92 P. 789 | Utah | 1907
Lead Opinion
This action was brought by. plaintiff for specific performance of a written contract, by the terms of which it was alleged the defendant sold to the plaintiff a ranch in Carbon county for the sum of $250. It was also alleged that the plaintiff performed all the conditions of the contract on his part to be performed, and that he tendered the agreed purchase price; but that the defendant refused to execute a deed of conveyance. It was further alleged' that in pursuance of the contract, and at the time of its execution, the plaintiff entered into and ever since has remained in possession of the land, and that he made valuable improvements thereon to the extent of $400. Defendant denied the contract alleged in the complaint, and affirmatively pleaded that he had offered to sell the land to the plaintiff, but because of plaintiff’s failure and refusal to make the payments in accordance with the terms of the offer the contract, upon notice, had been rescinded; that the rents and profits of the land during the plaintiff’s possession exceeded the taxes, the partial payment, and the value of the improvements made by plaintiff. The court found the issues substantially as alleged in the defendant’s answer, and, as conclusions of law, held the plaintiff guilty of laches and an abandonment of the contract, and denied the relief prayed for by plaintiff. On appeal, the plaintiff assails the findings and conclusions.
There is but little conflict in the evidence. Upon the ma^ terial questions involved there is none. On March 19, 1902, the plaintiff wrote the defendant: “I will give you $250 for your place; pay you $100 on or about the 20th of June, 1902, and the other $150 on or about the 1st of O'ctober, 1902. I will give you my notes if you want them, with my name and Joe’s on them. If you want to do this way write
From the foregoing it is apparent that the agreement was not a mere option to purchase, but was an agreement to sell on the one part and an agreement to buy on the other. In this respect, the agreement is as alleged in the complaint— not as alleged in the answer — and the court should have so found, and as such it will be treated by us. On June I, Í902, the plaintiff paid the $100 note. He failed to pay the $150 note at its maturity, October 1, 1902. Thereafter the defendant made oral demands for payment, and espec: ially in the year 1903 when he told the plaintiff that he would have to “fix it up” or the defendant would rescind the contract. Each time the plaintiff promised to pay at some stated time, but failed to do so. On July 6, 1903, the defendant wrote plaintiff: “Your note a.t this time amounts to $115. I wish you would drop* me a line and inform me as to whether you desire to pay the note and secure the deed, or in case you don’t say anything are you aware of the fact that the payments so far made are forfeited? Will be glad to dispose of this matter without further delay, and wish you would write me at once.” Plaintiff admitted receiving this
The evidence is somewhat conflicting as to whether the plaintiff received this letter, but- the court was amply jxistified •from the evidence in finding that he did. But the plaintiff himself admitted that notwithstanding the letter of January
The ranch consisted of about forty-five acres through which coursed a steam of water. Most of the land was wild and unbroken. Some of it had been cultivated before plaintiff’s possession. Along the river bottom were cottonwood trees, stumps, and willows. The evidence on behalf of plaintiff shows that he broke, cultivated, and seeded only about thirteen or fourteen acres of the land, of which there were about
On behalf of the defendant there was evidence which tended to show that the plaintiff dug and removed from the land' only about ten trees and ten stumps. While plaintiff testified that all he did on the land in the way of breaking, cultivating, and clearing it, and doing the riprapping improved the land to the extent of $400, yet the details of the work and the time employed, as testified to by him, were somewhat indefinite and uncertain, for he several times testified that he had no definite or independent recollection of the tim,e employed or the work done, but that such matters were only estimated by him. Much of the evidence relating thereto is of such a character -as to warrant the trial court in finding that the plaintiff exaggerated the value. Let that be as it may, those were matters more properly for the trial court. It having found the facts against the plaintiff, we are not, on review, at liberty to consider only the testimony most favorable for the plaintiff, but the findings of the court must be viewed in light of all the evidence, and of all the reasonable deductions and inferences which the trial court was warranted in drawing therefrom. Upon the land so improved, according to his own testimony, the plaintiff raised grain to the value of $115 in 1902; in 1903 to the value of about $155; in 1904, grain and potatoes to the value of about $590: and in 1905, hay and potatoes to the value of about $225. The costs and expenses of raising these crops and the amount of taxes paid by the plaintiff are not shown. From all the evidence we think the court was justified in finding that the rental' value of the premises during the time occupied by
It is said that the plaintiff testified that if the defendant had tendered a deed, he would have paid the money. That came aboirt in this way: When plaintiff was testifying, he was asked by his counsel whether he would have paid the money had the deed been tendered. This was objected to as incompetent, irrelevant, and self-serving. • The court stated that if the case were before a jury he would sustain the objection, but as it was only before the court he would overrule the objection pro forma, and consider the -admissibility of the evidence later. Thereupon the plaintiff answered in the affirmative. But, on being further examined on the question, he stated that his failure to pay the money was not because a deed had not been tendered, and that, until he had deposited the money with the county clerk, he had
