FOR PUBLICATION
ATTORNEY FOR APPELLANT: ATTORNEY FOR APPELLEE:
MAGGIE L. SMITH LARRY L. EATON
Sommer Barnard Ackerson Versailles, Indiana
Indianapolis, Indiana
IN THE
COURT OF APPEALS OF INDIANA
FRANK WENNING, )
)
Appellant-Petitioner, )
)
vs. ) No. 69A05-0401-CV-54
)
LOTTIE CALHOUN, )
)
Appellee-Respondent. )
APPEAL FROM THE RIPLEY SUPERIOR COURT
The Honorable James B. Morris, Judge
Cause No. 69D01-0210-SC-617
July 19, 2004
OPINION - FOR PUBLICATION
KIRSCH, Chief Judge
Frank Wenning appeals the trial courts judgment ordering specific performance of a land
sale contract executed between Wenning and Lottie Calhoun. He raises two issues
for review, one of which we find dispositive: whether a trial court
may order specific performance of a land contract where the contract does not
specifically describe the land that is the subject of the contract.
We reverse and remand with instructions.
FACTS AND PROCEDURAL HISTORY
Wenning owned acreage in Ripley County, Indiana. In 2001, he fell behind
on his mortgage payments and needed to raise cash. In December, he
entered into an oral agreement to sell three acres to Calhoun, the wife
of his nephew, for $9,000.00, which she was to pay the following month
from a settlement that she anticipated. Calhoun moved a mobile home onto
the property, arranged to have utilities connected, and built a driveway.
The following month, Calhoun learned that she would not be receiving the settlement,
so she agreed to get financing for the purchase price from a bank.
The parties therefore executed a written agreement (the Contract) for the sale
of the three acres on January 19, 2002. Like the parties oral
agreement, the Contract did not describe the land being conveyed. It stated:
To Whom it May Concern!
I, Frank Wenning, am saleing[sic] 3 acres of 28 acres to Lottie Calhoun
with opion[sic] to buy more if desired.
I am saleing[sic] at $3,000 a[sic] acre for a total of $9,000.
She has made a payment of $1,200.00 for Dec. 1, 01 to March
15
th 2002 at $350.00 a month untill[sic] paid in full or Settlement is
received then will pay off in full.
Lottie Calhoun has already had El, water, & phone services ran [sic] to
5910 W. Fairground Rd. Osgood, Ind. 47037 & Lottie & Dewain Calhoun are
Living on the 3 acres at this time.
Appellants Appendix at 7.
Calhoun was unable to obtain a loan for the purchase price, but she
paid Wenning $500 in February 2002 and continued to make monthly payments of
$350.
In October 2002, Wenning filed a complaint asking the trial court to award
him immediate possession of the land. Calhoun counterclaimed for specific performance.
In December 2002, the trial court conducted a bench trial and thereafter entered
its judgment ordering Wenning to specifically perform the Contract. Wenning now appeals.
DISCUSSION AND DECISION
Wenning appeals the trial courts grant of specific performance. Specific performance is
an equitable remedy that the trial court may grant in its discretion.
Salin Bank & Trust Co. v. Violet U. Peden Trust, 715 N.E.2d 1003,
1007 (Ind. Ct. App. 1999), trans. denied (2000). The grant of specific
performance directs the performance of a contract according to the precise terms agreed
upon, or substantially in accordance therewith. Id. A trial courts decision
to grant specific performance is reviewed for an abuse of discretion and, when
conducting such review, we do not reweigh the evidence. Id. at 1008.
Wenning contends that the description of the land in the Contract is too
indefinite to be specifically enforced. Generally, if any essential elements are omitted
or left obscure and undefined, so as to leave the intention of the
parties uncertain respecting any substantial terms of the contract, the case is not
one for specific performance. Johnson v. Sprague, 614 N.E.2d 585, 588 (Ind.
Ct. App. 1993). A contract to convey real estate generally may not
be enforced by specific performance unless the evidence is such that the court
may determine with reasonable certainty what property the promisor agreed to convey.
Larabee v. Booth, 463 N.E.2d 487, 491 (Ind. Ct. App. 1984). We
applied this rule in Wilson v. Wilson, 134 Ind. App. 655, 660, 190
N.E.2d 667, 669 (1963), where we held that a written contract for the
sale of real estate that described the land at issue as 137 acres
in a certain township in a particular county in Indiana was not specifically
enforceable because the description was too indefinite.
By contrast, in Larabee, 463 N.E.2d at 491, another litigant argued that the
court erred in ordering specific performance of the contract because the property to
be conveyed was not described with sufficient certainty. There, the parties stipulated
that, before the suit was filed, the grantor commissioned a surveyor to survey
the land that she had given to the grantees. We noted that
this survey yielded a very precise metes and bounds description of the parcel,
on which the trial court was entitled to base its order for specific
performance. Therefore, we held that the boundaries of the property conveyed were
established with sufficient certainty to justify the courts order of specific performance.
Id.
Here, the only designation in the Contract of the land at issue is
three acres of Wennings twenty-eight acres, plus the street address of 5910 W.
Fairground Rd. There is simply no way for third parties to discern
from this description precisely which three acres Wenning intended to convey. Accordingly,
the contract is too indefinite to specifically enforce because it is impossible to
determine how to enforce it.
This conclusion, however, does not end the analysis. Although Calhoun may not
be entitled to specific performance, it does not follow that she has no
remedy. Another contract remedy is rescission. Rescission of a contract is
the annulling, abrogating, or unmaking of a contract.
Van Bibber Homes Sales
v. Marlow, 778 N.E.2d 852, 857 (Ind. Ct. App. 2002), trans. denied
(2003)
.
The remedy of contract rescission functions to restore the parties to their
precontract position, that is, the status quo. Id.; A.J.s Automotive Sales, Inc.
v. Freet, 725 N.E.2d 955, 967-68 (Ind. Ct. App. 2000), trans. denied.
Upon the rescission of a contract, a party must return the property received
or the reasonable value thereof if return of the property is impossible.
Hart v. Steel Prods., Inc., 666 N.E.2d 1270, 1276 (Ind. Ct. App. 1996),
trans. denied
(1997)
.
Here, rescission of the contract is appropriate. Calhoun is entitled to the
return of all of the amounts she expended in reliance on the void
Contract. The evidence at trial showed that Calhoun made numerous payments to
Wenning and expended sums to have utilities connected and a driveway constructed.
We remand to the trial court for a determination and entry of a
judgment against Wenning in this amount.
Reversed and remanded with instructions.
NAJAM, J., and RILEY, J., concur.