COURT OF APPEALS DECISION DATED AND RELEASED June
8, 1995 |
NOTICE |
A party may file with the Supreme Court a petition to review an
adverse decision by the Court of Appeals pursuant to § 808.10 and Rule 809.62, Stats. |
This opinion is subject to further editing. If published, the official version will appear in the bound
volume of the Official Reports. |
No. 95-0270
STATE OF WISCONSIN IN
COURT OF APPEALS
DISTRICT IV
DWIGHT
ZIETLOW
AND
RACHEL ZIETLOW,
Plaintiffs-Appellants,
v.
DAVID
STOKES
AND
ANN STOKES,
Defendants-Respondents.
APPEAL
from an order of the circuit court for Monroe County: JAMES W. RICE, Judge. Cause
remanded.
VERGERONT,
J.[1] Dwight
and Rachel Zietlow appeal from an order requiring that they deed to David and
Ann Stokes certain property provided that the Stokes pay the sum of
$2,049. They claim that the Stokes'
counterclaim was not properly before the court in the Zietlows' eviction
action, that the trial court did not have the authority to determine interests
in real property in a small claims action, and that the writing the trial court
relied on violates the statute of frauds.
We conclude the Zietlows have waived the first two issues. As to the statute of frauds issue, we remand
to the trial court as explained below.
The
Zietlows, pro se, filed a small claims summons and complaint against the Stokes
stating:
On April 20, 94,
we verbally asked David and Ann to be off the property, because 12 months had
passed and there were no payments received for 1 year. We reimbursed them $917.25 plus $550.48 (in
electricity). On June 23rd we gave them
a written letter stating termination as of that date, and asked them to be
moved by July 21, 94.
The Stokes, pro se, filed an answer stating: "We dispute this matter and wish for a
trial date."
A
trial was held to the court on September 6, 1994. The Zietlows and the Stokes both appeared without counsel. Rachel Zietlow testified that the Zietlows
had an agreement to rent some land to the Stokes with an option to buy. The Stokes were to pay $240 a month until
the note at the bank was paid off and then the Stokes would get a deed. The Stokes moved onto the property, living
in a trailer they brought, in August 1992.
Rachel Zietlow testified that the Stokes made payments for ten months
and then stopped in May 1993. The
Zietlows, hoping to get the Stokes to move, paid them $917, which represented
the amount of principal paid out of the $2,400 minus an electric bill of
$550.48 which the Zietlows paid for electricity used by the Stokes. The Zietlows asked the court to evict the
Stokes and order them to pay $650 plus court costs. The Zietlows arrived at the $650 figure by calculating rent at
$50 per month for the thirteen months the Stokes had lived on the property
without paying rent until the Zietlows sent them the eviction letter.
David
Stokes produced copies of checks showing payments to the Zietlows that, the
trial court found, totaled $2,510. He
also produced a writing that Rachel Zietlow agreed was the agreement between
the parties. The writing was unsigned
and undated, and states:
Lease/Option to Buy
10 acres.
All of which is east of the existing road with the exception [of] a
small amount of land at the north end of the property (the 10 acres) which will
be west of the road.
Possession of the
land will go like this. Will [sic] will
start on one acre. Once you have paid
$800.00 on the principal of my bank note then you own it. Then when you pay the second $800.00
principal on my bank note then you may take possession of the second acre. And the same for the 3rd, 4th, etc. until 3
years is up. On August 1, 1995, you
will have to decide whether you want to buy any more acreage or if you are
happy with what you have. If you want
the remainder of the 10 acres, then you will have to pay us in full at that
time and we will get you a deed for the 10 acres. If you wish to not own any more, we will at that time give you a
deed for what you have paid for.
David
Stokes also testified regarding improvements he made on the property. The court made findings as to the cost of
those and the amount of interest the Stokes had paid. The court concluded that there was a contract to sell the
property to the Stokes and it was enforceable notwithstanding the statute of
frauds. It ordered the Zietlows to deed
two acres of land to the Stokes if the Stokes within thirty days paid to the
clerk of courts $2,049. This figure
included court costs and back rent of $650.
