Justia Oklahoma Supreme Court Opinion Summaries

Plaintiff Alan Benefiel and Christa Benefiel were divorced by a consent decree entered in 2005. Consistent with the terms of the parties' divorce decree, Plaintiff executed a quit claim deed, transferring title in the former marital residence to Christa. In exchange for relinquishing his ownership interest in the property, the decree required Christa to pay Plaintiff $25,000.00 as alimony in lieu of property division. Payments were structured incrementally over a period of four years; $10,000 was due in 2005, and $5,000 was payable on January 31 for years 2006, 2007, and 2008. As security for the property division judgment, Plaintiff was awarded a lien encumbering the residence. The lien was to remain in effect until all payments were completed. Further, the decree contained a clause which vested Plaintiff with the right to immediate title and possession of the property should Christa fail to timely remit any of the annual installments Prior to paying the final installment, Christa sold the subject real property to a third-party, Jewel Boulton. Boulton paid $17,000.00 as a down payment and financed the remainder of the purchase price. Though the divorce decree had not been filed with the local county clerk, it was made a part of the abstract of title. Despite its inclusion in the abstract, a title opinion issued prior to closing failed to identify the divorce judgment as a potential cloud or defect. Christa failed to make the final property division installment due on January 31, 2008. Plaintiff filed suit against both Boulton and Christa, asserting several claims, including demands to quiet title and to allow foreclosure of the lien. In her Answer, Boulton maintained that Plaintiff had no right, title, or interest in the house and that his lien from the divorce decree was ineffective and void. Both Boulton and Plaintiff sought summary judgment. The trial court entered judgment in favor of Plaintiff, finding: (1) the divorce decree created a valid "mortgage lien" against the property; (2) Christa defaulted on the property division obligation; and (3) in accordance with the divorce decree, Christa's default resulted in the automatic reversion of title to Plaintiff. In a prior appeal, the Court of Civil Appeals invalidated the reversionary clause, but found the property was subject to a valid lien. On remand, Boulton invoked her statutory right of redemption, under 42 O.S. 20, by paying the underlying obligation plus interest; however, Boulton's discharge of the lien was not accomplished for more than three years after litigation was commenced. Thus, Plaintiff was the prevailing party on the lien foreclosure claim. After its review, the Supreme Court held that Boulton's redemption of the subject property occurred when she tendered both the underlying $5,000.00 obligation and the accumulated interest owed thereon. The Court of Appeals' opinion was thus vacated, and the case remanded for further proceedings. View "Benefiel v. Boulton" on Justia Law

The Tenth Circuit Court of Appeals certified a question of Oklahoma law to the Oklahoma Supreme Court. In April 2008, plaintiffs Shannon and Eric Walker requested several samples of hardwood flooring from BuildDirect.com Technologies, Inc., a Canadian corporation, through BuildDirect's website. The next month they arranged, over the telephone, to purchase 113 boxes of flooring from BuildDirect. BuildDirect emailed a two-page written Contract entitled "Quotation" to Ms. Walker, who signed and dated the Contract and returned it to BuildDirect via fax. The Contract described the type, amount, and price of the flooring purchased by the Walkers. And, it included 14 bullet points setting forth additional terms. The sixth bullet point stated: "All orders are subject to BuildDirect's 'Terms of Sale.'" The Walkers alleged that after they installed the flooring, they discovered that their home was infested with nonindigenous wood-boring insects. According to the Walkers, the insects severely damaged the home, and caused the home to be subject to quarantine and possible destruction by the United States Department of Agriculture. The question the federal appeals court posed to the Oklahoma Supreme Court was whether a written consumer contract for the sale of goods incorporated by reference a separate document entitled "Terms of Sale" available on the seller's website, when the contract stated that it was "subject to" the seller's "Terms of Sale" but did not specifically reference the website. In response, the Oklahoma Court held that Oklahoma law did not recognize a "vague attempt at incorporation by reference" as demonstrated in this case. Under the Oklahoma law of contracts, parties may incorporate by reference separate writings, or portions thereof, together into one agreement where: (1) the underlying contract makes clear reference to the extrinsic document; (2) the identity and location of the extrinsic document may be ascertained beyond doubt; and (3) the parties to the agreement had knowledge of and assented to its incorporation. View "Walker v. BuildDirect.com Technologies, Inc." on Justia Law

Taxpayers Don and Mary Frankenberg made improvements to their home in 2001. The Garvin County Assessor did not increase the fair cash value of the property for the improvements until 2012 when she visually inspected the property and discovered the improvements. The Assessor notified the Taxpayers of a new assessed fair cash value, which was a substantial increase from the previous valuation in 1999. The Taxpayers protested the assessment, arguing that under Art. X, section 8B of the Oklahoma Constitution, the fair cash value of the property could not be increased more than 5% in any year. The district court granted summary judgment in favor of the Taxpayers, and the Assessor appealed. Upon review, the Supreme Court found the exception to the 5% cap for improvements to a property existed only for the year the improvements were made to the property and did not apply in the year when the Assessor first discovers the improvements. Accordingly, the Court affirmed. View "Frankenberg v. Strickland" on Justia Law

