Terry Huber v. Roger Hamilton ( 2015 )


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  •                                                                       May 28 2015, 7:22 am
    ATTORNEY FOR APPELLANT                                    ATTORNEY FOR APPELLEE
    James E. Ayers                                            Gregory H. Miller
    Wernle, Ristine & Ayers                                   Crawfordsville, Indiana
    Crawfordsville, Indiana
    IN THE
    COURT OF APPEALS OF INDIANA
    Terry Huber,                                              May 28, 2015
    Appellant-Defendant,                                      Court of Appeals Case No.
    54A01-1404-PL-154
    v.                                                Appeal from the Montgomery Circuit
    Court
    Roger Hamilton,                                           The Honorable Harry A. Siamas,
    Judge
    Appellee-Plaintiff.
    Case No. 54C01-1309-PL-709
    Vaidik, Chief Judge.
    Case Summary
    [1]   Two parties executed a land contract for the sale of commercial real estate in
    Crawfordsville, Indiana. The Statute of Frauds requires land contracts to be in
    writing. The written land contract called for monthly payments, with a balloon
    payment to be made at the end of the term. When the buyer was not able to
    make the balloon payment at the end of the term, he approached the seller
    Court of Appeals of Indiana | Opinion 54A01-1404-PL-154 | May 28, 2015                 Page 1 of 17
    about extending the due date for the balloon payment. Although the parties
    made an oral agreement about extending the due date for the balloon payment,
    each side presented a different version of that agreement.
    [2]   The trial court, which could not determine the details of the parties’ agreement
    because it found that the evidence was unpersuasive both ways, concluded that
    the oral agreement was unenforceable because it was not in writing. Therefore,
    the trial court concluded that the buyer breached the land contract when he
    failed to make the balloon payment when it was originally due.
    [3]   We agree with the trial court that the Statute of Frauds applies to the parties’
    oral agreement to modify the written land contract and, therefore, the oral
    agreement is unenforceable because it was not reduced to writing.
    Furthermore, we find that neither party has met its heavy burden of removing
    the oral agreement from the Statute of Frauds based on the equitable doctrine of
    promissory estoppel. Finally, because the oral agreement is unenforceable, we
    agree with the trial court that the buyer breached the written land contract by
    failing to make the balloon payment when it was originally due.
    Facts and Procedural History
    [4]   On November 15, 2007, Roger Hamilton sold commercial real estate located at
    111, 113-115, and 127 West Market Street in Crawfordsville to Terry Huber.
    Huber operated Old Town Pizzeria at 127 West Market Street, and there were
    tenants—Moore’s Jewelry and Digger’s Café—in the other buildings.
    Court of Appeals of Indiana | Opinion 54A01-1404-PL-154 | May 28, 2015    Page 2 of 17
    According to the terms of the parties’ contract,1 the purchase price was
    $150,000, with a down payment of $20,000. Ex. 1. The balance of $130,000
    was payable in monthly installments of $1132.44 with 6.5% interest from
    January 2, 2008, to November 30, 2010, at which point “the then unpaid
    balance shall be payable in full unless renegotiated . . . .” 
    Id. [5] The
    contract also provides that Huber would receive title to the properties
    “upon the payment of the money and interest at the time and in the manner
    [specified in the contract], and the prompt and full performance by [Huber] of
    all his covenants and agreements [specified in the contract] . . . .” 
    Id. The contract
    states the following regarding breach of the contract:
    In the event [Huber] shall, for any reason, fail or refuse to make any
    payment due under this contract, including annual payment, taxes,
    assessments or insurance premiums for a period of thirty (30) days
    after the same become due, and upon an additional thirty days’ written
    notice, [Huber] shall then be deemed to be in default of the contract.
    In that event, the entire balance of principal and interest due shall
    become due and payable at the option of [Hamilton]. No delay on the
    part of [Hamilton] in exercising this option shall operate as a waiver or
    preclude the exercise of such option at any time during the
    continuance of such default or upon the occasion of any subsequent
    default. [Hamilton] shall be entitled to recover judgment against
    [Huber] for such sum without relief from valuation, appraisement laws
    together with Court costs, attorney’s fees and any other damages
    which may have been caused by [Huber’s] breach of this contract.
