Cain v. Cross
State: Illinois
Court: 5th District Appellate
Docket No: 5-97-0184
Case Date: 11/21/1997
NO. 5-97-0184
IN THE
APPELLATE COURT OF ILLINOIS
FIFTH DISTRICT
_________________________________________________________________
GERALD CAIN, ) Appeal from the
) Circuit Court of
Plaintiff-Appellant, ) Union County.
)
v. ) No. 96-L-28
)
RONALD E. CROSS and ROBERT L. )
CROSS, ) Honorable
) D. D. Bigler,
Defendants-Appellees. ) Judge, presiding.
_________________________________________________________________
JUSTICE MAAG delivered the opinion of the court:
Plaintiff, Gerald Cain, filed an action seeking money damages
for breach of contract. The defendants, Ronald and Robert Cross
(collectively Cross), filed a motion to dismiss based upon the
provisions of the statute of frauds. From an order of the circuit
court granting the motion, Cain appeals.
The facts are as follows. Cain filed a complaint alleging
that Cross agreed to sell to Cain, and Cain agreed to purchase, 806
acres in Pulaski County, known as Cross Farms, for $1,000 per acre.
The agreement was not in writing. Cain claims he was to pay
$10,000 in earnest money upon making the agreement, $400,000 on the
delivery of possession, and the balance with interest at a later
date. Cain claims he made the $10,000 down payment and arranged
financing for the balance, but Cross refused to convey the property
and breached their agreement by conveying the property to a third
party. Cain alleges that he sustained money damages in excess of
$50,000 and filed this action to recover those damages.
Cross moved to dismiss, pursuant to section 2-619(a)(7) of the
Code of Civil Procedure (735 ILCS 5/2-619(a)(7) (West 1996)),
claiming that the alleged agreement for the sale of land was
unenforceable pursuant to the provisions of the statute of frauds
(740 ILCS 80/2 (West 1996)), because it was not in writing. From
the circuit court's order granting the motion, Cain appeals.
The sole issue presented for review is whether the circuit
court erred in dismissing Cain's cause of action on the basis of
the statute of frauds.
A dismissal is appropriate under section 2-619(a)(7) of the
Code of Civil Procedure when the claim asserted is unenforceable
under the provisions of the statute of frauds. 735 ILCS 5/2-
619(a)(7) (West 1996).
On review, we must consider "`whether the existence of a
genuine issue of a material fact should have precluded the
dismissal or, absent such an issue of fact, whether dismissal is
proper as a matter of law.'" Vuagniaux v. Korte, 273 Ill. App. 3d
305, 307, 652 N.E.2d 840, 841 (1995), quoting Kedzie & 103rd
Currency Exchange, Inc. v. Hodge, 156 Ill. 2d 112, 116-17, 619
N.E.2d 732, 736 (1993).
Cain claims that Cross waived the statute of frauds defense.
According to Cain, in order for Cross to raise the statute of
frauds defense, Cross also had to object to the failure to comply
with section 2-606 of the Code of Civil Procedure (735 ILCS 5/2-606
(West 1996)). It is clear that when a claim or defense is founded
upon a written instrument, section 2-606 requires a copy of the
instrument to be attached to the pleading as an exhibit. In
effect, Cain is arguing that by merely moving for a dismissal based
upon the statute of frauds, without also raising the issue of the
failure to attach a written contract as an exhibit to the
complaint, Cross by implication admitted that there was a written
contract. We disagree for the reasons we will now explain.
The statute of frauds provides in part, "No action shall be
brought to charge any person upon any contract for the sale of
lands" unless the contract or a memorandum or note thereof is in
writing and signed by the party to be charged. 740 ILCS 80/2 (West
1996). A contract alleged to be invalid on the basis of the
statute of frauds is merely voidable, not void. The contract may
be enforced unless the defendant sets up the statute as a defense.
Koenig v. Dohm, 209 Ill. 468, 476, 70 N.E. 1061, 1063 (1904). "A
man, who makes an oral contract to sell land, and violates his
agreement, and relies upon the Statute of Frauds in order to
justify himself in its non-performance, may be guilty of a wrong in
the domain of morals, but not of such a fraud as relieves against
the application of the statute." 209 Ill. at 481, 70 N.E. at 1065.