In 2013, the City of Ada, Oklahoma passed Ordinance No. 13-02 to annex certain real property, located in Township 3 North, Range 6 East of the Indian Base and Meridian, Pontotoc County, Oklahoma, into its corporate city limits. Petitioners were residents of Pontotoc County, Oklahoma, who owned property within the annexed territory. They sought to set aside the ordinance, and City denied their request. They then filed their Petition for Declaratory Judgment and in the Alternative, for Detachment of Municipal Territory, seeking a determination that the City lacked jurisdiction to pass the ordinance due to lack of compliance with 11 O.S. 2011 sec. 21-103. The trial court denied Petitioners' request for relief but filed its Order Certifying Interlocutory Order for Immediate Appeal. The question this case presented for the Oklahoma Supreme Court's review centered on whether the City fully complied with the Oklahoma annexation statutes when it annexed that territory near its city limits. The Court held that substantial compliance with the notice requirements was not sufficient under the applicable statutes in this case and reversed. View "In re: Detachment of Municipal Territory from the City of Ada" on Justia Law

Appellants Homesales, Inc., JPMorgan Chase Bank, N.A., and Jason L. Howell, appealed the district court's order certifying this case as a class action at the request of Appellee Marshall County. This case centered on the Documentary Stamp Tax Act, and its applicability to a sheriff's deed granted to Homesales in a mortgage foreclosure action prosecuted by JPMorgan. Homesales claimed that the transaction was exempt from documentary tax. The County disagreed and sued to collect the tax it claimed was due. The County also moved to certify the case as a class action in which all Oklahoma counties would join as plaintiffs. The district court granted the County's motion and certified the case pursuant to Title 12 O.S. Supp. 2013 sec. 2023 (B)(3) and the defendants appealed. Because the County was precluded by the Oklahoma Supreme Court's holding in "Murray Cnty. v. Homesales, Inc.," (330 P.3d 519) from suing to collect unpaid taxes allegedly due pursuant to the DSTA, the district court's class certification order was reversed and this case was remanded for further proceedings. View "Marshall County v. Homesales, Inc." on Justia Law

Plaintiff-appellant Erica Wood sued Mercedes-Benz of Oklahoma City for injuries she suffered after she slipped and fell on ice that had accumulated on sidewalks, pavement, and grass surrounding the Defendant's automobile dealership. The icy conditions were caused by Defendant's sprinkler system which activated during freezing temperatures. The trial court granted summary judgment in favor of the Defendant. The Court of Civil Appeals affirmed. The Supreme Court reversed, finding that Mercedes-Benz had a duty to take precautionary measures with regard to the sprinkler system particularly in light of cold temperatures and pooling water caused by the system. Furthermore, there was a question of fact regarding whether Mercedes-Benz breached its duty toward Wood, making summary judgment inappropriate, and requiring the matter be submitted to a jury. View "Wood v. Mercedes-Benz of Oklahoma City" on Justia Law

In this appeal, the issue this case presented to the Supreme Court was whether a transfer of real property between affiliated business entities constituted a "sale" for purposes of the Documentary Stamp Tax Act. Defendants Homesales, Inc., JPMorgan Chase Bank, N.A. and EMC Mortgage, LLC, f/k/a EMC Mortgage Corporation appealed an order granting partial summary judgment in favor of Plaintiffs Murray County, Oklahoma, County Commissioners ex rel. Murray County, Oklahoma and Johnston County, Oklahoma, County Commissioners ex rel. Johnston County, Oklahoma (the Counties). Chase filed four foreclosure cases and was the successful bidder at each sheriff's sale. Therefore, Chase was entitled to a sheriff's deed to each of the properties. However, Chase did not take title. Instead, sheriff's deeds were granted to Chase's affiliated entities. The deeds were recorded with the respective county clerks. The grantees noted on the conveyances that the deeds were exempt from documentary taxes. No documentary taxes were paid. The Counties contended the conveyances involved in this case were not exempt and filed suit to collect the applicable documentary taxes. The district court granted partial summary judgment to the Counties finding that the conveyances were not exempt from the DSTA, and that the Counties could sue to enforce the provisions of the DSTA and collect the documentary taxes that were not paid on these transactions. The Supreme Court, however, concluded that the Counties were not authorized to prosecute violations of the DSTA. The Counties did have standing to challenge the exemptions from the documentary tax claimed for these conveyances. The Court reversed the order granting partial summary judgment and remanded the case for further proceedings. View "Murray County v. Homesales, Inc." on Justia Law

