Edgar v. Mills

Thomas and Elizabeth Edgar entered into a lease agreement with Boyd and Merlyn Mills concerning land in Faulk County. Under the belief that he had an option to purchase the real estate at the conclusion of the lease term, Thomas Edgar later contacted an attorney to prepare a warranty deed so that the Millses could convey the real estate to the Edgars. After the Edgars’ attempts to execute the deed with the Millses failed, the Edgars sued the Millses for specific performance. The Millses counterclaimed, alleging that the Edgars breached the lease agreement. The trial court found the lease agreement ambiguous and considered parol evidence. The court ultimately concluded that the parties intended the lease agreement to be a lease with an option to purchase and ordered specific performance compelling the Millses to execute a warranty deed in favor of the Edgars. The Supreme Court reversed in part and remanded, holding (1) the trial court erred when it interpreted the parties’ agreement to be ambiguous and when it directed the Millses to execute a warranty deed in favor of the Edgars; and (2) under the lease, the Millses were entitled to reimbursement of their reasonable attorney’s fees incurred by reason of the Edgars’ breach of the lease agreement. View "Edgar v. Mills" on Justia Law