5 Wend. 638 | Court for the Trial of Impeachments and Correction of Errors | 1830
The following opinions were delivered:
The bill in this case was filed by the respondent for the specific performance of an agreement for the purchase of a lot of land ; and as one of the objections to the decree, and in my view the principal one, is that the chancellor has set up a contract differing as well from that charged in the bill as from that confessed by the answer, it becomes necessary to advert' particularly to the contract as described in the pleadings.
The bill states that the respondent was seized and had the fee simple of a certain lot or farm of land in Greenfield, in the county of Saratoga, and that it was agreed, on the 20th September, 1815, between him and the appellant, that the appellant should pay to the respondent, for the purchase money of the farm, $21,50 for every acre which the same should be found to contain on actual survey, to be paid in seven equal annual instalments, with the interest annually commencing from that date, and that the appellant would execute and deliver to the respondent his bond and mortgage on the premises, to secure the payment of whatever portion of the purchase money might be unpaid when the deed should be executed; and on the part of the respondent, it was agreed that as soon as the farm should be surveyed, so that its true contents were ascertained, he would execute and deliver to the appellant a good and sufficient conveyance of the same. The answer denies the specific agreement stated in the bill, but admits one somewhat different in its terms. The contract admitted was made at the same time as that charged in the bill, is for the same lot and the same price per acre, but the time for the payment of a part of the purchase money is different, and the agreement to allow interest on it is, as I understand the answer, positively denied. $300 of the purchase money, as the appellant states, and more if he should see fit, were to be paid in the winter after the contract was made, and the residue in seven annual in
The agreement, the performance of which is sought to be enforced by this suit, is admitted in the bill not to have been reduced to writing and signed by the parties. The appellant contends that the court of chancery had not power to decree a performance of it. On the part of the respondent, it is said that the appellant, not having set up the statute of frauds by plea, or insisted on it in his answer, cannot now avail himself of the benefit of this defence, even if the agreement was not evidenced by any writing; and if he could, that this is one of those cases where performance will be .decreed on the ground of the fraudulent conduct of the party refusing to execute.
Has the appellant waived his right to interpose the statute of frauds by omitting to plead it or insist on it in his answer ? It appears from the cases that it remained for a long time doubtful as to the manner in which a defendant could avail himself of this statute, and under what circumstances he was deemed to have renounced it. I apprehend that it is now settled, that if the defendant admits the agreement and insists on the statute, he can protect himself from a decree for specific performance, notwithstanding his admission; but if he admits the agreement, but neither pleads the statute nor insists on it in his answer, he is deemed to have renounced the benefit of it. (6 Vesey, 39.) If the bill states generally a contract which the law requires to be in writing, the court will presume that it was made with the requisite formalities to give it validity until the contrary appears. The defendant, in answering, may either plead that the contract was not in writing, or insist upon that fact in his answer. If he meets the allegation of a contract in the bill with a general denial, and the complainant is put to his proof to establish it, he must
The acts of part performance relied on, are the giving possession to the appellant pursuant to the contract, and the repeated surveys to ascertain the quantity of land and to settle the exact boundaries. After stating the contract, the bill charges that in pursuance of it the appellant took possession of the farm. There can be no doubt but that the possession of the defendant was in consequence of a contract between the parlies; it was continued 8 or 9 years, during which period a large part of the consideration money for the land was paid. But it is said the possession was not in pursuance of this contract ; that no provision being made by it for giving possession to the appellant, the possession taken by him cannot be regarded as a part performance; that the contract, as stated by the respondent, having no express provision in relation to the possession, the legal effect of such a contract is that possession should follow the deed and be subsequent to it. Upon the face of the contract, as stated in the bill, there are some facts to warrant the inference that the parties did not intend that possession should be deferred till the deed was executed. Both by the allegations in the bill and the admissions in the answer, payments were to be made before the time when it was expected the deed would be given. By the bill, it appears a mortgage was to be executed for whatever portion of the purchase money should be unpaid at the time the deed should be delivered; by the answer, $300, and if the appellant chose, more were to be paid in the winter subsequent to the making the contract, and the residue to be secured by a mortgage to be executed simultaneously with the
A criticism on the language of this part of the bill was made on the argument, which did not strike me as having much force. It was urged that the bill did not allege any affirmative act done by the respondent. That the appellant entered and took possession pursuant to the contract, is the allegation in the bill; and it is urged upon us as having a different import from a charge that the respondent gave possession to the appellant. I do not recognize the distinction. The two expressions appear to me to be equivalent in legal effect. The possession is, in my judgment, to be considered as taken on, account of the contract and pursuant to it; and being thus taken by the appellant and continued so long, it would be a fraud in him now to repudiate the contract. The. respondent may therefore allege this possession and its continuance by his permission as a part performance available, to avoid the operation of the statute of frauds. The several surveys which the respondent had made pursuant to a stipulation contained in the contract, were also urged upon us as acts done in part performance of the contract, and were of such a character as to authorize him to set them up to avoid the bar created by the statute. It is unnecessary to say whether such an effect ought to be attributed to them or not; for if the bar is removed by the act of possession given to the appellant, the respondent has a right to establish the agreement he seeks to enforce by paroi evidence.