This brings us to a consideration of the principal claim made by the plaintiff that, notwithstanding his delay and neglect, he is entitled to have the contract specifically enforced, because the defendant made no tender, of a deed, and therefore did not put the plaintiff in legal default. It is urged by plaintiff: That time was not of the essence of the contract; that the stipulations of the contract were mutual, concurrent, and dependent; that in such case, where the deed is to be delivered upon the payment of the price, either on a day named or without any day having been specified, an actual tender and demand'by one party is absolutely necessary to put the other in default, and to cut off his right to treat the agreement as still subsisting; that so long as neither party makes such tender — of the deed by the vendor and of the price by the vendee — neither party is in default; that the defendant could not treat the agreement as rescinded until he had made a tender of the deed, and returned the part of the purchase
It may be conceded tbat tbe stipulations and provisions contained in tbe contract were mutual, concurrent, and dependent, as is contended by appellant. It may also be conceded tbat time was not of tbe essence of tbe contract as originally made. But, as Mr. Pornery says in bis work on Specific Performance of Contracts, at section 395 (2d Ed.):
“As the doctrine that time is not essential in the performance of the contract may sometimes work injustice, and be used as the excuse for unwarrantable laches, the following rule was introduced at a comparatively late period, and is now firmly settled, which prevents the doctrine from being abused by the neglect or willfulness of either party. If either the vendor or the vendee has improperly and unreasonably delayed in complying with the terms of the agreement on his side, the other party may, by notice, fix upon and assign a reasonable time for completing the contract, and may call upon the defaulting*62 party to do the acts to be done by him, or any particular act within this period. The time thus allotted then becomes essential, and if the party in default fails to perform before it has elapsed, the court will not aid him in enforcing the contract, but will leave him to his legal remedy.”
At section 396 be says that the notice cannot be an arbitrary and a sudden termination of tbe contract; it must allow a reasonable length of time for the other party to perform, and if it fails in any of these respects it may be disregarded and will produce no effect upon the equitable remedial rights of the party to whom it is given; and that to be effectual in making the time allotted an essential element of the performance the notice must be express, clear, distinct, and unequivocal. The rule is also well stated in Pomeroy’s Equity Jurisprudence, vol. 6, sec. 815, vhere it is said.
“Where time is not of the essence, the time in which the party in default may have a further right to receive performance may be limited by the party not in default giving reasonable notice that performance must be made by a certain day. If a reasonable time after receipt of the notice is thus given the party in default, equity will not enforce specific performance in his behalf after the day named.”
This principle of law has become so well settled that it is unnecessary to multiply cases on it. We think such a notice was given by the defendant in his letter of January 2, 1905, wherein he stated the amount due, and wherein the plaintiff was notified that “unless this money is in my hands by January 15th, on the said last-named date I will declare a forfeiture and rescission of the sale agreement with you, and will dispose of the property to another party who is desirous of purchasing the same.” No claim is made that the time fixed in this notice was, under the circumstances, unreasonable, or that it took the plaintiff by surprise. The only claim made by the plaintiff in his reply to this notice was that he was hard up for money, and that he might want 10 days longer than tire defendant gave him. The defendant thereupon wrote him that he would extend the time until January 25th, but no longer. We here then have time made of the essence, which was expressly and unequivocally fixed on the 25th day of January, 1905, by the mutual agreement
Notwithstanding the subsequent agreement between tbe parties fixing tbe time of payment definitely on tbe 25th day of January, tbe plaintiff, according to bis own testimony paid no attention to the time so fixed, and made no effort to pay tbe money witbin such time. He remained silent and inactive during all the months of January, February, March, and up to April 25th, when be deposited tbe money with tbe county clerk. This was not done until be bad received tbe defendant’s letter of March 19th notifying him of tbe sale of the land to Stephens. No attempt was even made to explain the delay, nor was there any excuse offered to- ae-count for tbe failure of performance within tbe time fixed. Nor is it made to appear that- tbe plaintiff regarded tbe contract as still subsisting except as may be inferred from bis continued possession of tbe premises. When, however, time is made of tbe essence, tbe question of reasonable delay or laches is ordinarily not involved, for, as is said,
“If time is of the essence, no question of delay or laches, using these words with regard to their true meaning, can properly arise. If time is essential, the stipulation of the contract must be exactly complied with; not the delay, but the failure to perform at the exact day, cuts off the right of the defaulting party.” (Pomeroy on Spec; Perf. section 399.)
