145 P. 750 | Wyo. | 1915
Lead Opinion
The plaintiff in error, who was defendant below, and will, for convenience, be hereafter referred to as defendant, brings error to reverse a judgment for damages in the sum of $6,043.04 and costs obtained against him by defendants in error, who were plaintiffs, and who will be here referred to as plaintiffs, for an alleged breach of a written contract to sell and convey to them certain described lands of which defendant was the owner and occupant. The action was for specific performance of the contract and damages, and was tried to the court which made and separately stated its findings of fact and conclusions of law. A motion for a new trial was made upon several grounds which was overruled and such ruling is here assigned as error. The agree
“This agreement, made this first day of July, A. D. 1907, by and between Edward Francis, of Cheyenne, Laramie County, Wyoming, party of the first part, and John Brown and Charles E. Cotton of Cheyenne, Laramie County, Wyoming, party of the second part,
Witnesseth: The said Edward Francis hereby promises, covenants and agrees to and with the said John Brown and Charles B. Cotton that 011 the first day of Ma}', A. D. 1908, he will convey to them by good and sufficient warranty deed, accompanied by abstract of title, all of the following-described tracts -and parcels of land, lying and being situate in the County of Laramie, in the State of Wyoming, and particularly described as follows, to-wit: All of Section seven (7), the S.W. J4 °f the N.W. the N.W. %. of S. W. J4 and the S. J4 of S. J4, Section eighteen (18), the N.W.' % and W. J4 of the N.E. %, Section twenty (20), all Section twenty-nine (29) except right-of-way of county road, in Township fourteen (14) north, of Range sixty-eight (68) west and all Section one (1), the S.E. %. and W. of N.E. J4, Section two (2), all Section three (3), all Section ten (10) except the S.W. Li of the S.W. all Section eleven (n), the W. ¡4 of N.W. S.E. 4 of N. W. #, S.W. Li, W. ¿4 of S.E. )4 and the S.E. % of S.E. T4, Section twelve (12) in Township fourteen (14) north, of Range sixty-nine (69) west of the Sixth Principal Meridian and containing four thousand, nine hundred, six and no/ioo (4,906.00) acres, more or less, according to the government survey of said land (excepting the right-of-way of the Cheyenne and Northern Railway), together with all the appurtenances and all the water rights thereunto belonging. In consideration of the foregoing, the said John Brown and Charles E. Cotton covenant, promise and agree to and with said Edward Francis as the purchase price for said land the sum of nineteen thousand, six hundred, twenty-four and no/ioo dollars ($19,624.00) in manner as follows, to-wit: Three thousand, six' hundred, twenty-four
It is mutually agreed by and between the parties • hereto that the said warranty deed shall be delivered to said John Brown and Charles E. Cotton and $9,500.00, the balance of said purchase money, shall be delivered to said Edward Francis at the Stock Growers’ National Bank at Cheyenne, Wyoming, on said first day of May, A. D. 1908, and this agreement fully performed at said time and place.
It is fully agreed that in the event that said John Brown and Charles E. Cotton shall fail or refuse to carry out and perform their agreements, before set forth, after said Edward Francis shall have signed this contract, they shall and will forfeit all payments made on this agreement.
Said parties respectively bind their heirs, assigns and legal representatives to the faithful performance of the terms of this agreement.
In Witness AVhereof, The said parties have hereunto set their hands the day and year first above written.”
It is further alleged and admitted that on-August 5, 1907, Charles E. Cotton, one of the parties to the contract, E. D. Cotton and Edwin Delahoyde, two of the plaintiffs, entered into a contract in writing, by the terms of which, Charles E. Cotton, for value, assigned them all his interest in and to said contract and the lands described therein. It is admitted by the pleadings that the date of making the final payment Avas extended by two separate written agreements to May x, 1910. It is further alleged in the petition that plaintiffs performed all the conditions of the contract to be by them performed, and that they have always stood ready, able and willing to do so and that defendant has wholly failed and refused to execute a conveyance of the land as by his contract he xvas bound to do and that $3,624 was paid to
The defendant for answer and cross-petition admitted the ownership of the land and the execution of the contracts of July 1, 1907, August 5, 1908, and of May 1, 1909, extending the time to make final payment to May 1, 1910; that he paid the mortgage indebtedness thereon of $6,500 and accrued interest as alleged in the petition and denied each and every other allegation set forth in the first cause of action pleaded in the petition; he further admits that he received and used the profits and income of said lands from May 1, 1910, to the commencement of this action as alleged in plaintiffs’ second cause of action.
