Court Opinion

ID: 9790277
Source: CourtListenerOpinion
Date Created: 2023-08-31 01:49:55.953815+00
Date Added: 2024-06-11T08:46:50.502885
License: Public Domain

BISTLINE, Justice,
dissenting.
If the existing law is such in Idaho that the parties to this transaction, documented as it was, did not have a valid enforceable agreement, then the law is in need of reevaluation. If our existing case law is inadequate to accommodate the business transactions made in today’s business world, and if, as the Court’s opinion concedes, our law is not in accord with that in a majority of jurisdictions, it simply does not do to continue to decide 1980 controversies based on what in 1912 was thought to be the better law to follow. If the last twenty years of legislation and judicial interpretation of legislation have pointed in one particular direction, it has to be the positive trend toward uniformity among the various fifty states of the Union. Such being an admitted state of affairs, it ill behooves this Court to accept a seventy year old decision without any thought that the earlier doctrine may be found outmoded and in need of change. And, whether that takes place or not, the very fact that we continue to be a Court out of step with both the times and other jurisdictions should at least require of us that we be extremely vigilant that our decisions are at least definitely within the demarcations of prior case precedent.
Today we pass appellate judgment on a controversy where the district court quite candidly observed that, notwithstanding his findings that the parties had a sufficient meeting of the minds so as to have entered into an oral contract for the sale and purchase of the 1.64 acre parcel commonly known to all as the “Ruud Mountain Property,” he was precluded from granting relief to the buyers by the 1912 Houser case, and its progeny, as to which he declared his duty to follow and apply.1 That he was not *193happy about doing so is indicative that other sound judicial minds question the Court’s unquestioning obedience to a philosophy that was not in harmony with the general view when first espoused and which was set out in a case where the Court’s concern was more with the doctrine of mutuality of obligation than with the requirement of the statute of frauds that there be a sufficient memorandum signed by the party sought to be charged.2 The doctrine of mutuality, however, is not of any moment here, as the buyers, seeking to charge the seller to comply with his duty to convey, are for certain signatories to the memorandum. Likewise the seller has signed the check which, if it is part and parcel of the memorandum, removes from the dispute the element of mutuality which is readily seen as the overriding concern of the fair-minded Houser court. A careful reading of the Houser opinion produces the belief that the Court simply was not going to order two farmers to sell their barley to a warehouseman who had not paid anything nor promised anything in return for their agreement,. Such is not the case before us, but far more narrowly, the question presented here is whether the two documents, the letter and the check, are together a sufficient memoranda as required by the statutory provisions. I believe that it is, even without at this time placing an interpretation on our statute which comports with modern times and other jurisdictions. Briefly as can be done, I demonstrate.
I.
The buyers in their brief argue that the law allows that “an unsigned writing may be considered together with a signed writing if by express reference or sufficient internal evidence the unsigned writing is connected up with the signed writing.” The Court’s opinion, in that vein, expresses the same principle as the second of “three doctrines under which various jurisdictions allow unsigned writings to be read together with a signed writing”: “Implied reference between a signed and unsigned writing,” following which, however, the Court says that “Idaho follows the doctrine that an unsigned writing may be considered as part of the memorandum only where an express *194reference to it is made in a signed writing.” (Emphasis added.)
There does not seem to be, however, any evidence that such a doctrine is followed in Idaho. The Court labors under the belief that the case cited and quoted from, Blumauer-Frank Drug Co. v. Young, 30 Idaho 501, 167 P. 21 (1917), is a rejection of the implied reference doctrine — notwithstanding that neither the quotation nor any portion of the opinion gives mention to it.
As the opinion states, the quotation, which does not aptly fit the circumstances of the case, was a generality taken from 20 Cyc. 258 (1906). The rule there stated is that of “express reference,” also today set forth in the Court’s opinion as the first of three doctrines allowing unsigned writings to be taken together with signed writings in determining the existence of a sufficient memorandum.