At sections 361 and 362, tbe author above quoted well points out tbe distinction between granting specific performance of contracts when time is, and when not, made essential. He says:
“Where the stipulations are mutual and dependent — that is, where the deed is to be delivered upon the payment of the price, either on a day named or without any day being specified, an actual tender and*64 demand by one party is absolutely necessary to put the other in default and to out off his' right to treat the 'agreement as still subsisting. So long as neither party makes such tender — of the deed by the vendor and of the price or securities by the vendee — neither party is in default; the contract remains in force, and either party may make a proper tender or offer and sue, until barred by the statute of limitations. This rule, however, does not apply to those contracts in which the time of performance has been made essential, and the agreement itself is to be regarded as void or rescinded if the vendee fails to make his payment on the stipulated days. In all those contracts where the time of payment by the vendee is essential and not simply material, and a fortiori in those where, if the vendee’s payments are not made upon the exact day named, the vendor may treat the agreement as at an end, the vendee must make an actual tender of the price and a demand of the deed at the specified time, as a condition precedent to his maintaining his sirit. The same is true of the vendor when the time of his conveyance is made essential. This rule is involved in the very notion of time being of the essence of the contract.”
When, therefore, tbe stipulations of the contract are mutual, concurrent, and dependent, and time is only material but not essential, so long as both parties bare taken no steps to assert their respective rights or demands for a completion, and so long as the vendor has made no tender or offer of deed or demand on the vendee, and the vendee has made no tender of the price or demand on the vendor, the contract continues to subsist until barred by limitation. So, too, when time is of the essence', yet if neither party has exercised his right to declare an end to-the contract, or where the one party has remained silent and inactive, or has otherwise done something amounting to a waiver, or has treated the contract as still subsisting, he cannot, when the stipulations of the contract are mutual,' dependent, and concurrent, legally place the other party in default until he himself has tendered performance or offered to perform. In such cases, in order that he may terminate the contract, the vendor must tender or offer of a deed, and account for the purchase money paid. Appellant has cited a large number of authorities where the principles of law invoked by him were applied, but they are not applicable here. In ordinary cases of contract, equity does not regard time as of the essence of the contract. Although in ordi
“Time may be essential. It is so -whenever the intention of the parties is clear that the performance of its terms shall be accomplished exactly at the stipulated day. The intention must then govern. A delay cannot be excused. A performance at the time is essential; any default will defeat the right to a specific performance.”
In support of this the author cites numerous cases from many different states. See, also, vol. 6, sec. 1811, of the same work, and cases there cited.
Where, therefore, time is of the essence, equity, as well as law, demands a substantial complaince with terms of the contract by him who seeks the equitable relief of specific performance- or a rescission of the contract. In such case performance, or offer to perform, within the specified time, is a condition precedent to his maintaining a suit, unless, of course, the other party, through silence or otherwise1, has waived performance within such time or thereafter has. otherwise treated the contract as subsisting. With this condition the evidence shows most conclusively the plaintiff has not complied. The contract, when declared on by him, was at an end. In addition to the authorities already cited, the following cases fully support our conclusion. Fuller v. Hovey, 2 Allen (Mass.) 324, 79 Am. Dec. 782; Chabot v. Winter Park Co., 34 Fla. 258, 15 South. 756, 43 Am. St. Rep. 192; Fry, Specific Performance, p. 419; Austin v. Wacks, 30 Minn. 335, 15 N. W. 411; 2 Warvelle on Vendors (2d Ed.), secs. 476, 747, 756; Johnson v. Evans, 8 Gill (Md.) 155, 50 Am. Dec. 678; Kirby v. Harrison, 2 Ohio St. 326, 59 Am. Dec. 680; Upton v. Maurice (Tex.