But it is said that the contract differs so essentially from that described in the bill, that the court ought not to have decreed performance. It is very evident that the court cannot decree in favor of a contract not set forth by the complainant; but if the contract proved correspond with that described in the pleadings, it will be established and enforced, even if there be some variance between the terms described and those proved, provided this variance does not relate to
The court will endeavor to ascertain what the terms are; but when they have ascertained them, and find they vary essentially from those contained in the bill, the question still recurs, will a performance be decreed according to the proof? In Boardman v. Mastyn, the plaintiff asked a decree for a lease which the defendant had agreed to give him for twenty one years, which he was at liberty to assign ; the defendant acknowledged a lease, but the tenant was, as he said, to covenant, not to assign: such an agreement as the defendant stated was declared to be a perfectly different one from that alleged by the plaintiff. In Gregory v. Mighell, 18 Vesey, 328, the plaintiff set forth in his bill a paroi contract for a lease for certain premises for twenty one years, and asked for a specific execution of it, which was resisted on the ground that the agreement stated in the bill was not the same as that proved by the witnesses. The bill stated that the plaintiff was to pay the taxes and do the necessary repairs, but the witness who was present when the agreement was entered into, did not recollect this part of it. The master of the rolls thought it was not a substantial variation. This decision was put on two grounds : First, the part objected to as a variation was an admission by the plaintiff against himself of
I do not think a different doctrine is to be drawn from the case of Toole v. Modlicott, 1 Ball & Beaty, 393. The bill there was for a specific execution of a paroi agreement of a lease for the term of three lives. The defendant admitted an agreement with this variation : that the tenant was to give security for the rent. As there was clearly a part performance, the parties went into proof of the agreement. The proof established the agreement charged, but the defendant, when called on to execute the agreement, objected because he had not been tendered security for the rent. A person present offered to become such. The decree provided for security. On a rehearing, the defendant, who had a decree more favorable to him than the agreement had provided for, objected to it, on the ground of the variation, and the objection was not allowed. If the plaintiff had objected to it on the ground that it imposed more than he bad contracted to perform, the objection would probably have been listened to. The language of Chancellor Kent, in Phillips v. Thompson, 1 Johns. C. R. 146, is very explicit on this subject. “ Unless the plaintiff has clearly established the contract as charged, and also a part performance of the same contract, he has not entitled himself to the relief sought.” To see what application and effect this principle is to have in the present case, we must examine for a moment the testimony, and compare it with the terms of the agreement contained in the bill.
Viewing, as I do, the denial of the agreement to pay interest on the instalments to be positive, there is not in my opinion sufficient evidence to support the decree in relation to the interest. The appellant impliedly admitted, it is true, that interest was due from him, when he told the defendant in the autumn of 1823 that too much interest was cast on the account; but this admission would not conflict with his statement of the contract, for as he explains it, he was to pay in the winter of 1815 three hundred dollars and the residue in seven annual instalments. Having failed to pay these instalments as they fell due, he would be legally liable for interest after that period. The testimony of the witness being counterbalanced by the answer, there is nothing left that can authorize us to say that interest was to be paid until it be
But as this obstacle, which has embarrassed me, may have appeared, as I hope it has, less formidable to other members of the court than to myself, I will proceed and give my views succinctly on the other points made on the argument'.
It was contended that there had been so much delay that the respondent was not entitled to relief in the court below. It is very evident that this delay has been acquiesced in by the appellant so far at least as to break the force of the objection. If he intended to rescind the contract, he should have surrendered the possession.