The doctrine of “implied reference,” relied upon by the buyers in this case, is apparently more in vogue in modern times than it was in earlier days. Nonetheless Cyc. gives it recognition, 20 Cyc. 263, in a short statement that separate writings evidently referring to the same transaction should be construed together, citing two cases for the proposition, Strouse v. Elting, 110 Ala. 132, 20 So. 123 (1896), and Lecat v. Tavel, 3 McCord 158 (S.C.1825). In both cases, those early scholars of the law were properly impressed with the singular fact that both writings bore the same date. Unfortunately, the court is not impressed that such is also true here, or with the fact that the two writings were delivered to the seller in the same envelope.
In Strouse v. Elting, supra, the court reasoned as follows:
“It is not necessary to a compliance with the statute of frauds that the contract of the parties be evidenced by a single writing. It has always been held sufficient if the contract is so clearly evinced by two or more instruments having reference to each other as to show they were parts of the same, and together constituted the contract of the parties. The object of the statute is to protect persons from fraud, and imposition by parol evidence, in respect to the contracts and obligations provided for by the statute. The general rule is that it is not competent to connect the several papers by parol, but the several instruments must be connected by references contained in the papers themselves.
“The rule is not absolute, and the following quotation from the case of Beckwith v. Talbot, 95 U.S. 289, was cited with approval in the case of Jenkins v. Harrison, 66 Ala. 345, 360: ‘There may be cases in which it would be a violation of reason and common sense to ignore a reference which derived its significance from such proof. If there is ground for any doubt in the matter, the general rule should be enforced; but, when there is no ground for doubt, its enforcement would aid, instead of discouraging, fraud.’
“This court then continues as follows: ‘The implication of connection between the memorandum and the deed is almost irresistible, from their mere inspection, and there was no just objection to parol evidence of the contemporaneous facts and the circumstances surrounding the parties, showing that they were but parts of the same transaction.’ ” 20 So. at 126 (emphasis added).
It is readily believed that the court which in Blumauer-Frank Drug Co. v. Young, supra, accepted the one statement from Cyc., as it did, would also on a proper set of facts accept the other which is so well supported by the Strouse case. The facts before the Idaho Court, however, involved an unsigned order and, much, much later, two signed letters which obviously were not contemporary and could not possibly be said to give rise to the doctrine of implied reference, assuming that that doctrine was known to counsel and was relied upon.
Later statements by the Idaho courts are couched in much the same language as the Strouse court used. See, e. g., Dunn v. Dunn, 59 Idaho 473, 83 P.2d 471 (1938); Roundy v. Waner, 98 Idaho 625, 570 P.2d 862 (1977).
*195My research does not show that any Idaho court has ever rejected the doctrine of implied reference. Rather it appears to have never before been relied upon. Today it is, and the Court’s opinion gives it short shrift indeed by passing it off with a case based upon express reference.
The doctrine of implied reference has been recently recognized, however. The exhaustive dissenting opinion of Justice McFadden in Russell v. Russell, 99 Idaho 151, 156, 578 P.2d 1082, 1087 (1978), deals with both express reference and implied reference, quoting from creditable authority which uses language similar to that used by the Alabama court in the Strouse case, and to that in the buyers contention urged upon us today. After noting that a separate writing can be incorporated into a contract by reference, and both writings relied upon to satisfy the statute of frauds, he quotes with approval this statement:
“The writings must contain either an express reference to each other or the internal evidence of their unity, relation or connection sufficient to make parol evidence of their relation unnecessary.” Id. at 157, 578 P.2d at 1088, quoting Glockner v. Town, 42 Haw. 485, 487 (1958) (emphasis added).
That which Justice McFadden wrote is substantiated by the text Am.Jur.2d, postdating the earlier work in Cyc. by some 70 years:
“An express reference is not necessary to incorporate a separate writing in the memorandum. One writing may be connected with another either expressly or by internal evidence of subject matter and occasion. The relation of several papers relied on as together constituting a sufficient memorandum to satisfy the statute of frauds may appear either by express reference or from the nature of the contents. Separate writings which are related in subject matter may be read together to satisfy the requirement of the statute for a memorandum not only where both are signed by the party to be charged, but also where only one of them is so signed, if they are so connected that the signature appearing upon the one can be said to authenticate the other one, which is unsigned. Under such circumstances it is deemed that there is in fact a reference in the one instrument to the other. As some authorities declare, the reference required to incorporate the other paper in the memorandum is implied, or, as otherwise stated, there is an incorporation by necessary inference.” 72 Am.Jur.2d Statute of Frauds § 374 (1974).