    [Hamilton] shall also have the right to recover the judgment in whole
    or in part by foreclosure of [Huber’s] interest hereunder and the sale of
    the real estate, and shall have the right to have a receiver appointed to
    1
    Huber’s attorney prepared the “Installment Purchase Agreement” that the parties signed.
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    take charge of, rent, manage and conserve the real estate herein
    described during the pendency of any foreclosure action.
    
    Id. [6] As
    the due date for the balloon payment approached in late 2010, Huber talked
    to Hamilton about extending the contract.2 According to Huber, Hamilton told
    him that he could pay an additional $300 per month, in cash, in order to “keep
    the contract going”; Huber said there was no discussion on the timeline or how
    the $300 would be applied. Tr. p. 9-10, 22. According to Hamilton, however,
    he “agreed . . . [to] go another year [in order to] give [Huber] time to find the
    financing.” 
    Id. at 69.
    In addition, Hamilton said he told Huber that the
    additional $300 per month would not be applied to principal but rather was a
    penalty for not paying the balloon payment on time. 
    Id. at 70.
    Hamilton
    submitted his tax returns showing that he reported the additional $300 per
    month. In any event, the agreement to extend the contract was oral and never
    reduced to writing.
    [7]   Huber continued to make the monthly contract payments plus the additional
    $300 per month. He made thirty-four additional payments of $300—for a total
    of $10,200—between December 2010 and September 2013. In December 2011
    2
    Huber claims that he could not get financing because underground storage tanks were below the pizza shop,
    and Hamilton did not tell him about the tanks when they executed the land contract. According to
    Hamilton, however, he told Huber about the underground storage tanks (all but one of which had been
    removed) and did not believe there were any environmental issues with the property. The court noted these
    conflicting versions in its findings. See Appellant’s App. p. 30 (Finding No. 5).
    Court of Appeals of Indiana | Opinion 54A01-1404-PL-154 | May 28, 2015                         Page 4 of 17
    Hamilton asked Huber about making the balloon payment; Huber said he
    would but never did.
    [8]   In August 2013 Hamilton’s attorney sent Huber a written notice of default and
    demanded payoff within thirty days:
    Mr. Hamilton advises that you were to have paid the balance of the
    purchase price . . . by November 30, 2010. As a result of your failure
    to pay the balance of the purchase price by November 30, 2010, you
    are in default of your Installment Purchase Agreement.
    *****
    Your failure to pay the [balance] within thirty (30) days of the date of
    this letter will result in Mr. Hamilton re-taking the subject real estate
    and directing any and all rent payments from any and all tenants to
    him. In addition, Mr. Hamilton will have the right to file a lawsuit
    against you to collect any monies remaining owing to him under the
    Installment Purchase Agreement.
    Ex. D.
    [9]   Huber filed a complaint for declaratory judgment against Hamilton on
    September 13, 2013. Huber alleged that the written contract provided that the
    unpaid balance would be “due and payable at the end of November 2010,
    unless renegotiated”; however, the parties renegotiated the contract “to provide
    that the balance[-]due provision was declared void and the periodic[-]payments
    provision extended indefinitely until payment in full.” 3 Appellant’s App. p. 8,
    9. Huber alleged that for consideration of the modification, he agreed to pay an
    3
    According to Huber’s amortization calculation, the contract would be paid off in July 2019. See Appellant’s
    Br. p. 11 (citing Appellant’s App. p. 19, 39).
    Court of Appeals of Indiana | Opinion 54A01-1404-PL-154 | May 28, 2015                          Page 5 of 17
    additional $300 per month, which was to be applied to principal. Accordingly,
    Huber asked the trial court for a judgment “declaring and adjudicating the
    respective rights and duties of [Huber] and [Hamilton] under the contract as
    modified and further declaring that [Hamilton] does not have the right to
    declare [Huber] in default so long as payments of $1,432.44 [($1132.44 plus
    $300)] per month are made timely.” 
    Id. at 9.
    At Hamilton’s request, the trial
    court ordered that beginning October 1, 2013, the tenants at 111 and 113-115
    West Market Street “shall direct their monthly rent payments to the Clerk of the
    Montgomery Circuit Court who shall hold those rent payments in escrow until
    further order of the Court.” 
    Id. at 13.
    [10]   Hamilton filed a counterclaim against Huber to foreclose the land contract. 
