Statute of Frauds Inapplicable to Agreement to Remove Dirt
The Arkansas Court of Appeals affirmed judgment entered on an oral contract in Hodges v. John F. Jenkins Contracting, Inc., No. 06-591 (3/7/07).
The parties negotiated for Jenkins to remove 80,000 cubic yards of dirt from Hodges' land and Hodges to pay $2 per cubic yard. A written contract was never created. Jenkins claimed the parties had an oral contract; Hodges claimed the parties had never reached an agreement. The jury agreed with Jenkins, and the court entered judgment on the verdict.
Hodges appealed claiming the contract fell under the statute of frauds as either a contract for the sale of land or the sale of goods in excess of $500. The court disagreed, holding that the contract was one for services, and the statute of frauds did not apply. The court noted that, if the contract had been Jenkins paying Hodges to acquire the dirt, it would have been a contract for goods in excess of $500.