Such being the state of the law, it remains to be determined if the two writings fall within the doctrine of implied reference.
As the Court’s opinion recites, the letter and check were dated the same date, and both the check and the letter were signed. The check was the only document signed by the seller. The letter refers to an enclosed check3 and refers to the Ruud Mountain property. The check refers to the “Ruud Mtn. lots.” Such being the state of the evidence, it requires “ ‘a violation of reason *196and common sense to ignore a reference which derived its significance from such proof.... The implication of connection between the memorandum [here the letter] and the deed [here the check] is almost irresistible, from their mere inspection Strouse, supra at 126 (emphasis added) (quoting Jenkins v. Harrison, 66 Ala. 345, 360 (1880)). Or, using the language quoted by Justice McFadden in Russell v. Russell, supra, the two writings on their face do “contain ... internal evidence of their unity, relation, or connection sufficient to make parol evidence of their relation unnecessary.” Id. at 157, 578 P.2d at 1088.
Very little more need be said. Either the viewer of the two documents is drawn to the implication of reference by the internal evidence of their unity and connection, or the viewer is not. To my mind it allows of but one conclusion.
Even were the seller to claim that there was no connection between the two documents (which here is not the case), no reasoning mind could accept such a proposition as against that which is disclosed on the face of the two documents.
II.
The Court’s opinion also finds another ground upon which the seller’s refusal to honor the transaction can be upheld. It is said that the letter is insufficient in that it does not evidence the schedule on which the note would be paid, or how it would be secured. Anyone who reads the letter will find this statement both in error and untenable, and I briefly explain why.
In the first place the seller here owns the property, and it is the seller who has title to it, not the buyer. There is not much better security in real estate transactions than the retaining, of title until the purchase price has been paid.
In the second place, the letter does not mention the word “note.” See note 3, supra. The purchase terms are quite clearly $90,000 for the property, with a down payment of 30%. $5,000 was sent (and accepted) as earnest money for application on the down payment.
It is readily apparent that the down payment would be payable upon the city giving its approval to subdividing the property into three lots. The $60,000 balance would be payable in quarterly payments, which is not difficult to mathematically compute and the unpaid principal would accrue interest at a rate of 9%% per annum. It is at most arguable whether the interest also would be paid quarterly — but there being nothing to the contrary, seller could insist on it. Four payments would mean four payments. The letter even went so far as to spell out a deed release “upon payment in full for any one of the three lots in the event we wish to sell them” (emphasis added). Indeed, little, if anything, was left to the imagination of the parties. A lawyer might have used more paper and more whereases, but could not have better embodied the salient terms.
It is true that the agreement of sale later drawn by seller provided that the $63,000 balance of the purchase price would not be paid quarterly, but would be paid monthly, and the time in which to do so was extended to sixty months. It was at this point, as evidenced by the agreement drawn by seller, that at closing the buyers became obligated to pay the down payment, receive a deed, and sign a note and trust deed — apparently to satisfy the bank that had agreed to buy the paper. None of this would be unusual. But the initial agreement was simply that stated in the letter, to which the seller acceded in signing the check and thereby accepting the money on the terms expressed in the letter.4 From that point on the parties could, and apparently did, agree upon changes and refinements to their original agreement.
*197Concluding, I submit only that Idaho law in this field again takes a turn for the worse. In 1912 it was, perhaps, not too big a problem that Idaho courts took a stance not in accord with the majority.
Today is 1981, and we are asked to consider and apply the doctrine of implied reference. In the Court’s opinion it is considered only to the extent that it is mentioned, and passed upon and rejected by resort to an inapplicable opinion rendered at an early time when the doctrine was practically unknown. We are, I fear, out of touch with reality. The transaction entered into in this case was typical of a good many, if not most, transactions taking place on a regular basis. A final agreement was reached over the telephone, and one is not hallucinating to surmise that it ended with one telling the other to send a check and a letter confirming the agreement reached. And it was done, and would have stayed done except for a change in ownership, and a new seller reneging on the hope that Idaho case law would allow an escape from an obligation when escape was not generally available elsewhere. The trial court was, of course, as we are not, bound to accept Idaho case law as it was or seemed to be.