“Although, time is not ordinarily essential, yet it is, as a general rule, material. In order that a default may not defeat a party’s remedy, the delay •which occasioned it must be explained and accounted for. The doctrine is fundamental that a party seeking the remedy of specific performance, and also the party who desires to maintain an objection founded upon the other’s laches, must show himself to have been ‘ready, desirous, prompt, and eager.’ ”
From this record the conviction is forced that plaintiff fell short o'f showing himself “ready, proriipt, and eager.” That his delay of over two and one-half years, wholly unexplained and unexcused, was, under all the facts of the case, unreasonable and intentional, cannot well be disputed. It is not claimed nor could the claim be successfully made, that the defendant acquiesced in the delay, for he at all times demanded his money and insisted that it be paid. Appellanr
On a consideration of the whole case we think the evidence required a judgment for the defendant. The judgment of the lower court is therefore affirmed, with costs.
Concurrence Opinion
(concurring).
While concurring in all that is said by my Brother Straup why a specific performance cannot be decreed in this case, I nevertheless, in view of what is insisted upon by the Chief Justice in his dissenting opinion, desire to add a brief statement of the reasons upon which I base my concurrence.
The real and underlying principles that control this case, and upon which Mr. Justice Straup bases his conclusions, are not always present in cases of specific performance, and sometimes when present are obscured by the decisions, and at other times, as seems to have been done by the Chief Justice, are entirely overlooked. The facts upon which these principles arise are established beyond peradventure in this case. The controlling facts are-these: After the plaintiff had been in default of payment for about 2-J years, and both parties had continued during all that time to treat the original contract as in force, the defendant wrote a letter to the plaintiff, wherein the defendant stated that the amount due on the original contract had to be paid at a date named, and if not then paid the defendant would terminate the contract,
It is sought to be based upon the doctrine that one party' alone may not rescind a contract, and that where conditions are concurrent, interdependent, and mutual, neither party may place the other in default without his- tendering performance of the things by him to be performed. What possible relevancy has this doctrine to' the undisputed facts in this case ? There was no one-sided rescission of the contract in this case-, but it was abandoned by the acts of both parties. The case as it stands is rather one where a mutually rescinded and abandoned contract is sought to be revived by one of the parties without the consent of the other, and the court is aslced to grant this upon the equities that arose out of and cluster around the abandoned contract. It is but an attempt to enforce a dead contract through live equities. We may disguise the real condition by argument or statement, but we cannot conceal the ever-present fact that courts can neither make nor revive contracts without the consent of the parties. The mere fact that equities exist between the parties does not alter this universally accepted truth. To argue that the defendant could not alone abrogate the contract, and absolve himself from its obligations by his own acts without first tendering performance, is but an effort to bring this case within the principles applicable to another state of facts. It amounts in its last analysis to an effort to' decree specific performance upon the ground that to do so cannot injure the defendant, and gives to the plaintiff only that which, according to the popular idea of equity, he ought to have. In a case like the one at bar the inherent equities between the parties have not the slightest effect upon the question of specific performance. These are matters that may and must be adjusted otherwise than by granting specific performance. It is not of the
Dissenting Opinion
(dissenting).
I am unable to concur with my brethren in the foregoing ■opinion.
The record in this case shows that when the appellant went into possession of the land in question it was, with the exception of about 2-|- acres, in a wild state and in an untillable condition. No'part of the premises was enclosed by fence, and stock roamed over the land at will. The market value of the entire tract did not exceed $250, the price which appellant agreed to pay for it. Immediately after Mr. Eoberts, the appellant, went into possession of the premises he began clearing off the trees, stumps, willows, and brush which abounded
On April 25, 1905, Roberts deposited with the clerk of Carbon county, Utah, $242.25 for Braffett, final payment^of the purchase price with interest thereon. On the same date the clerk wrote to Braffett as follows: “Price, Utah, April 25, 1905. M. P. Braffett, Esq. Salt Lake City. Dear.Sir— John R. Roberts has deposited with me the sum of $242.25 to be paid to you when you execute a proper deed to some land that you sold about three years ago. Tours truly, D. "W. Holdaway.” On May 1, 1905, Braffett wrote to Roberts the following letter, and returned to him the unpaid note: “Salt Lake City, Utah, May 1, 1905. J. R. Roberts, Esq. Wellington, Utah. Dear Sir — Pursuant to my notice given to you some time ago rescinding negotiations looking to the purchase by you of the Famum ranch, I beg to return herewith your note for $150.00, dated March 28, 1902, due October 1st of the same year, no part of which has been paid, and payment of which was by my notice of rescission of said contract waived. M. P. Braffett.” On May 11, 1905. Roberts began this action in the district court of Carbon county,
These being the circumstances and conditions, I am decidedly of the opinion that the district court erred in finding the issues in favor of Braffett. Under the contract the rights and obligations of- the parties were mutual, concurrent, and dependent. As stated by counsel for appellant in their brief, “the right to the money was conditioned upon the delivery of the deed and the right to the deed was conditioned upon the payment of the money. . . . Neither party could put the other in default without first tendering performance.” In order for Braffett to put Boberts in default, it was incumbent upon him to tender a deed and demand payment of the unpaid purchase price. This he did not do. Therefore I fail to understand upon what theory it can he successfully maintained that Boberts alone was in default.
