COURT OF
APPEALS DECISION DATED AND FILED April 12, 2011 A. John
Voelker Acting Clerk of
Court of Appeals |
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NOTICE |
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This opinion is subject to further editing. If published, the official version will appear in the bound volume of the Official Reports. A party may file with the Supreme Court a petition to review an adverse decision by the Court of Appeals. See Wis. Stat. § 808.10 and Rule 809.62. |
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APPEAL
from a judgment and an order of the circuit court for
Before
¶1 PER CURIAM. Donald Jackelen appeals those portions of a judgment and order holding him liable for a deficiency judgment following foreclosure of a land contract. Because we agree with Donald that the assignment of the land contract to him was invalid, we reverse the judgment and order to the extent they hold him liable for the deficiency.
BACKGROUND
¶2 On May 19, 2004, Merle and Maxine Nielsen sold property on a land contract to Thomas Jackelen and Brenda Smith. The same day the land contract was executed, Thomas and Smith attempted to assign their interest in the property to Thomas’s brother, Donald, by executing an “Assignment of Land Contract.” It is undisputed that Donald did not sign the assignment.
¶3 Between May 2004 and April 2009, Donald made the payments required by the land contract. After Donald stopped paying, the Nielsens sued for foreclosure, alleging that Donald, Thomas, and Smith were all responsible for the land contract’s remaining balance.[1] Following a bench trial, the circuit court granted a judgment of foreclosure against all three defendants. The court subsequently ordered that Donald be responsible for any deficiency judgment following a sheriff’s sale of the property. Donald appeals, arguing he cannot be held responsible for the deficiency judgment because the assignment of the land contract to him was invalid.
DISCUSSION
¶4 Donald argues the assignment was invalid because he did not
sign it, and it therefore violates the statute of frauds.[2] Whether a document complies with the statute
of frauds is a question of law that we review independently. See First Bank v. H.K.A. Enters., Inc.,
183
¶5 The statute of frauds applies to “every transaction by which any interest in land is created, aliened, mortgaged, assigned or may be otherwise affected in law or in equity.” Wis. Stat. § 706.001(1).[3] Transactions under § 706.001 are not valid unless evidenced by a conveyance that is “signed by or on behalf of all parties, if a lease or contract to convey.” Wis. Stat. § 706.02(1)(e). The Nielsens apparently concede that § 706.02(1)(e) required Donald to sign the assignment. Consequently, because Donald did not sign, the assignment is invalid.
¶6 The Nielsens point out that, under Wis. Stat. § 706.04, “[a] transaction which does not
satisfy one or more of the requirements of s. 706.02 may be enforceable in
whole or in part under doctrines of equity,” provided certain requirements are
met. However, the Nielsens do not
present a developed argument that the statutory requirements to enforce the
assignment in equity have been met. The
Nielsens do not explain whether “[t]he deficiency of the conveyance may be
supplied by reformation in equity,” whether “[Donald] would be unjustly
enriched if enforcement of the transaction were denied,” or whether “[Donald] is equitably estopped from asserting the deficiency.” See
Wis. Stat. § 706.04(1)-(3). We need not address undeveloped
arguments.
By the Court.—Judgment and order affirmed in part and reversed in part. Costs to Donald Jackelen.
This opinion will not be published. See Wis. Stat. Rule 809.23(1)(b)5.
[1] An amended complaint named Michael Manteufel as a defendant due to a dispute over an easement. The Nielsens’ claim against Manteufel is not relevant to this appeal.
[2] Donald also contends the
assignment was invalid because the Nielsens did not consent to it in writing,
as required by the land contract.
Because we conclude the unsigned assignment violated the statute of
frauds, we do not address Donald’s written consent argument. See
State
v. Castillo, 213
[3] All references to the Wisconsin Statutes are to the 2009-10 version unless otherwise noted.