11 Pa. 127 | Pa. | 1849
The opinion of this court was delivered by
It is scarcely an open question that, upon the refusal or inability of a vendor to execute a deed clear of all encumbrances, including the wife’s dower, the vendee has a right of action to recover at least nominal, or, as the case may be, compensatory damages. Nor will it alter the case, that the contingent right of
On the facts presented here, the question, it is plain, is not whether the plaintiff can sustain an action, for of that no reasonable doubt can be entertained; but what is the amount of the plaintiff’s damages, and by what rule they are to be estimated and assessed ? Is he entitled to compensatory damages, or, in addition to this, is he to be paid for the loss of his bargain ? The court very properly instructed the jury, that their calculations must be confined to the damages necessarily and directly arising out of the breach of the covenant. That Brough was injured by the refusal of Bitner to comply with his agreement, is too plain to admit of controversy. Brough, after he made his contract, returned home, sold his own farm to raise the funds to pay Bitner, made arrangements to remove from Adams county, his place of residence, to Franklin county, and certainly did remove, with his family, his stock, and
On the head of damages arising from the loss of the bargain, the distinction is, whether the vendor acts with good - or bad faith. When the vendor of an estate is, without fraud on his part, incompetent to make out a title, the purchaser is not entitled to recover damages for the loss of his bargain, beyond the money paid, with interest and expenses; although it appears that a considerable profit might have been derived by him from the completion of the purchase. This is a reasonable principle laid down in all the text books, and is abundantly supported by authority: Chitty on O. 311; Sug. on Vendors, 2 Bl. R. 1078; and the cases cited. But the rule only holds good when the vendor acts with good faith; where he is guilty of collusion, tort, artifice, and fraud, to escape 'from the effects of a bad bargain, it is otherwise. In that case the vendee is entitled not only to compensatory damages, but to ‘damages arising from the loss of the bargain, or the money he might have derived from the completion of the contract. Thus, if the refusal of the wife to execute the deed is a mere pretext, the result of collusion at the instigation of the husband to rid himself of an improvident contract, the price having risen in the intermediate time between making the agreement and its completion, he must respond for the difference in value. Justice and good policy require this to be the rule, for otherwise the advantage would be entirely on the side of a vendor, who would be often under great temptation to violate his contract, when the difference in price was so great' as to excite his cupidity. A party must not be allowed to gain by a violation of his engagement. The difference is a plain and palpable one, and consists in the bona fides or mala fides of the transaction; from whatever cause the refusal to comply may
Judgment affirmed.