Real Estate Parcel Purchase-Cost of Improvements

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WI Court of Appeals – District III

Case Name: Roger L. Thompson v. Robert Popple

Case No.: 2021AP001768

Officials: GILL, J.

Focus: Real Estate Parcel Purchase-Cost of Improvements

In 2020, Robert and Mary Popple sought to exercise a first option to buy on a portion of a parcel from Roger and Sheila Thompson pursuant to the terms of a 1993 warranty deed setting the purchase price at “the cost of the improvements” to the lot plus acquisition costs. Robert and Mary appeal a circuit court order setting the amount they must pay to exercise the option at $33,000. They contend that the court erred, as a matter of law, by not setting the amount due to exercise the option at the 1993 cost of improvements to the lot, rather than at the current value of those costs. Specifically, they claim the court erred because the option was unambiguous and, as a matter of contract interpretation, the court should not have applied equitable principles in setting the value of the option. The appeals court interprets the circuit court’s reference to “damages” to mean that it was equitably requiring a greater amount of money to be paid for the option than it would have if the transfer of the garage lot back to Robert and Mary would not leave the Thompsons with a “more non[]conforming” lot. In all, the court used a demonstrated rational process and made a conclusion that a reasonable judge could reach.

Affirmed.

Decided 07/06/23

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