If the Stokes did not pay within that time, a writ of restitution was to
issue for removal of the Stokes and their trailer. In the event the parties could not agree on the description of
the property, a hearing was scheduled for November.
The
Stokes, through counsel, moved on October 6, 1994, for a clarification of how
the $2,049 was computed and how a legal description of the two acres was to be
determined. On October 31, 1994, the
Zietlows, through counsel, requested that
the court enter a written order, enter judgment as of October 6, 1994, and
issue a writ of restitution because the bank would not cover the check
deposited by the Stokes on October 6 with the clerk of courts. A hearing was held on the Stokes' motion on
November 3, 1994, by which time the Stokes had paid a money order in the
amount of $2,049 to the clerk of courts.
The
court determined that $2,049 was the amount due, that the Stokes had complied
with the order, and that the Zietlows had to provide the deed. No decision was made on the description of
the property to be deeded pending availability of the transcript from the
September hearing. The Zietlows appeal
from the order, dated December 19, 1994, which directed them to deed to the
Stokes two acres of land on which the trailer house and addition rests if the
Stokes pay $2,049 to the clerk of courts by October 6, 1994.
As
an initial matter, we note that the December 19, 1994 order states "if the
parties cannot agree on the two acres to be deeded, a hearing will be held ...
to address the property to be transferred." While neither party has questioned the finality of the order,
this court must inquire into its jurisdiction.
State ex rel. Teaching Assistants Ass'n v. Univ. of
Wisconsin-Madison, 96 Wis.2d 492, 495, 292 N.W.2d 657, 659 (Ct. App.
1980). This language in the order
indicates that the trial court contemplated further proceedings in order to
resolve the dispute. The order,
therefore, is not a final order appealable as of right. See Radoff v. Red Owl Stores,
Inc., 109 Wis.2d 490, 326 N.W.2d 240 (1982). However, a nonfinal order may be reviewed as a permissive appeal
under § 808.03(2), Stats. Under the circumstances of this case, we
conclude that discretionary review should be granted. Therefore, we proceed to address the merits of the appeal.
The
Zietlows contend that the Stokes' counterclaim for title to the Zietlows'
property was not properly before the court because the Stokes' written answer
did not state that the Zietlows' title was in dispute.[2] The Zietlows did not raise this objection at
the September hearing. Although they
did question why title was an issue when what they wanted was eviction, they
did not ask to have the hearing rescheduled; they did not state they wanted to
talk to a lawyer before proceeding.
Instead, they participated in the hearing at which the issue of title
was heard and decided. Then, when they
did retain counsel, they did not move for reconsideration or relief from
judgment on this or any other ground.
On appeal, the Zietlows claim in general terms that the lack of written
notice of the title dispute was unfair, but they do not explain how they were
prejudiced by it.
Failure to object at trial generally waives
those objections for purposes of appeal.
See State v. Fawcett, 145 Wis.2d 244, 256, 426 N.W.2d 91,
96 (Ct. App. 1988). As a general rule,
we do not consider issues not raised before the trial court, although we may do
so in the proper case. County of
Columbia v. Bylewski, 94 Wis.2d 153, 171-72, 288 N.W.2d 129, 138-39
(1980). We see no compelling reasons to
address this issue since the Zietlows have not shown they were prejudiced by
the Stokes' failure to state in their answer that they were putting title in
issue.
For
the same reason, the Zietlows have waived their objection that the matter
should have been tried under the procedures of chs. 801 to 847, Stats., not small claims procedures.[3] It is clear that the question of the
landlord's title may be raised in an eviction action. Scalzo v. Anderson, 87 Wis.2d 834, 847-48, 275
N.W.2d 894, 899 (1979). The Zietlows do
not dispute this. Their only point here
is that the regular rules of civil procedure, not small claims procedure,
should have governed the proceedings before the trial court. The Zietlows did not raise this issue at the
September hearing. Their counsel did
not raise this issue at any time before the trial court. And the Zietlows do not explain how they were
prejudiced by the application of small claims procedures. Under these circumstances, we will not
address this issue.