    Id. at 20.
    Specifically, Hamilton alleged that he agreed to a one-year extension of
    the contract—from November 30, 2010, to November 30, 2011—and because
    Huber failed to make the balloon payment on November 30, 2011, he was “in
    default.” 
    Id. at 23.
    Hamilton asked for a money judgment for the balance as
    well as a decree “foreclosing Huber’s interest in [the] real estate by reason of the
    parties’ land contract and is entitled to an order requiring the Sheriff of
    Montgomery County to sell said real estate at public sale in the same manner as
    prescribed for foreclosed mortgage loans.” 
    Id. at 24.
    Hamilton also requested
    attorney’s fees.
    [11]   A bench trial was held. In February 2014 the trial court entered extensive
    findings and conclusions that (1) the Statute of Frauds applied and therefore the
    oral modification to the written contract had no effect; (2) Huber was in default
    Court of Appeals of Indiana | Opinion 54A01-1404-PL-154 | May 28, 2015        Page 6 of 17
    of the written contract because he failed to make the balloon payment when
    due; (3) the additional payments of $300 per month reduced principal and were
    not a penalty; (4) Hamilton was entitled to a judgment of $83,477.20 plus $4075
    in attorney fees; and (5) the written contract should be foreclosed and the
    property sold at a Sheriff’s sale. The conclusions provide, in relevant part:
    11. Huber argues for declaratory judgment in that there was an
    enforceable modification of the contract in December 2010 and that
    the contract extends until the balance of the purchase price is paid off
    at the rate of $1,432.44 per month at 6 ½ % interest. Hamilton argues
    that the contract is in default and that he has the right to acceleration
    and foreclosure of the contract with the 34 extra $300 monthly
    payments forfeited as a penalty.
    12. The Court finds that the evidence is conflicting as to the intention of each
    party. While there was an agreement to extend the contract beyond the
    December 2010 balloon[-]payment deadline Hamilton testified the
    parties agreed to a one[-]year extension while Huber testified there was
    no extension time limit. The evidence is not persuasive one way or the other.
    Therefore the issue for the court is did Hamilton and Huber enter into an
    enforceable modification of the written contract?
    13. The Indiana Statute of Frauds applies. [Text of statute, Indiana
    Code section 32-21-1-1, omitted]. A modification of a land contract is
    subject to the requirements of the Statute of Frauds. The evidence is not
    persuasive enough to support that any oral agreement of the parties should be
    removed from the requirements of the Statute of Frauds.
    14. [The court finds that Huber failed to prove that Hamilton was
    “guilty of conduct that would constitute laches . . . .”][4]
    4
    The doctrine of laches is well established and long recognized: “Independently of any statute of limitation,
    courts of equity uniformly decline to assist a person who has slept upon his rights and shows no excuse for
    his laches in asserting them.” SMDfund, Inc. v. Fort Wayne-Allen Cnty. Airport Auth., 
    831 N.E.2d 725
    , 729 (Ind.
    2005). Laches requires: (1) inexcusable delay in asserting a known right; (2) an implied waiver arising from
    knowing acquiescence in existing conditions; and (3) a change in circumstances causing prejudice to the
    adverse party. 
    Id. Huber does
    not make a cogent argument concerning laches on appeal.
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    15. Based on the foregoing the Court finds that Huber is in default on the
    written contract between the parties because he failed to pay off the
    accelerated balance of all payments due. The Court finds that the
    additional $300 per month payments made by Huber beginning December
    2010 reduced principal and are not penalty payments. Therefore the Court
    finds that as of October 1, 2013 the amount Huber owes to Hamilton
    under the contract is $83,477.20 with interest at the rate of 6 ½ % until
    the date of this judgment. In addition pursuant to the written contract
    Hamilton is entitled to recover reasonable attorney fees in the amount
    of $4,075.00.
    16. The Court finds that the written contract should be foreclosed and
    the Sheriff of Montgomery County, Indiana shall sell the property at
    Sheriff’s sale and the proceeds thereof shall be applied to the judgment
    in the same manner under the laws governing foreclosure sales of
    mortgaged property. Hamilton may also bid for the property with the
    judgment due to him. . . .
    
    Id. at 30-32
    (emphases added, citations omitted).
