In two opinions issued on the same day, Ralph Roberts Realty, LLC v Schierlinger and Ralph Roberts Realty, LLC v Tyson, an unpublished Michigan Court of Appeals opinion, Plaintiff prepared, but the parties never signed, an agreement whereby Plaintiff would purchase properties in Defendant’s name. Plaintiff would receive $5,000 for that service, as well as the exclusive right to sell the property for a 7% commission and, if the property did not sell within 5 years, Plaintiff would be entitled to 50% of the equity in the property. Plaintiff purchased properties for each Defendant. When the properties had not sold within 5 years, Plaintiff sued Defendants for the 50% equity in the property. Defendant claimed the unsigned contract was barred by the statute of frauds, a statute barring certain types of contracts unless they are in writing and signed by the party being sued. The trial court held that the agreement was barred by the statute of frauds that barred contracts that could not be performed within 1 year unless in writing and signed by the party against whom enforcement was sought. Plaintiff appealed.
On appeal, the Michigan Court of Appeals affirmed, although it held that a different provision of the statute of frauds, barring contracts for an “interest in land” unless in writing and signed by the party against whom enforcement was sought, was applicable. The court held that an agreement to pay 50% of the equity in the property was a contract for an interest in the land. Since the contract was unsigned in each case, it was unenforceable.