On November 14, 2009, sewage entered into and damaged the home of plaintiffs Justin and Brandy Porter. At the time, Plaintiffs' home was insured by defendant Oklahoma Farm Bureau Mutual Insurance Company under a "Homeowners Special Coverage Policy." Plaintiffs filed a claim for their loss, which defendant denied. Subsequently, plaintiffs filed a petition in the district court for breach of contract and breach of the duty of good faith and fair dealing. Plaintiffs argued that the district court should follow "Andres v. Oklahoma Farm Bureau Mutual Insurance Co.," (227 P.3d 1102, cert. denied, (Nov. 23, 2009)) to find that the policy was ambiguous because it contained conflicting provisions on loss caused by water damage and that the doctrine of reasonable expectations required the ambiguity to be construed in favor of coverage. Plaintiffs also argued that defendant committed bad faith when defendant wrote a policy that both includes and excludes a named peril and then denied plaintiffs coverage under the policy. Plaintiffs amended their petition to bring classwide claims on behalf of others similarly situated. Plaintiffs amended their petition a second time to allege "breach of the implied covenant of good faith and fair dealing and/or fraud," individually and classwide. Plaintiffs' motion for leave to file a second amended petition did not address an individual or class-action fraud claim. Defendant moved to dismiss the class-action claims and the fraud claim for failure to state a claim upon which relief can be granted. Defendant subsequently stated that the motion to dismiss "[did] not address any other claims" and that "a dispositive motion challenging the merits of Plaintiffs' individual breach of contract and bad faith claims [would] likely be filed in the future." The district court, however, dismissed all claims. The issue before the Supreme Court on appeal was whether the district court erred in granting defendant's motion to dismiss. The resolution of this issue turned on two questions: (1) whether plaintiffs' homeowners policy was ambiguous when the policy covers loss to personal property "caused by . . . accidental discharge or overflow of water from within a plumbing . . . system" (the accidental-discharge-coverage provision) and excluded coverage for loss to real and personal property "resulting directly or indirectly from . . . water which backs up through sewers or drains" (the sewer-or-drain-backup exclusion); (2) if the policy was ambiguous, whether the doctrine of reasonable expectations required the ambiguity to be construed in favor of coverage. The Supreme Court found the district court erred in dismissing the petition in its entirety when the allegations taken as true stated a claim for breach of contract. View "Porter v. Oklahoma Farm Bureau Mutual Ins. Co." on Justia Law

Plaintiff-appellant, the State of Oklahoma, ex rel. Department of Transportation ("ODOT"), filed a condemnation proceeding against Lamar Advertising of Oklahoma Inc., and Lamar Central Outdoor, Inc., for the removal of an outdoor advertising sign and the acquisition of Lamar's leasehold interest associated with the sign. ODOT previously acquired the real property on which the sign was located as part of a highway improvement project and, as such, the sign needed to be removed. Lamar erected the sign on the underlying property pursuant to a written lease agreement with the owners of the land. Lamar removed the sign but kept it. ODOT argued that the sign was a trade fixture and that trade fixtures were personal property. As such, ODOT claims Lamar was only entitled to the depreciated reproduction costs of the sign or the costs associated with the sign's relocation. Furthermore, ODOT argued that Lamar's method of valuation improperly allowed for the recovery of lost business income and profits. Lamar argued that regardless of whether the sign is personal or real property, the only criteria was fair market value of the sign and its related interests. Lamar valued its property interests at $429,000 while ODOT valued the property significantly less (roughly $60,000). At the conclusion of trial, the jury returned a verdict awarding Lamar $206,000 in just compensation for its interests. Lamar filed a motion for new trial and a motion to reconsider, both of which the trial court denied. Both parties appealed. The Supreme Court concluded that there was competent evidence to support the verdict of the jury as to the amount of damages awarded Lamar. As such, the Court found no grounds for reversing the judgment of the lower court. View "Oklahoma ex rel. Dept. of Transportaion v. Lamar Advertising of Oklahoma, Inc. " on Justia Law

Glenhurst Homeowners Association ("HOA") filed an action against Xi Family Trust and Xiang Yu Ren ("homeowner"), for breach of real property covenants. The HOA's Petition argued that the covenant for the Glenhurst Addition required all houses built in the neighborhood to have roofs that were a particular weathered wood color. After a hail storm in 2010, the homeowner hired a contractor to replace his roof and told the contractor to put the most energy efficient shingles on the house. The contractor did not put weathered wood colored shingles on the house. The HOA asked the trial court for an injunction, requiring homeowner to remove the nonconforming shingles and install shingles of weathered wood color. After denying a continuance request from homeowner, the trial court granted summary judgment to the homeowners association. Upon review of the record, the Supreme Court found that the trial court's denial of the continuance deprived the homeowner of a reasonable opportunity to properly respond to the homeowners association's motion for summary judgment, and that summary judgment should not have been granted. View "Glenhurst Homeowners Association, Inc. v. Xi Family Trust" on Justia Law