    [12]   Huber filed a motion to correct errors, which the trial court denied. The court’s
    order provides, in pertinent part:
    1. [Huber’s] first argument is that I.C. 26-2-9-4 applies to the facts of
    this case instead of I.C. 32-21-1-1 [Statute of Frauds]. [Huber] is
    mistaken. I.C. 26-2-9-4 applies to credit agreements. . . . A land
    contract is not a credit agreement and Hamilton was not Huber’s
    creditor as [Huber] asserts in the Motion. . . . I.C. 26-2-9-4 has no
    application to the facts of this case.
    2. The remainder of [Huber’s] arguments invites the Court to reweigh
    the facts of the case and to reconsider the credibility of testimony. The
    Court finds none of [Huber’s] assertions leads the Court to a different
    result.
    3. The Court found that Huber breached his contract with Hamilton
    because Huber failed to make the required balloon payment to
    Hamilton. This breach of the contract entitled Hamilton to be
    awarded attorney fees pursuant to the specific terms of the contract.
    Huber’s arguments as to the award of attorney fees ignore that the
    Court found Huber defaulted on the contract.
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    4. Huber’s argument regarding remedy is that Huber is entitled to the
    balance of any Sheriff’s sale proceeds after payment of costs, taxes and
    Hamilton’s judgment. The Court found that the land contract must be
    foreclosed and that the Sheriff must proceed in the same manner as he
    would in a mortgage[-]foreclosure sale. The Court recognized that
    Huber has equity in the contract and that is why the Court ordered the
    contract foreclosed instead of ordering a forfeiture of Huber’s
    payments made under the contract. Huber will be entitled to any
    balance of sheriff[-]sale proceeds left after payment of real[-]estate
    taxes due, costs of sale, and payment of any amount due to Hamilton
    under the judgment. The normal procedure is for the sheriff to pay the
    balance left to the clerk of the court and Huber may claim these
    proceeds. To the extent the Court’s judgment is not clear on this point
    it is hereby clarified.[5]
    
    Id. at 46-47.
    [13]   Huber appeals, and Hamilton cross-appeals.
    Discussion and Decision
    [14]   Huber raises numerous issues on appeal, which we restate as one: is the parties’
    oral agreement to extend the due date for the balloon payment as set forth in
    the written land contract enforceable pursuant to the Statute of Frauds?6
    [15]   At Huber’s request, the trial court entered finding and conclusions pursuant to
    Indiana Trial Rule 52. Where, as here, the court enters findings and
    5
    The Indiana Supreme Court has determined that a land-sales contract is akin to a mortgage and, therefore,
    the remedy of foreclosure—as opposed to forfeiture—is more consonant with notions of fairness and justice.
    Skendzel v. Marshall, 
    261 Ind. 226
    , 
    301 N.E.2d 641
    , 650 (1973). Because Huber paid more than a minimal
    amount of the contract price, the trial court properly ordered foreclosure in this case.
    6
    To the extent that Huber’s numerous other arguments are not included in this issue, we find them waived
    for failure to develop them. See Ind. Appellate Rule 46(A)(8)(a).
    Court of Appeals of Indiana | Opinion 54A01-1404-PL-154 | May 28, 2015                          Page 9 of 17
    conclusions upon a party’s written request, we apply a two-step review. In re
    Riddle, 
    946 N.E.2d 61
    , 66 (Ind. Ct. App. 2011). First, we consider whether the
    evidence supports the findings, and second, whether the findings support the
    judgment. 
    Id. We neither
    reweigh the evidence nor assess witness credibility,
    and we consider only the evidence most favorable to the judgment. 
    Id. We will
    set aside the trial court’s findings and conclusions only if they are clearly
    erroneous, that is, if the record contains no facts or inferences supporting them.
    
    Id. We review
    conclusions of law de novo. 
    Id. [16] Huber
    contends that the Statute of Frauds, Indiana Code section 32-21-1-1,
    does not apply to this case.7 This case involves a land contract. See Ex. 1.
    7
    Rather, Huber contends that the Indiana Lender Liability Act, Indiana Code chapter 26-2-9, applies to this
    case because our Supreme Court held in Skendzel that land contracts are akin to mortgages. 
