vacated upon completion of the specified payments. The consent order reads in pertinent part as follows:
If the tenant [Camalier] makes all payments required under paragraphs (1), (3), (4) and (5) between the time of the entry hereof and December 1, 1992, then upon the final payment due December 1, 1992, *829this Judgment shall be deemed fully satisfied and shall be of no further force or effect and, upon tenant’s motion, shall be vacated and the case dismissed.
(Emphasis added.) The foregoing passage may be read fairly to mean that if the payments were made in full at any time between the time of the entry of judgment and December 1, 1992, then the tenant would be entitled to have the judgment set aside. The paragraph which follows relates to remedies which Sandoz has upon Camalier’s failure to make the payments.3 At the very least, the clause creates ambiguities about whether upon payment in full in accordance with the preceding paragraph, Camalier would be entitled to vacation of the judgment. Where provisions of a contract are reasonably susceptible of different constructions or interpretations, it is ambiguous, and extrinsic evidence may be required to determine its meaning. See Young v. Delaney, 647 A.2d 784, 790-91 (D.C.1994); Rivers & Bryan, Inc. v. HBE Corp., 628 A.2d 681, 635 (D.C.1993); Howard Univ. v. Best, 484 A.2d 958, 967 (D.C.1984). A question was raised for the trier of fact which was not resolved by the trial court. See Rivers, 628 A.2d at 635. Similarly, whether time is of the essence and a delay in payments constitutes a material breach of a contract is a question for the trier of fact based upon the surrounding circumstances. Restatement (Second) of CONTRACTS § 241 & cmt. a at 237 (1981); see also Siegel, supra, 486 A.2d at 1166 (language and surrounding circumstances indicate clear intent of parties to make time of the essence).
This court’s opinion in Suitland Parkway Overlook v. Cooper, 616 A.2d 346 (D.C.1992) does not dictate a contrary result. In Suit-land, unlike this case, the consent order contained a “time is of the essence” clause.4 Id. at 348. In light of the explicit terms of the contract in Suitland, which made time of the essence and any breach non-curable, the trial court explained to the tenant that she would not even be able to redeem her tenancy in the event of non-compliance. In Suitland, not only was “time is of the essence” expressed in the consent order, but the landlord also evidenced its intent to enforce specifically the time requirements in a subsequent agreement and by moving to evict the tenant. Id. Therefore, this court held that the trial court’s ruling that a late payment constituted a de minimis breach of the consent judgment effectively modified the express terms of the parties’ agreement. Id. at 349-50.
This case is quite different. Unlike the landlord in Suitland, not only did Sandoz not bargain for a “time is of the essence” clause nor a non-curable breach clause, it also accepted all payments and never sought to enforce the judgment for possession by applying for a writ of restitution. Moreover, nothing in the consent order suggests that Camalier would be foreclosed from taking the customary steps to relieve itself from a forfeiture of the lease under the doctrine of Trans-Dux Radio City Corp. v. Service Parking Corp., 54 A.2d 144 (D.C.1947), in the event that Sandoz applied for a writ of restitution. In any event, that aspect of the matter is not before the court because San-doz has never sought a writ of restitution.
In summary, appellant Camalier sought unsuccessfully in the trial court to enforce the terms of a consent judgment which provided that upon full payment of the money judgment of $48,598.58 plus interest and various other payments between the time of entry of the judgment and December 1, *8301992,5 upon Camalier’s motion, the judgment “shall be vacated and the case dismissed.”6 Camalier contended factually, with a supporting affidavit, that it had complied with the terms of the consent order which entitled it to vacation of the judgment and dismissal of the case. Appellee Sandoz by a counter affidavit contended otherwise. For the reasons stated by Judge Farrell, I agree that appellant on remand must be afforded a hearing to resolve the factual disputes. For the reasons stated in this opinion, in my view, the trial court must also resolve any ambiguities in the consent order and any factual disputes applying basic contract principles.7

. Appellant filed a motion to enforce judgment which the trial court denied. Although the opposing parly, Sandoz, may have a potential claim to enforce judgment also, in this case, no such claim was filed or pending when appellant appealed from the order denying it relief. Unquestionably, a party may seek to enforce a final judgment or order by motion, and upon denial of relief may have the court’s order reviewed in this court as a final order.

. According to the affidavit presented by appellee in the trial court, appellant made every payment due under the consent order a few days late, except for accrued interest, which was paid approximately two months late. As to the latter, Camalier contended that there was a mutual mistake of fact between the parties and that it paid within a reasonable time after the matter was resolved and a demand was made.

. This paragraph reads:
Upon failure of the tenant to make any payments as hereinabove agreed, through December 1, 1992 the landlord, upon filing an Application for Termination of Stay and with 5 days Notice to Defendant of L & T Form 5 and without further order of Court, shall be entitled to have this stay set aside and vacated, to have immediate issuance of a writ of restitution, and to have the right to take any action permitted under law to collect the Judgment herein.

. An amended consent order in Suitland Parkway stated that “[t]ime is of the essence” and that it was
the express understanding of the parties that the landlord would not have entered into this agreement but for the promise of the tenant(s) to pay rent on a timely basis and that the failure of the [tenant] to make timely payment as agreed herein shall be deemed as a non-curable breach of this agreement.
Suitland, supra, 616 A.2d at 348.

. The consent judgment also included a judgment for possession of the real property, which was the subject of the action, with a stay of execution of both judgments conditioned upon specific payments of rent and arrearages as well as real estate taxes. Upon failure of the tenant to comply, Sandoz had the right to file an application to terminate the stay upon filing of L & T Form 5, which is an application for termination of stay of execution and notice of the immediate issuance of a writ of restitution. Sandoz had not availed itself of this remedy by the time that Camalier sought to have the judgment vacated.

. The pertinent language of the provision reads as follows:
If the tenant [Camalier] makes all payments required under paragraphs (1), (3), (4) and (5) between the time of the entry hereof and December 1, 1992, then upon the final payment due December 1, 1992, this Judgment shall be deemed fully satisfied and shall be of no further force or effect and, upon tenant's motion, shall be vacated and the case dismissed.

.Appellant offered other theories in support of its claim for relief including waiver of the terms of the consent order, which should be considered and resolved in the first instance by the trial court.