For a further answer to plaintiffs’ first cause of action defendant alleged that said John Brown and C. E. Cotton violated the conditions of the contract of purchase of the land and refused to comply with its conditions in this that after defendant had signed said contract and said contract had been deposited in escrow in the Stock Growers’ National Bank at Cheyenne, Wyoming, plaintiffs failed and refused to make payment of the sum of $3,624, as stipulated, acknowledged and receipted thereon, but paid only $1,812, and after granting the extension of time within which to make full payment under the terms of the contract, they, on May 3, 1910, and not on April 30, 1910, offered to pay an additional sum of $14,188, and demanded that defendant accept the same in full settlement of the balance of the purchase price or the sum of $16,000, which would be $3,624 less than the purchase price stipulated, which was $19,624, and that defendant refused to accept the same, no other or greater sum having been tendered. That notwithstanding Cotton and Brown in and by their contract agreed
Defendant for a further answer and cross-petition alleges that plaintiffs procured the contract and two extensions of the time within which to complete said contract to be recorded in the office of the County Clerk of Earamie County, Wyoming, that being the county in which the land is situated, in furtherance of their attempt to purchase said land at a price less than agreed upon, thereby creating a cloud on said title, the removal of which is prayed.
Plaintiffs filed their reply, in which they deny the new matter alleged in the answer, except as otherwise admitted; admit that they agreed to assume the payment of the mortgage of $6,500, and allege that they are yet ready and willing to pay the same upon defendant carrying out the provisions and performing the conditions of the contract to be by him performed; deny that defendant was occupying the land as a homestead and, if so, they would concede to him the right of selection which he has failed to do and that they would accept the balance of the land or that remaining outside of the homestead selection óf 160 acres.
The court upon request made and numbered its separate findings of fact and conclusions of law, and while some of the admissions in the pleadings are included in the findings
“1. That plaintiffs and defendant entered into contract pleaded by plaintiffs in their petition, on the 1st day of July, A. D. 1907. 2. The court doth find, that by said contract, the said defendant agreed to convey to John Brown and Charles E. Cotton, by good and sufficient warranty deed, accompanied by abstract of title, all the described tracts and parcels of land described in plaintiffs' petition filed herein, upon the payment to the said defendant of the sum of nineteen thousand, six hundred and twenty-four dollars ($19,624.00), same being the purchase price stipulated to be paid in said contract, to which finding defendant at the time duly excepted. 3. The court doth further find that John Brown and Charles E. Cotton did agree, under said contract with the said Edward Francis, defendant, to pay said purchase price in manner following, to-wit: the sum of three thousand, six hundred and twenty-four dollars ($3,624.00) on the 1st day of July, A. D. 1907, and that said date was the date upon which the said contract was entered into, and to pay the balance of the purchase price, to-wit: sixteen thousand dollars ($16,000), on the 1st day of May, A. D. 1910, to which finding defendant at the time duly excepted. 4. The court doth further find that the said John Brown and Charles E. Cotton did pay to Edward Francis, the defendant, the said sum of three thousand, six hundred and twenty-four dollars ($3,624.00) on said 1st day of July, A. D. 1907, and that said sum of three thousand, six hundred and twenty-four dollars ($3,624.00) has been in the possession of the said Edward Francis, defendant, ever since said 1st day of July, A. D. 1907, to which finding defendant at the time duly excepted. 5. The court doth further find that the said Charles E. Cotton, on the 5th day of August, A. D.-1907, made an assignment of his interest in the said contract to Edwin Delahoyde and E. D. Cotton, two of the above named plaintiffs. 6. The court doth further find that the date stipulated in said contract on
“Conclusions of Law. And as and for its conclusions of law, the court doth find: 1. That by reason of the fact of defendant having refused to convey to plaintiffs by good and sufficient warranty deed, the lands described in the aforesaid contract, on the 30th day of April, A. D. 1910, that thereby the said defendant has violated the terms and conditions of said contract to be fulfilled on his part, to which finding defendant at the time duly excepted. 2. The The court doth further find that by reason of said defendant having failed to comply with the terms and conditions
Judgment was rendered as follows:
“It is, therefore, ordered, adjudged and decreed by the court: First, that the plaintiffs do have and recover judgment against the said defendant, Edward Francis, for the sum of three thousand six hundred and twenty-four dollars ($3,624.00), together with interest at eight per cent per annum on said sum from the first day of July, A. D. 1907, and for the sum of nine hundred and fifty-two dollars and fifty-six cents ($952.56), same being interest at eight per cent per annum on the sum of four thousand dollars ($4,000.00) from the first day of May, A. D. 1910, making a total of six thousand and forty-three dollars and four cents ($6,043.04). Second, it is further ordered, adjudged and decreed by the court, that upon payment of the aforesaid sum of money to plaintiffs herein by the said defendant, the said plaintiffs be ordered and adjudged and decreed to cancel, at once, upon the records in the County Clerk’s office of Earamie County, the contract in suit here, together with its assignment and the extensions of said contract, and that upon such payment of the aforesaid judgment*544 money by the defendant to plaintiffs herein, said contract be, and the same is, hereby cancelled. Third, it is further ordered that the defendant pay the costs of this action incurred. To which judgment the defendant at the time duly excepted. To all of which findings and judgment the plaintiffs then and there duly excepted.”