It was also urged that the respondent was not entitled to a decree for the execution of the contract, because he had not done what it was incumbent on him to do before he could call on the other party to perform. If my views in relation to the interest are correct, this objection is probably sustainable, for though the respondent tendered a deed, he demanded of the appellant more than was due on the contract; but in any other view of the case, I should think the objection untenable,
The respondent was bound to give or tender a conveyance ; he did so; but it is supposed the tender was ineffectual, because it was such a conveyance as the appellant was at liberty to refuse; it contained, as is alleged, more lands than were included in the purchase. The two acres which had been conveyed by mistake to Seymour, were certainly a part of the lot purchased by the appellant: and had he been
The appellant has called to his aid, in order to overthrow the decree made in this case, the principle of equity, that a purchaser is not compelled to take a disputed title ; but it appears to me that the principle is not applicable to this case. The respondent’s title is unquestionable; it is what it was understood to be when the contract was made. Some difficulties as to the boundaries were apprehended, and therefore a survey was provided for.
Upon the whole case, therefore, I would find no difficulty in coming to the conclusion to affirm the decree of the court below, was it not for the variance as to the interest. I am unable to dispose of that objection in a satisfactory manner, and must therefore vote for a reversal of the decree. But I wish the cause, in case the decree is reversed, may go back to the chancellor, with a view that permission may be given, if practicable, to the complainant below, so to amend his bill as to enable him to obtain a decree for the execution of the contract as it is established. Some of the cases led me to doubt whether such an amendment could be made in this stage of the suit; but I think the remaks of Lord Re desdale, in Denison v. Little, 2 Sch. & Lef. 11, note a, furnish an authority for doing so. A bill was filed, in that case for a specific performance of an agreement for a lease. The lease, accord
The bill in this cause was filed in January, 1824, for the specific performance of a paroi contract for the purchase of a lot of land, made on the 20th day of September, 1815, on the ground of part performance. The defendant, in his answer, denies the agreement as set forth in the bill, and states the contract as he alleges it to have been made. The contract stated in the answer is materially different from that set up in the bill, and the contract stated in the bill is not supported by competent proof.
I deem it unnecessary, from the view which I have taken of this case, to examine how far a complainant can have a decree for the specific performance of a contract different from that prayed for in his bill. It appears to be consistent with sound reason and adjudged cases, that if a complainant file his bill for the specific execution of a contract materially different from that entered into, the defendant is justified in equity in opposing its execution, and the complainant on that bill ought not to have a decree for the agreement set up and admitted in the defendants answer. The case in 2 Vesey, 299, fully supports these propositions; it was for a specific execution of a contract. The defendant set up in his an? swer and proved by paroi (as has been done in this case) a different contract from that in the bill: Sir John Strange, master of the rolls, in giving his opinion on that case on the point now under consideration, says : “I am still of
In the case of Lyndsay v. Lynch, 2 Sch. & Lef. 9, the chancellor remarks: 61 The agreement admitted will not be executed on this bill: to allow this would be opening a door to new frauds; and sufficient frauds have already been practiced on bills for specific performance of agreements.” Again, he says: “ I conceive that the bill ought to be dismissed, notwithstanding the admissions of the defendant in his answer; the plaintiff having disclaimed that agreement and refused to accept a lease according to it, and even then having endeavored to compel the defendant to perform a different agreement.” I cite to this point the cases in 2 Hovenden, 6, and 5 Vesey, 45,7.