The
Zietlows also contend that the writing produced by David Stokes at the hearing
was void under the statute of frauds.
We agree that the writing does not contain the formal requisites of
§ 706.02, Stats. However, § 706.04, Stats., provides:
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 all of the elements of the transaction are
clearly and satisfactorily proved and, in addition:
(1) The deficiency of the conveyance may
be supplied by reformation in equity; or
(2) The party against whom enforcement is
sought would be unjustly enriched if enforcement of the transaction were
denied; or
(3) The party against whom enforcement is
sought is equitably estopped from asserting the deficiency. A party may be so estopped whenever,
pursuant to the transaction and in good faith reliance thereon, the party
claiming estoppel has changed his or her position to the party's substantial
detriment under circumstances such that the detriment so incurred may not be
effectively recovered otherwise than by enforcement of the transaction, and
either:
(a) The grantee has been admitted into
substantial possession or use of the premises or has been permitted to retain
such possession or use after termination of a prior right thereto; or
(b) The
detriment so incurred was incurred with the prior knowing consent or approval
of the party sought to be estopped.
Section
706.04, Stats., as it plainly
states, is an equitable provision. The
standard of review on matters of equity is whether the findings of the trial
court are against the great weight and clear preponderance of the evidence. John v. John, 153 Wis.2d 343,
353, 450 N.W.2d 795, 800 (Ct. App. 1989), cert. denied, 498 U.S. 814
(1990).[4]
The
trial court recognized that the writing did not meet the requirements of the
statute of frauds, but concluded it was nevertheless enforceable because the
Stokes had changed their position in reliance on the agreement and the Zietlows
had knowingly permitted that to happen.
These findings are not against the great weight and clear preponderance
of the evidence. We conclude that
§ 706.04(3), Stats., is met.
The
Zietlows are correct that in addition to meeting the requirements of either
subsecs. (1), (2) or (3), "the elements of the transaction must be clearly
and satisfactorily proven." This
does not mean, as the Zietlows suggest, that the description of the property
must be included in the writing.[5] But it does mean that the court must be able
to find by clear and satisfactory evidence the property subject to the
transaction. Because the trial court
contemplated doing this after the entry of the December 19 order, we are unable
to determine on this record whether this requirement of § 706.04, Stats., is met. We therefore remand to the trial court in
order for it to determine whether this requirement is met.
By
the Court.—Cause remanded.
This opinion will not be
published. See Rule 809.23(1)(b)4, Stats.
[2] Section 799.43, Stats., permits a defendant to plead orally or in writing
"except that if the plaintiff's title is put in issue by the defendant,
the answer shall be in writing and subscribed in the same manner as the
complaint."
[3] Section 799.02, Stats., provides that if a counterclaim is filed that arises
out of the same transaction and is beyond the types of actions specified in
§ 799.01, Stats., the person
filing the counterclaim shall pay the fee prescribed under § 814.62(3)(b),
Stats., and the matter, with
certain exceptions, will be tried under the procedure in chs. 801 to 847, Stats.
[4] This standard is essentially the same as the
"clearly erroneous" standard.
Noll v. Dimiceli's, Inc., 115 Wis.2d 641, 643, 340 N.W.2d
575, 577 (Ct. App. 1983).
[5] The cases cited by the Zietlows deal with the
requirements of the statute of frauds. See
Wadsworth v. Moe, 53 Wis.2d 620, 193 N.W.2d 645 (1972); Trimble
v. Wisconsin Builders, Inc., 72 Wis.2d 435, 241 N.W.2d 409 (1976); Wiegand
v. Gissal, 28 Wis.2d 488, 137 N.W.2d 412 (1965). They do not deal with the application of
§ 706.04, Stats.