1. It is assigned as error that the findings of fact, conclusions of law and judgment are not sustained by the evidence and are contrary to law. It will be observed that the court upon the issues and proof denied plaintiffs a specific performance of the contract, but awarded them damages for its álleged breach. The action of the court in denying a specific performance of the contract is not complained of by the plaintiffs, and whether the court erred in that respect need not be here considered other than to say that this ruling of the court in the absence of objection and exception by plaintiffs affirmatively established that issue upon the record in favor of defendant. The case then presents the question as to what amount of recovery for breach of a contract is permissible where one or both parties to the contract are in default. In Smith v. Krall et al., 9 Idaho, 535, 75 Pac. 263, an action was brought on a written agreement and a supplementary one to sell certain described real estate at a stipulated price, part of which was paid in cash and the balance in promissory notes. The terms and conditions were mutual and the court found that both parties were in default and that in such case a court of equity will place the parties as nearly in statu quo as possible. This rule obtains as a right to cancel a contract and is found in §688 of Pom. Eq. Rem., and is supported by abundant authority. It is an application of the rule that in equity the party asking' relief must come into court with clean hands and good faith. It is elementary that a contracting party who is without fault upon breach of the contract by the other party may elect to sue and recover damages for a breach of the contract, or he may recover back money paid as upon a consideration which has failed. (Reusens v. Mexican Nat.
In the case before us it is not alleged nor is there any evidence as to the value of the land which was the subject of the contract at the time the deeds were to be executed. It follows that plaintiffs’ right to recover and the amount if any to which they were entitled must be limited to a recovery back of the amount which they had paid, together with-interest.
The evidence is undisputed that part of the purchase price was paid and upon the facts the plaintiffs were plainly entitled to recover back the amount so paid. Such amount, that is to say, the amount paid on the contract, was in dispute, and that question comes up for consideration of defendant’s exception to the fourth finding of fact, wherein the court finds that John Brown and Charles E. Cotton paid to Edward Francis the sum of three thousand six hundred and twenty-four dollars ($3,624.00), the amount of the first payment on the contract, on July 1, 1907, the day of its execution. The evidence is undisputed that one-half of this sum was paid by Brown’s check, and that Charles E. Cotton wrote and signed his individual check for the sum of $1,812, payable to order of and handed it to Francis, who accepted it as one-half of the first payment. Subsequently or shortly thereafter and before this check had been cashed it again came into the possession of Charles E. Cotton, who testified that it was turned over to him as part payment of the amount due him upon a contract for services in making the deal and to which Francis assented. Francis denies this in his testimony, but the evidence tends to show that at no time did he claim to plaintiffs that the first payment had not been made in full until after he had refused to execute the deed,
The defendant before plaintiffs commenced this suit tendered to and through Brown to plaintiffs the sum of $1,812 and interest from the date of the contract to the date of the tender, claiming that this was all that plaintiffs were entitled to. The tender was refused by plaintiffs, and in view of the issues and the finding of the court as to the amount to which plaintiffs were entitled to recover and which finding is supported by the evidence, the plaintiffs were under no legal obligation to accept the tender, for it was less than they were entitled to. (Fidelity Savings Assn. v. Bank, 12 Wyo. 315, 75 Pac. 448). We are therefore of the opinion that the trial court’s finding and
By its fifth and sixth findings of fact the court found that Charles E. Cotton on August 5, 1907, made an assignment of his interest in the contract to Edwin Delahoyde and E- D. Cotton, two of the plaintiffs in this suit, and that the date stipulated in the contract on which to make final payment, to-wit: May 1, 1908, was by mutual agreement between the parties extended until May 1, 1910.