Again ; this was a paroi contract for the sale of lands, and therefore void by the statute. It is certain that an action at law could not he sustained on the agreement, and it is difficult to see why this statute is not equally binding in equity. The power of the court of chancery, then, must rest on other grounds. The specific execution of paroi agreements is decreed in chancery for the purpose of preventing fraud, The attempted fraud is the ground of relief, and the agreement should be looked to, in order to ascertain how and to what extent the fraud would be committed, and in what manner it may be redressed. It is clear to my mind, that in.order to support a decree in such a case, a part performance at least of the paroi agreement should be clearly proved. The plaintiff should prove what the contract was in fact, and the extent of its execution, and what the injury and fraud consists in. 1 Sch. & Lef. 41, 433. 3 Ves. 712, 713. 1 Johns. Ch. R. 131, The chancellor remarks: “ The ground of the interference of the court is not simply that there is proof of the existence of a paroi agreement, but that there is fraud in
I will now inquire what the contract between the parties really was, and what was to be done on the part of the complainant to entitle him to a decree, and how far and in what manner he has performed the agreement on his part. From the case it appears that the contract was made on the 20th September, 1815, and was for the purchase by the defendant of the complainant of all that part of lot No. 1, in great lot No. 2, in the 22d allotment of the patent of Kayaderosseras, north of and adjoining lands before sold by the complainant to William Seymour, in the town of Greenfield, in the county of Saratoga; that the complainant was to survey the lot and ascertain the number of acres it contained, and was to make out and deliver a deed in fee simple, containing the usual covenants; and the defendant was to pay or secure to pay the complainant, by mortgage on the premises, the amount of the purchase money, in seven annual instalments.
1. An actual survey was necessary to be made, so that the defendant might know how much money he had to pay, and to enable him to perform the agreement; and this survey was to be made as soon as it could be consistently done. 2. A deed in fee, with covenants of warranty, was to be executed ; and this was to be done as soon as the land could be surveyed, and its number of acres ascertained. Until these preliminary acts were done, the complainant had no right to call on the defendant to perform his part of the agreement. Has the complainant performed this agreement 1 It was not until about eight years after the contract was made that he pretends that he had performed his part of the agreement. In the bill he states, that on the 11th day of September, 1823, he tendered a deed to the defendant, the execution and delivery of the deed having been delayed in consequence of the want of a correct survey. To me it appears very doubtful whether the complainant ever surveyed the north bounds of the lot according to his agreement. In September, 1823,
From this view of the case, it would seem unnecessary to cite authorities. I shall content myself with citing a few which bear and appear to me to be decisive on this point. In 2 H. Blackstone, 123, it is said, “ In concurrent promises, the party suing turns his promise into a condition precedent.” This rule is of great force here, especially as the party is urging a contract void by the statute. Another rule is, “ He
In conclusion, I have only to remark that it is manifest to my mind that the complainant having omitted to comply with the fair and plain conditions of this contract, and having insisted on the payment of more money than was his due by the original agreement, and the payment of which he made a condition precedent to the delivery of the conveyance, the defendant was right in resisting his claim. I consider the interest as forming a substantial part of the agreement, as much so as the price. The complainant therefore has no right to the extraordinary aid of chancery to enforce an agreement never acknowledged or assented to by the defendant.
I am therefore for a reversal of the decree of his honor the chancellor, with costs.
On the question being put, Shall this decree be reversed ? the members of the court voted as follows:
For reversal—Mr. Justice Sutherland, Mr. Justice Marcy, and Senators Armstrong, Enos, Mather, McCarty, McMartin, Oliver, Sherman, Warren, and Wheeler—11.
Whereupon, after consultation among the members of the court, the following decree was entered :
Counsel having been heard on the part of the appellantL and on behalf of the respondent upon the petition of appeal and the answer thereto filed in this cause, and due deliberation thereupon had, and it being considered that the agreement for the sale of the lot of land in the pleadings mentioned, set forth in the .bill, and established by the decree of the chancellor, varies materially in its terms, as to the payment of interest on the consideration money from that which appears to this court to have been established by the pleadings: It is therefore ordered, adjudged and decreed, that the decree of the chancellor of the seventh of October, in the year one thousand eight hundred and twenty eight, be reversed, with the costs of this court. And it is also considered that there was at the time of filing the bill in the court below a valid and subsisting agreement between the parties for the sale of the lot of land mentioned in the pleadings, and which had been in part performed; and also that the deed mentioned in the pleadings, and which had been tendered in execution of said agreement, was such as the appellant had no right to refuse, it being in accordance with the contract for sale, admitted by the answer; it is further ordered that the record and proceedings be remitted to the court of chancery, and that the respondent be allowed to amend his bill, by striking out in that part of it which sets forth the contract the following words: “ with the interest annually, commencing from that date” And if he elects so to do within forty days, it is further ordered and decreed that the agreement for the sale of the lot of land described in the deed set forth in the bill be specifically performed, and that it be referred to a master to ascertain the quantity of land and the amount due, and upon payment of that amount with interest, that the respondent deliver the aforesaid deed to the appellant; and if the respondent does not elect so to do, that then the bill be