    See 301 N.E.2d at 646
    (“Realistically, vendor-vendee should be viewed as mortgagee-mortgagor.”). The Indiana Lender
    Liability Act applies to “credit agreements,” “creditors,” and “debtors.” A “credit agreement” is an
    agreement to:
    (1) lend or forbear repayment of money, goods, or things in action;
    (2) otherwise extend credit; or
    (3) make any other financial accommodation.
    Ind. Code § 26-2-9-1(a). A “creditor” means:
    (1) a bank, a savings bank, a trust company, a savings association, a credit union, an
    industrial loan and investment company, or any other financial institution regulated by
    any agency of the United States or any state, including a consumer finance institution
    licensed to make supervised or regulated loans under IC 24-4.5;
    (2) a person authorized to sell and service loans for the Federal National Mortgage
    Association or the Federal Home Loan Mortgage Corporation, issue securities backed by
    the Government National Mortgage Association, make loans insured by the United
    States Department of Housing and Urban Development, make loans guaranteed by the
    United States Department of Veterans Affairs, or act as a correspondent of loans insured
    by the United States Department of Housing and Urban Development or guaranteed by
    the United States Department of Veterans Affairs; or
    Court of Appeals of Indiana | Opinion 54A01-1404-PL-154 | May 28, 2015                            Page 10 of 17
    Under a typical land contract, the seller retains legal title until the total contract
    price is paid by the buyer.8 Skendzel v. Marshall, 
    261 Ind. 226
    , 
    301 N.E.2d 641
    ,
    646 (1973). Payments are generally made in periodic installments. 
    Id. Legal title
    does not vest in the buyer until the contract terms are satisfied, but
    equitable title vests in the buyer when the contract is executed. 
    Id. The Statute
    of Frauds provides, in relevant part:
    (b) A person may not bring any of the following actions unless the
    promise, contract, or agreement on which the action is based, or a
    memorandum or note describing the promise, contract, or agreement
    on which the action is based, is in writing and signed by the party
    against whom the action is brought or by the party’s authorized agent:
    *****
    (4) An action involving any contract for the sale of land.
    Ind. Code § 32-21-1-1. The law is settled that “any contract which seeks to
    convey an interest in land is required to be in writing.” Brown v. Branch, 758
    (3) an insurance company or its affiliates that extend credit under a credit agreement with
    a debtor.
    Ind. Code § 26-2-9-2. Finally, a “debtor” means a person who:
    (1) obtains credit under a credit agreement with a creditor;
    (2) seeks a credit agreement with a creditor; or
    (3) owes money to a creditor.
    Ind. Code § 26-2-9-3. Because “creditor” has a specific definition that does not apply to Hamilton,
    the Indiana Lender Liability Act does not apply to this case. Accordingly, Sees v. Bank One,
    Indiana, N.A., upon which Huber relies, does not apply either. See 
    839 N.E.2d 154
    (Ind. 2005)
    (noting that the Bank, a creditor, loaned Sees money).
    8
    Although located in a different part of the Indiana Code, a “land contract” is defined as “a contract for the
    sale of real estate in which the seller of the real estate retains legal title to the real estate until the total contract
    price is paid by the buyer.” Ind. Code § 24-4.4-1-301(36).
    Court of Appeals of Indiana | Opinion 54A01-1404-PL-154 | May 28, 2015                                     Page 11 of 
    17 N.E.2d 48
    , 51 (Ind. 2001) (emphasis omitted). That is, Indiana courts have
    long applied the principle that an agreement to convey land is subject to the
    Statute of Frauds’ writing requirement. Id.; see also Johnson v. Sprague, 
    614 N.E.2d 585
    , 588 (Ind. Ct. App. 1993) (holding that “an enforceable contract for
    the sale of land must be evidenced by some writing: (1) which has been signed
    by the party against whom the contract is to be enforced or his authorized
    agent; (2) which describes with reasonable certainty each party and the land;
    and, (3) which states with reasonable certainty the terms and conditions of the
    promises and by whom and to whom the promises were made.”). Furthermore,
    where a contract is required by law to be in writing, it can only be modified by a
    written instrument. Maglaris v. Claude Neon Fed. Co., 
    101 Ind. App. 156
    , 
    198 N.E. 462
    , 463 (1935); 6 Ind. Law Encyclopedia Contracts § 103 (2008).
