185 Ga. 771 | Ga. | 1938
Lead Opinion
1. The plaintiff sued to enjoin the prosecution of an eviction proceeding instituted by the defendant against him as a tenant holding over. He alleged that he entered into possession of the property under a contract of rental with the defendant, for a period of twelve months which had not expired, and that the contract embodied an option to purchase at any time within such period. He prayed for an injunction to prevent his eviction, and for specific performance of the option agreement. It appeared upon the trial that the agreement was not in writing, and that the plaintiff was already in possession as a tenant at the time it was made. The defendant pleaded among other things, the statute of frauds. The plaintiff's status was not changed under the contract, if at all, until after its alleged repudiation by the defendant. The plaintiff claimed an exception to the statute, in view of the following facts: (1) that he tendered the purchase-price, which was refused by the defendant; (2) that he would not have entered into the contract of rental without the option to purchase (3) that in view of the contract the defendant as landlord was relieved of the expense of making needed repairs and improvements: (4) that on faith of the agreement the plaintiff made contracts with others in reference to the business conducted by him on the premises: and (5) that he had paid the rent as agreed. Held:
(a) Under the evidence, none of the facts enumerated constituted such part performance of the option agreement or so prejudiced the plaintiff as to create an exception to the statute of frauds. *772
(b) The verdict in the plaintiff's favor, as related to specific performance, was contrary to the evidence and without evidence to support it.
2. Since the plaintiff had no equitable interest to protect, and showed no other defense to the eviction proceeding which he could not assert by counter-affidavit, he was not entitled to an injunction to arrest the eviction proceeding, although such proceeding may have been prematurely instituted, as contended by him. The verdict in his favor was unauthorized under any theory, and the judge erred in refusing to grant a new trial.
1. After a careful examination of the record, we have reached *774
the conclusion that the verdict in favor of the plaintiff was contrary to the evidence and without evidence to support it, and that the judge erred ill refusing to grant a new trial on the general grounds. We are reluctant to set aside a second verdict in favor of the plaintiff, as well as to disagree with the learned counsel for the defendant in error who so earnestly contend that the verdict should stand. At the time of the first verdict, however, the defendant had not pleaded the statute of frauds, and therefore the second trial involved a new and distinct issue which apparently was not considered on the first trial. Bridges v. Williams,
In reviewing the ease on the general grounds, all conflicts in the testimony should of course be resolved in favor of the plaintiff. Let us say then that in July or August, 1935, the defendant did agree to rent the property to the plaintiff for the period of twelve months beginning October 1, 1935, and as a part of this agreement gave to the plaintiff an option to purchase the property at the sum named at any tune within such period. The agreement, however, was oral, and was thus within the statute of frauds, unless there were other facts to reader the statute inoperative. While an option to purchase land may not pass any interest in the land before the exercise of time option (Franklin v. McCormick,
The plaintiff relies upon several things which he contends should remove the case from the domain of the statute. They will now be examined in order.
First. He alleges and proves that within the twelve-months period he tendered to the defendant $8000, "the price named in his option," and demanded a deed to the property, which the defendant refused. These facts alone did not create an exception to the statute. The plaintiff still has his money, and is not prejudiced. Printup v. Mitchell,
Second. The plaintiff would not have entered into the contract of rental if it had not contained an option to purchase. This fact alone does not help the plaintiff in the slightest degree. It is no answer to the statute of frauds to say that he would not have entered into an oral contract as to one matter if it had not contained an oral promise with respect to another matter. One can not lift *777
himself by his own bootstraps. Where an oral contract embraces two agreements in reference to different subject-matters, one being subject to the statute of frauds, neither agreement is aided by the other, so far as the statute is concerned. This is true for the reason that both agreements are subject to the same infirmity as related to such statute. While the rental agreement for not more than one year was valid (Steininger v. Williams,
In Harper v. Gorley,
Third. It is contended that in view of the contract the defendant as landlord was relieved of the necessity of expending $2500 for needed improvements. After referring to improvements needed, the plaintiff testified as follows: "I explained all these timings to Mr. Neely, and told him that through things had been improving I could not operate the place under those conditions another year, and that the place must be fixed up. We had several conservations about it: and as he had other pressing matters, he put mine off, and finally said that we might later work out some way of remodeling it. Everything was so vague that I later asked him that if he could not make these improvements, would he sell the property. he said that he would, and first offered it to me for $10,000. We discussed the matter, and he finally said $8000. I said, "If you will sell it for $8000 and give me the time to raise the money I will keep it and pay you the same rent I paid last year, $50 a month, or until such time as I can raise the money. I will go to work on it and try to raise it as quickly as I can and keep you posted on it." . . . Yes, there was a new contract made in 1935. but no more than a verbal one. I don't know the exact month it was made, but it was either in July or August. I won't say which. I can't tell you which it was, because he asked me for an increase, and we had various discussions. He didn't make an increase, because I told him I couldn't pay any more unless the building was remodeled, and I couldn't even continue to operate the place if it was not remodeled. He did not remodel it. I mean both repairs and remodeling, because the building has been leaking for years. In the colored hallway in the back there was a leak. No, he hasn't repaired every leak I told him about. He sent something up there to put on the roof, but it is still there. I notified him about the leaks a number of times. I have paid Mr. Neely no money at all on the building. He wouldn't accept it. I have made no improvements on the property, no more than *780
paint and such as that. I have done no more than I have done in previous years. Yes, conditions were just as good or gradually better in 1935-1936 than they were in 1934 and 1935. They had been gradually improving since 1933, and were much better than they were in 1930. I paid no more rent in 1936 from August, 1935, than I had the previous year, because I had an agreement not to, because I was going to buy the building." In another part of the evidence it appears that the improvements desired by the tenant would have cost about $2500. So far as shown, there were no latent defects. In the absence of an agreement to do so, a landlord is not bound to repair patent defects of which the tenant had notice at the time of entering the rental contract. Aiken v. Perry,
