McGinnity v. Kirk

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The Kirks purchased a house in Osage County from Buel and Peggy Neece in 1987. The Kirks signed a Contract for Deed that required monthly payments of $400 to the Neeces. In 1998, the Neeces sold their property to Thomas and Claudia McGinnity and assigned the Contract for Deed to the McGinnitys. The McGinnitys brought claims against the Kirks based upon breach of contract and a foreclosure of the contract for deed. They asserted that the contract for deed was breached by the Kirks due to (1) failing to keep the property insured for full replacement value, (2) conveying an interest in the property to Mary Komonce without express written consent, (3) committing and permitting waste of the real property, (4) failing to keep the buildings and improvements in good repair, and (5) failing to begin immediate restoration. The McGinnitys sought foreclosure as their remedy, with attorney's fees and costs, but did not seek damages. The Kirks asserted estoppel, waiver, duress, accord and satisfaction, laches and claims based upon breach of contract and abuse of process. The trial court denied the McGinnitys' request for judgment at the conclusion of their case in chief. Ultimately, the trial court determined that the Kirks breached the terms of the contract for deed. The trial court granted foreclosure on the real property in rem, quieted title in and to the McGinnitys against any claim of the Kirks and Komonce. The trial court reserved the issue of attorney's fees and costs to be presented to the trial court by a separate motion. The trial court found in favor of the McGinnitys on all of the Kirks' defenses and counterclaims. The Kirks appealed and the trial court's judgment was affirmed by the Court of Civil Appeals. The Kirks petitioned for certiorari review of the Court of Civil Appeals’ judgment. The Supreme Court held that the value of the property exceeded the amount due on the mortgage and no waste was present, but the District Court's finding that the Kirks breached the contract for deed was not against the clear weight of the evidence on the McGinnitys' claims of failure to maintain insurance and the property. The Supreme Court therefore affirmed the trial court's judgment in favor of the McGinnitys and against the Kirks on their counterclaims. View "McGinnity v. Kirk" on Justia Law