Slone v. Calhoun

Rosa Lea Slone (plaintiff) entered into an installment land contract in 2005 with Michael Calhoun (defendant) for the purchase of a lot and a mobile home. The contract required Slone to pay $313 per month, plus taxes and insurance. The contract also contained a forfeiture provision stating that Slone would forfeit her interest in the property if she defaulted on payments. Slone alleged that in January 2009, Calhoun executed a land contract with Jerry Sumner (defendant) for Slone’s lot and mobile home, mistakenly believing it was not Slone’s lot. In May 2009, Slone told Calhoun she could not keep making monthly payments and moved from the property. At some point between May and November 2009, Calhoun and Sumner discovered their land contract erroneously described its subject matter as Slone’s lot and mobile home, and they executed a corrected contract for the property adjacent to Slone’s. In November 2009, Slone filed a complaint against Calhoun and Sumner, alleging Calhoun and Sumner forced her to move out and seeking damages for breach of contract. At trial, the Knott Circuit Court found Slone had voluntarily terminated her land contract by leaving the property in May 2009. The Knott Circuit Court further found that, under the forfeiture provision of the land contract, Slone had forfeited her interest in the property, including any payments Slone had made during the term of the land contract. Slone appealed to the Court of Appeals of Kentucky.