The. seventh finding of fact to the effect that on April 30, 1910, plaintiffs John Brown, Edwin Delahoyde and E. D. Cotton duly made proffer and tender of $16,000, the balance due under said contract to the defendant, Edward Francis, and by its eighth finding the court finds that on April 30, 1910, and ever since said date the said Francis did refuse and yet doth refuse to make and deliver his warranty deed for the land, as he had agreed to do in the contract. This finding must be considered in connection with the thirteenth finding of fact to the effect that Edwin Delahoyde on the same day, as his portion of the final payment of the purchase money under the contract, deposited in the Stock Growers National Bank of Cheyenne, Wyoming, the sum of four thousand dollars ($4,000), and that said sum has been from that day up to the date of the judgment held by said bank and that Edwin Delahoyde has been deprived of the use of said money, and in connection with the fourth conclusion of law to the effect that said Delahoyde is entitled to interest on said sum of $4,000 at the rate of eight per cent per annum from and after April 30, T910. The judgment includes an item for this interest of $952.56. We think the court erred in allowing this interest as an item of damages. According to the findings of fact, the contract was broken when Francis refused to make the deed and accept the final payment on April 30, 1910. The cause of action, if any, accrued for breach of the contract at that time. There is no theory upon which a standing tender can be sustained in this case. In so far as Delahoyde’s remedy is concerned that had accrued, and
It is unnecessary to consider the other assignments of error. The questions discussed and the conclusions reached require a modification of the judgment limiting the amount thereof to the sum of $3,624.00, and interest thereon from July 1, 1907, to the date of the entry of the judgment complained of and the judgment will be so modified and as so modified will be affirmed.
Concurrence Opinion
(concurring).
I concur in the disposition to be made of this case. The trial court having found that the plaintiffs had complied with their contract, and the plaintiffs not complaining of the failure of the’ court to grant specific performance, the ground upon which that relief was not granted is, perhaps, immaterial, but I think it is to be gathered from the findings that it was not granted for the reason that the wife of the defendant had not signed the contract and the court was unable to designate and set apart any part of the land as a homestead. Upon the theory that the plaintiffs had complied with the contract, and that the defendant, with or without fault on his part, was unable to convey the property, or, being able, refused to do so, then, in either case, in the absence of specific performance, the plaintiffs were entitled at least to be reimbursed for the money which had been paid to the defendant upon the purchase price. And that appears to have been the measure of damages adopted by the trial court. Indeed, there was no other evidence of damages, except that there was some testimony relating to rents and profits which plaintiffs were seeking to recover if they were found entitled to specific performance.
It is undisputed upon the evidence that Brown, one of the parties to the contract and one of the plaintiffs in the action, paid one-half of the amount that was required to be
The question whether the' first payment had been made was within the issues, for if that payment had not been made then the plaintiffs had not complied with their part of the contract. Whether it was made or not depended upon the view to be taken of the evidence respecting the manner of delivery and acceptance of Cotton’s check. Upon the
It is very clear that the amount allowed for interest on the sum tendered by Delahoyde is not recoverable by the plaintiffs as damages. We suppose that it was allowed on the theory that it was necessary to keep the tender good. I am not satisfied that the evidence sufficiently shows that the amount was deposited and retained in the bank in such a manner as to keep the tender good, and deprive Dela-hoyde of the use of the money. But, aside from that question, if it was necessary for the plaintiffs to keep the tender good beyond asserting in the petition in the action a readiness to pay the balance of the purchase price, it does not appear that any other part of the price tendered was so held, retained or deposited as to keep good the tender of the whole amount of the purchase price. Upon the theory, therefore, that it was necessary to keep the tender good, we do not understand that keeping good the part of the amount which was to be paid by Delahoyde would have been sufficient. But under the circumstances of the case, the defendant having refused to accept the money when tendered and refused to convey the property, it was unnecessary for Delahoyde to keep the money on deposit in the bank subject to the acceptance of Francis, but it was