The statute of frauds defense is a substantive defense which
defeats the cause of action. Ellison v. Ellison, 372 Ill. 323, 23
N.E.2d 718 (1939); Koenig, 209 Ill. 468, 70 N.E. 1061. The failure
to attach a copy of a written contract as required by section 2-606
is a mere pleading deficiency that can be remedied easily by simply
seeking leave to amend and then attaching a copy of the written
contract. Case Prestressing Corp. v. Chicago College of
Osteopathic Medicine, 118 Ill. App. 3d 782, 455 N.E.2d 811 (1983).
Of course, if no written contract exists, then seeking leave to
amend would be fruitless. We do not believe that Cross waived or
admitted anything by moving to dismiss solely on the basis of the
statute of frauds. The requirements of section 2-606 and the
requirements of the statute of frauds are independent of one
another. Cross was free to move for a dismissal on the grounds of
the section 2-606 violation or on statute of frauds grounds or
both.
Cain's next contention is that under the doctrine of part
performance, the absence of a written contract is irrelevant. Cain
argues that by paying $10,000 in earnest money, he has partly
performed, thereby taking the agreement out of the statute of
frauds. He cites several cases that, he claims, support his
argument. We disagree.
The cases relied on by Cain to support his part-performance
argument, with only one exception, involved contracts for the sale
of goods. The single case cited that addressed a contract for the
sale of land contradicts Cain's position. That case will be
discussed later in this decision. Contracts for the sale of goods
are governed by the Uniform Commercial Code (UCC). 810 ILCS 5/2-
101 et seq. (West 1996). Under the UCC, a special statute of
frauds applicable to contracts for the sale of goods controls such
contracts. 810 ILCS 5/2-201 (West 1996). Because this case does
not involve a contract for the sale of goods, we express no view on
the requirements for part performance under the UCC.
Oral contracts for the sale of land, to become enforceable
under the doctrine of part performance, require more than the mere
payment of earnest money. "[A] payment of the purchase money alone
[for real estate], without either possession or improvements, is
not such a part performance[] as to take the case out of the
statute." Koenig v. Dohm, 209 Ill. 468, 479, 70 N.E. 1061, 1064
(1904); see also Wright v. Raftree, 181 Ill. 464 (1899).
The only case Cain cites that discusses the doctrine of part
performance in relation to a contract for the sale of land is
Pendleton v. King, 55 Ill. App. 3d 1, 370 N.E.2d 590 (1977).
Pendleton holds that in order to satisfy the requirements of the
part-performance doctrine, the buyer must take possession of the
property, pay the purchase money, either in whole or in part, and
make improvements to the land or change the property in some way in
reliance on the oral agreement. 55 Ill. App. 3d at 4, 370 N.E.2d
at 592. The only requirement Cain has met, if we accept the
allegations of the complaint as true, is the payment of earnest
money. This is simply not sufficient to remove the bar of the
statute of frauds.
Cain next claims that the complaint must be construed
liberally (735 ILCS 5/1-106 (West 1996)) so as to do justice
between the parties. Liberally construing the complaint will not
change the facts. The record is devoid of any evidence that Cain
and Cross ever entered into a written contract for the sale of
land, and Cain failed to plead the requisite elements under the
part-performance doctrine.
In any event, the doctrine of part performance does not even
apply in this case. Cain filed an action at law seeking money
damages. He claimed that he was entitled to relief based upon the
equitable doctrine of part performance. He claims that the
distinctions between equitable actions and actions at law should no
longer apply given the fact that we now have only a circuit court
rather than both a chancery court and a circuit court.
The circuit court has jurisdiction over all justiciable
matters. Ill. Const. 1970, art. VI, 9. The circuit court is
organized into divisions. 134 Ill. 2d R. 132 ("Every complaint or
other paper initiating any civil action or proceeding shall contain
in the caption the words `at law,' `in chancery,' `in probate,' ***
or other designation conforming to the organization of the circuit
court into divisions"). The chancery division of the circuit court
hears equitable matters. The unification of the court system did
not in any way change the way that equitable issues are heard and
decided. 134 Ill. 2d R. 232(b) ("equitable issues shall be heard
and decided in the manner heretofore practiced in courts of
equity"). We must reiterate, "the doctrine of part performance is
not applicable in actions at law for monetary damages ***."
Vuagniaux, 273 Ill. App. 3d at 312, 652 N.E.2d at 845.
For the foregoing reasons, the judgment of the circuit court
is affirmed.
Affirmed.
HOPKINS and WELCH, JJ., concur.
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