CONTRACTS – No enforceable contract, statute of frauds, promissory estoppel, etc. : Gray v. First State Financial, Inc. (COA 9/18/2009)

Gray v. First State Financial, Inc.
2008-CA-001034 9/18/09 2009 WL 2971673 DR pending

Opinion by Judge VanMeter; Judges Lambert and Moore concurred.

The Court affirmed a summary judgment in favor of appellees on appellant’s claims for promissory estoppel, fraud, conversion, and trespass related to the conversion of a line of credit into an installment note.

The Court held that the trial court properly found that there was no genuine issue of material fact as to whether the parties had an enforceable contract. Any alleged agreement to make a loan was too indefinite to be enforceable as the internal request to the loan committee not only lacked a closing date, the terms had not been conveyed to appellant and the loan was never approved by the necessary committee. Further, the alleged agreement was not enforceable pursuant to the statute of frauds, KRS 371.010. The Court also held that the trial court did not err in finding that no genuine issue of material fact existed as to whether appellant was entitled to relief on the ground of promissory estoppel Appellant’s allegation that she would have obtained financing with a different bank was not definite or of such substance to require relief. Further, because appellant was able to obtain and personally secure other credit lines, she failed to provide evidence of economic loss or other measurable injustice. The Court finally held that appellant’s right to contribution from her ex-husband was wholly separate from her claim against appellees so that her claim of detriment in that regard did not support relief for promissory estoppel.

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