Fourth. On faith of the agreement with the defendant, the plaintiff entered into contracts with others for moving pictures for the year beginning October 1, 1935. The fact that the plaintiff made contracts with others did not amount to any part performance of the contract between him and the defendant. In Graham v. Theis,
Fifth. Time plaintiff paid the rent as agreed at $50 per month. Reference to this fact has been made in the preceding discussion. Even if the payments of rent could be considered as having been induced by the option agreement, they could not have any greater force toward creating an exception to the statute of frauds than a partial payment of the purchase-money, which, as we have seen, would not, without more, justify a decree in the plaintiff's favor; and since there was no change of possession, the case does not come within the principle as to part payment of the purchase-money accompanied by possession. The facts do not show that the plaintiff has been harmed, or that it would be a fraud upon him for the defendant to repudiate the alleged oral agreement. In Printup v.Mitchell, supra, it was held, in effect, that specific performance will not be decreed in favor of a vendor who has "had no prejudice" or has "done nothing to entitle him to say the non-execution was a fraud upon him." See also the reference in that decision to the matter of possession,
So, it is our opinion that the verdict was contrary to the evidence and without evidence to support it, so far as it related to specific performance. This conclusion is deemed not to be in conflict with any of the decisions cited for the defendant in error. Walker v. Edmundson,
2. The verdict was in the form of answers to questions propounded to the jury by the judge. He construed the answers as authorizing a decree of specific performance and a judgment permanently enjoining the eviction proceeding. It follows from what has been said in the preceding division, that, although the plaintiff may have had a valid contract of rental for a period of twelve months from October 1, 1935, and the dispossessory warrant may have been thus premature and wrongful, the plaintiff had no equitable interest in the property and had an adequate remedy at law by the counter-affidavit which he filed. Code, §§ 55-103, 61-303;Botatoles v. Hill,
Judgment reversed. All the Justices concur, except Russell, C.J., who dissents.
Dissenting Opinion
We have carefully considered every ground of the motion f or a rehearing and the authorities cited. We have concluded that the motion should be denied, and feel that the original opinion sufficiently deals with the various questions argued, with two or three exceptions. *783
1. Is an option to purchase real estate such a. contract as the statute of frauds requires to be in writing? The English statute of frauds applied to any contract for the sale of lands, "or any interest in or concerning them." 25 R.C.L. 531, § 116. The portion of this statute which has been adopted in Georgia contains the identical language quoted. Code, § 20-401(4). In 27 C. J. 193, § 130, it is stated that in some States, however, the words "or any interest in or concerning them" have been omitted, and that "as a consequence many verbal agreements concerning real estate or creating an interest therein which would come within the terms of the English statute can be enforced in such States." The cases cited for this statement have been examined, and appear to support it. While, as recognized in the original opinion in this case, a contract granting to another and option to purchase land does not convey an interest in the land, it is nevertheless a contract "concerning land." We fully appreciate the difference between an option and a contract for time sale and purchase of land (Black v. Maddox,
It is contended that we improperly analogized an option and a contract of purchase and sale. We intended to do so only to the extent of holding that both are within the statute of frauds, and that the plaintiff is in no better position than if he were relying upon an oral contract of the latter class. Although a contract of tenancy may, like an option, "concern" lands without conveying an interest therein, where the term of the tenancy is less than five years (Code, § 61-101), agreements of that nature are governed *785
by different statutes based upon, though modifying, a different portion of the statute of frauds. Code, § 61-102; Cody v. Quarterman,
2. The movant contends that although he was already in possession as a tenant at the time he made the agreement to rent the property for another year, beginning October 1, 1935, and he did not make a new entry under the latter contract, the fact that he remained in possession for several months in the new term was sufficient with the other circumstances to render the option feature of the new agreement enforceable in equity, despite the statute of frauds. Discussing here only the question of remaining in possession as distinguished from entering, we will advert to a few of the decisions relied on by the movant in this connection. It would too greatly prolong this opinion to discuss each of the cases cited. We must therefore content ourselves with referring only to those which would seem to be most nearly in point. In Steininger v. Williams,
But it is insisted that the movant was led to remain in possession by reason of the option agreement. The movant testified that he told his landlord that he "could not operate the place" another year unless certain improvements were made, and that the landlord, instead of promising the improvements, granted him the option. The fact that the defendant remained in possession under these circumstances was not the equivalent of entering into possession. It amounted only to non-action. It has been held by this court that "mere non-action is not performance, either partial or *787
complete, and will not, therefore, take a parol contract out of the statute of frauds." Augusta Southern Railroad Co. v. Smith KilbyCo.,
3. The movant also insists that he made improvements. He testified: "I have made no improvements on the property, no more than paint and such as that. I have done no more than I have done in previous years"; also, "I made no improvements on the property as all I had was an option contract to buy and could not improve somebody else's property when I only had an option." In Farr v. West,
In the original opinion it was stated that "we do not mean even *788 to intimate that the facts would justify such a decree if the plaintiff had been out of possession and had taken possession as a tenant under the parol agreement." That question is, of course, not involved inn the instant case; but as a further precaution against the possibility of implications thereon, the writer, speaking f or himself alone, wishes to interpolate the following interrogations: Since a mere option conveys no interest in the land, and contemplates no entry or right of entry, if there had been an entry in this case in pursuance of the oral agreement of the dual nature indicated, should it not as a matter of law be considered as an entry made solely under the portion of the agreement relating to tenancy? Could it be said that such an entry was in performance of anything to be done under the option agreement?
Judgment adhered to. All the Justices concur, except Russell, C.J., who dissents.
*1