    [17]   Requiring a writing for transactions concerning the conveyance of real estate is
    consistent with the underlying purposes of the Statute of Frauds, namely: (1) to
    preclude fraudulent claims that would likely arise when the word of one person
    is pitted against the word of another and (2) to remove the temptation of perjury
    by preventing the rights of litigants from resting wholly on the precarious
    foundation of memory. 
    Brown, 758 N.E.2d at 51
    ; see also Coca-Cola Co. v.
    Babyback’s Int’l, Inc., 
    841 N.E.2d 557
    , 567 (Ind. 2006). These purposes are
    underscored in this case because although the parties had an agreement to
    extend the balloon payment, the trial court found that it could not determine
    the details of that agreement. See Appellant’s App. p. 30-31 (Conclusion No.
    12).
    Court of Appeals of Indiana | Opinion 54A01-1404-PL-154 | May 28, 2015   Page 12 of 17
    [18]   We find that the Statute of Frauds is unambiguous and provides a bright-line
    rule that applies to the parties’ November 2007 written land contract and
    December 2010 oral agreement to extend the due date for the balloon payment
    as set forth in the written land contract. See 
    Brown, 758 N.E.2d at 51
    . That is,
    because the land contract was required to be in writing, any modification to it
    also had to be in writing. Accordingly, the parties’ oral agreement is not
    enforceable because it was not in writing.
    [19]   Nevertheless, even when oral agreements fall within the Statute of Frauds, they
    may still be enforced under the equitable doctrine of promissory estoppel. 
    Id. Both Huber
    and Hamilton rely on this doctrine.
    [20]   The estoppel doctrine is based on the rationale that a person whose conduct has
    induced another to act in a certain manner should not be permitted to adopt a
    position inconsistent with such conduct so as to cause injury to the other.
    Spring Hill Developers, Inc. v. Arthur, 
    879 N.E.2d 1095
    , 1100 (Ind. Ct. App. 2008)
    (citing 31 C.J.S. Estoppel and Waiver § 2 (1996)). Coupled with the Statute of
    Frauds, the two represent alternative and sometimes competing means to
    achieve the same ends of avoiding injustice:
    The statute of frauds was designed as the weapon of the written law to
    prevent fraud, while the doctrine of estoppel is that of the unwritten
    law to prevent like evil. Each is effective in its appropriate field; both
    are essential to prevent and redress wrongs, and neither should be
    allowed to dominate the other.
    Court of Appeals of Indiana | Opinion 54A01-1404-PL-154 | May 28, 2015          Page 13 of 17
    
    Id. (quoting Columbus
    Trade Exch., Inc. v. AMCA Int’l Corp., 
    763 F. Supp. 946
    ,
    952 (S.D. Ohio 1991)). Consistent with these observations, a party seeking to
    preclude application of the Statute of Frauds based on promissory estoppel
    must establish the following elements: (1) a promise by the promisor; (2) made
    with the expectation that the promisee will rely thereon; (3) which induces
    reasonable reliance by the promisee; (4) of a definite and substantial nature; and
    (5) injustice can be avoided only by enforcement of the promise. 
    Id. (citing First
    Nat’l Bank of Logansport v. Logan Mfg. Co., 
    577 N.E.2d 949
    , 954 (Ind. 1991)). In
    order to establish an estoppel to remove the case from the operation of the
    Statute of Frauds, the party must show that the other party’s refusal to carry out
    the terms of the agreement has resulted not merely in a denial of the rights that
    the agreement was intended to confer, but the infliction of an unjust and
    unconscionable injury and loss. 
    Brown, 758 N.E.2d at 52
    . Thus, while it is true
    that the doctrine of promissory estoppel may remove an oral agreement from
    the operation of the Statute of Frauds, it is also true that the party asserting the
    doctrine carries a heavy burden of establishing its applicability. 
    Id. [21] As
    for the parties’ promissory-estoppel arguments, Huber claims that he made
    the thirty-four additional payments of $300 in reliance on Hamilton’s promise
    to extend the balloon payment until July 2019 and not seek foreclosure.
