## Facts

- In January 2004, Janet Holloway orally agreed to loan $163,800 to her daughter, Suzanne Bucher (and, as sued, Suzanne and her husband William Bucher).
- The parties orally agreed that Suzanne would make $300 monthly payments until she sold her home, and $500 monthly payments after the sale.
- Suzanne made the $300 monthly payments, then sold her home in August 2004 and paid Holloway a lump sum of $63,025.25 from the sale proceeds.
- After the sale, Suzanne made $500 monthly payments until February 2013.
- In February 2013, Suzanne lost her job, and Holloway allowed Suzanne to stop making payments.
- Holloway later demanded that Suzanne resume payments because Holloway believed Suzanne was not making a sufficient effort to find work, but Suzanne did not restart monthly payments.
- Holloway sued for the remaining balance of the loan.
- Suzanne moved for summary judgment, arguing the oral agreement was unenforceable under Ohio’s statute of frauds because, by its terms, it could not be completed within one year of formation.
- Holloway responded that the stated monthly amounts were only minimum payments and that the contract could have been completed within one year, pointing to the lump-sum payment and Holloway’s testimony that she would have accepted an early payoff.
- Holloway also argued that the parties’ partial performance took the agreement outside the statute of frauds.

## Issues

1. Whether the oral loan agreement was unenforceable under Ohio’s statute of frauds because the repayment terms could not be completed within one year of the agreement.
2. Whether evidence that Holloway would have accepted an early payoff, and that Suzanne made a large lump-sum payment, showed the contract could be performed within one year.
3. Whether partial performance (payments over time and the lump-sum payment) permitted enforcement of the oral loan agreement in an action seeking money damages.
4. Whether summary judgment for Suzanne Bucher was proper.

## Decision

- The court affirmed the trial court’s grant of summary judgment to Bucher.
- The court held the oral agreement fell within the one-year provision of the statute of frauds because, as described, it required ongoing monthly payments that could not be completed within one year.
- The court rejected Holloway’s claim that the monthly payments were merely minimum payments, reasoning that Holloway’s later willingness to accept early repayment and the parties’ later conduct did not establish an agreed term at formation allowing completion within one year.
- The court rejected Holloway’s partial-performance argument and declined to enforce the oral loan agreement for money damages despite years of payments.
- Because the statute-of-frauds bar was dispositive, the court concluded there was no genuine issue of material fact and Bucher was entitled to judgment as a matter of law.

## Legal Principles

- Ohio’s statute of frauds requires a writing for an agreement that, by its terms, is not to be performed within one year of its making.
- The one-year inquiry focuses on the agreement as made; a party’s later willingness to accept accelerated performance does not convert the original bargain into one performable within one year.
- When an oral repayment plan is defined by scheduled monthly payments that necessarily extend beyond one year, the contract is within the statute of frauds absent a written memorandum.
- Partial performance does not, in this setting, permit enforcement of an otherwise barred oral agreement in a suit seeking damages on a loan contract.
- Summary judgment is proper when, even viewing the evidence most favorably to the nonmovant, the statute of frauds defeats the claim as a matter of law.

## Conclusion

The appellate court affirmed summary judgment for Bucher because the alleged oral loan agreement required a monthly-payment schedule that could not be completed within one year, bringing it within Ohio’s statute of frauds; the lender’s claim that payments were “minimums” and the parties’ partial performance did not make the unwritten loan enforceable for money damages.


Holloway v. Bucher, 2018 Ohio 3301 (2018)