. The trial judge’s memorandum decision prefaced his findings of facts and conclusions of law with these remarks:
“The plaintiffs have alleged and ‘proved’ that an oral agreement was reached for the sale of that land on January 21, 1977. The sole *193defense of substance is I.C. 9-505(5), the Idaho statute of frauds:
In the following cases the agreement is invalid unless the same or some note or memorandum thereof, be in writing and subscribed by the party charged, or by his agent. (5) ... an agreement ... for the sale, of real property, or of an interest therein ... subscribed by the parties sought to be charged.
The statute of frauds requires that a contract for the sale of land (or a memorandum thereof) be reduced to writing and signed by the ‘party to be charged.’ The purpose of the statute is commonly thought to be the prevention of fraudulent assertions of oral contracts for the sale of land. Other objectives may be equally as important, however. The statute effectively insulates from litigation nearly all completely oral transactions involving the sale of land, thus contributing to the stability of title and marketability of land generally. The statute may also stimulate the use of formal written contracts, certainly an advisable practice for transactions as important as land sales. On the other hand, the statute can thwart legitimate contractual expectations. A party may generally repudiate a land sale agreement prior to its embodiment in written form. Courts have attempted to apply the statute to protect legitimate contractual expectations without jeopardizing the statutory objectives. Hence, the doctrines of part performance and estoppel have been used to avoid harsh application of the statute. Similarly, the memorandum requirement has been liberally construed to allow sketchy memoranda of contractual agreements, to allow more than one document to constitute the memorandum, and to allow a subsequent memorandum to substitute an earlier agreement. In recent years, there has been a general trend toward greater protection of contractual expectations. This development has had the unhappy side-effect of muddying the law to the extent that the statute may now breed more litigation than it prevents. Certainly, the ascertainment of current Idaho law on the statute of frauds is difficult as the older cases may have been undercut by the recent trend of authority. This Court, however, cannot ignore Idaho Supreme Court cases regardless of their vintage.”

. The statute is couched in terms of “party charged.” The statute is meaningless, however, until the situation actually arises where one party attempts to hold the other to his agreement. Hence I say “party sought to be charged,” which I believe eminently correct.

. The letter reads as follows:
“Dear Phil,
“This letter will confirm our phone conversation regarding the acreage referred to as the Ruud mountain property. The agreement is as follows: Purchase price of $90,000, payable at 30% down with the balance to be payable quarterly at an annual interest rate of 93/<%. It is further understood that Sun Valley Company will agree to subordinate in the event we wish to obtain a construction loan to build one or more houses on the subject property. It is further understood that Sun Valley Company will provide a deed release upon payment in full for any one of the three lots in the event we wish to sell them. Further this agreement is subject to approval of the City of Sun Valley to subdivide the subject acreage into (3) three lots of more or less equal size.
“Enclosed is a check in the amount of $5000.00 as a deposit which in the event we are turned down by the City of Sun Valley shall be returned to us. This agreement shall be subject to the approval of Fritz Frey no later than February 15th 1977.
“As you know Fritz is in Europe and is expected to return around the end of January. We will contact you upon his return to resolve the deal.
“I hope you get some snow soon!
Regards,
Fritz.”

. I see no merit to footnote 1 in the Court’s opinion wherein it suggests that Conger in accepting the check did not authenticate the contents of the letter. On the contrary, the trial court stated specifically in his findings of fact and conclusions of law that “[t]he testimony and conduct of Mr. Conger indicates a ‘grumbling acceptance’ but an acceptance nevertheless.”
A reading of Mr. Conger’s testimony shows that from the time he received the letter and the check, he considered that an agreement had *197been reached, although he was not pleased at some of the provisions which he said appeared for the first time in the letter. He felt that those items were workable, and constantly pressured the buyers to live up to the agreement — mainly so that Janss (seller) would get the money from the down payment and by assigning the paper on the balance.