    Hamilton cross-appeals arguing that he agreed to postpone the balloon payment
    in reliance on Huber’s promise that the additional payments of approximately
    $10,000 were a penalty and therefore would not be applied to principal. We
    find, however, that each party has failed to meet its heavy burden of proving
    Court of Appeals of Indiana | Opinion 54A01-1404-PL-154 | May 28, 2015     Page 14 of 17
    that promissory estoppel applies. This is because the trial court could not
    determine whom to believe. The trial court concluded:
    11. Huber argues for declaratory judgment in that there was an
    enforceable modification of the contract in December 2010 and that
    the contract extends until the balance of the purchase price is paid off
    at the rate of $1,432.44 per month at 6 ½ % interest. Hamilton argues
    that the contract is in default and that he has the right to acceleration
    and foreclosure of the contract with the 34 extra $300 monthly
    payments forfeited as a penalty.
    12. The Court finds that the evidence is conflicting as to the intention of each
    party. While there was an agreement to extend the contract beyond the
    December 2010 balloon[-]payment deadline Hamilton testified the
    parties agreed to a one[-]year extension while Huber testified there was
    no extension time limit. The evidence is not persuasive one way or the other.
    ...
    Appellant’s App. p. 30-31 (emphases added). Because the trial court could not
    determine the details of the parties’ agreement, neither party can prove that
    promissory estoppel applies because there is no “promise” to enforce.9
    Furthermore, although Huber asks us to believe his version of the parties’
    9
    Huber raised as an affirmative defense that Hamilton “accepted an additional $300.00 monthly payment
    toward the principal and did so for a period of three (3) years without question or objection, while
    encouraging Terry Huber to make capital improvements to the property.” Appellant’s App. p. 27. Huber
    also argues on appeal that Hamilton “acquiesced and made no declaration of breach for the period of a
    second and then a third year and accepted the increased payment each month.” Appellant’s Br. p. 11. The
    trial court found:
    In addition the written contract states in the default and acceleration clause that . . . “No
    delay on the part of [Hamilton] in exercising this option shall operate as a waiver or
    preclude the exercise of such option at any time during the continuance of such default or
    upon the occasion of any subsequent default.” This anti-waiver provision is enforceable and
    certainly applies to the facts of this case.
    Appellant’s App. p. 32 (emphasis added). To the extent that Huber argues that Hamilton waived the
    anti-waiver provision in the parties’ contract by accepting the additional $300 per month for a couple of
    years before declaring a breach, Huber cannot meet this burden because, as the trial court found, he
    failed to prove how long the parties agreed to extend the due date for the balloon payment.
    Court of Appeals of Indiana | Opinion 54A01-1404-PL-154 | May 28, 2015                             Page 15 of 17
    agreement as opposed to Hamilton’s, we do not determine the credibility of the
    witnesses on appeal. See, e.g., Appellant’s Br. p. 10 (“Hamilton’s own
    testimony would not support [the trial court’s judgment] even if he were to be
    believed.”), 13 (“The Court may choose to believe Hamilton and find it a one-
    year contract, or may choose to believe Huber and find it extended to pay-off”
    & “Huber’s credibility is bolstered and Hamilton’s impugned . . . .”), 19
    (“Credibility of Hamilton is an issue.”).
    [22]   Because neither party can meet its burden of taking the oral agreement outside
    the Statute of Frauds, the Statute of Frauds applies; therefore, the oral
    agreement is unenforceable, and the parties’ rights and obligations are governed
    by the written land contract. As such, the trial court properly concluded that
    Huber breached the written land contract when he failed to make the balloon
    payment by November 30, 2010. In addition, because the oral agreement is
    unenforceable, the trial court properly determined that Huber’s additional
    payments of $300 per month beginning in December 2010 reduced principal
    and were not a penalty.
    [23]   Finally, Huber argues that the trial court erred in ordering him to pay $4075 in
    attorney’s fees. The written land contract provides for the payment of
    attorney’s fees in the event of a breach. See Ex. 1 (“[Hamilton] shall be entitled
    to recover judgment against [Huber] for such sum without relief from valuation,
    appraisement laws together with Court costs, attorney’s fees and any other
    damages which may have been caused by [Huber’s] breach of this contract.”
    Court of Appeals of Indiana | Opinion 54A01-1404-PL-154 | May 28, 2015      Page 16 of 17
    (emphasis added)). We therefore affirm the trial court’s award of attorney’s
    fees to Hamilton.
    Affirmed.
    Baker, J., and Riley, J., concur.
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