Assuming, for the purposes of this case, that the correspondence carried on between these parties after the last installment of the purchase price fell due made time of the essence of the contract, it did not change the nature of their obligations under the contract. These still remained mutual1, concurrent, and dependent, and, under the terms of the contract, were to be performed at Scofield, Carbon county. While it is true that Boberts failed to make final payment on the date agreed upon (January 25, 1905), it is equally true that Braffett was not ready with a deed at the time and place specified in the contract to carry out his part of the agreement. Braffett could not, without first tendering a deed, compel Boberts' to malee final payment, and thereby force him to commence suit for specific performance or else wait until it suited Braffett’s convenience to cancel the note and deliver a deed to the land. To further illustrate the contention that Braffett was not in a position to rescind the contract and declare a forfeiture of all rights that Boberts had acquired thereunder, let us suppose that when the time arrived for the payment of the money on the one hand and
“But it would seem, even where time is made of the essence of the contract, that if all the payments are due, and the vendor has failed to exercise his right to declare a forfeiture for default in making payments, he must first offer to perform before declaring same, The silence or inaction of the vendor must be regarded as a waiver of his rights, and the payment of the purchase money and tender of conveyance would become concurrent acts, and a deed should be executed and tendered to the vendee together with a demand for payment.”
In 6 Pom. Equity Juris. (Section 809, Equi. Rem. Vol. 2) the rule is tersely, and, as I think, correctly stated as follows :
“Where the stipulations are mutual and dependent — that is, where the deed is to be delivered upon payment of the price — an actual tender and demand by one party is necessary to put the other in default, and to cut off his right to treat tbe contract as still subsisting.”
While it is apparent from the record that Roberts’ failure to make final payment at the time stipulated in the contract was not due to any refusal or failure on the part of Braffett to tender a deed, yet neither the trial court nor this court is warranted in holding, under the facts as developed at the trial, that if a deed had been tendered by Braffett, Roberts would not have taken it up, and paid the balance of the purchase price. On this point Roberts testified: “I would have paid the money if Braffett had offered me the deed.” At the time this testimony was offered objections were made to it, and the trial court expressed some doubts as to its admissibility. Reference is made to this fact in the prevailing opinion, and attention is also invited to certain statements made by Roberts on cross-examination as being inconsistent with this testimony. This apparent inconsistency, if it can be called such, I think is largely due to the fact that some of the questions asked Roberts on cross-examination respecting the letters he had received from Braffett were so framed as to convey the idea that these letters not only contained demands for payment, but amounted to a tender of performance on the part of Braffett, and that he (Roberts) alone was in default. That is, counsel, in asking the questions, assumed the existence of a state of facts entirely different in some respects — vital in character — 'from that established by the proof. To illustrate this, the following is quoted from the record: “Q. Now, if you were ready to give Mark Braffett the money that was due, when he wrote to you on July 6th,
Roberts, in reply to certain questions asked him on cross-examination respecting the construction he placed on Braf-fett’s letter and why he had not paid Braffett the money, asked counsel conducting the examination the very pertinent question: “But where was the deed to come from ?” This same question might well' be asked at this time, for this court is not authorized in holding that Biraffett would have carried out the contract on his part if Roberts had sent him the money. The facts do not warrant a finding of this char-' acter. As to whether Braffett would have delivered a deed had Roberts paid him the money is a matter of speculation and conjecture. One thing is evident, however. When the money was finally tendered to Braffett, and, as I contend, during the life of the contract, he refused to accept it and to deliver a deed. It is no answer to say that Roberts did not defer making final payment because of Braffett’s default and failure to -tender performance, but' that his failure
“Where the stipulations are mutual and concurrent — that is, where-the deed is to be delivered upon the payment of the price, either on a day named or without any day being specified — an actual tender and demand by one party is absolutely necessary to put the other in default and to cut off his right to treat the agreement as still subsisting. So-long as neither party makes such tender — of the deed by the vendor and of the price or securities by the vendee^-neither party is in default; the contract remains in force, and either party may make a proper tender or offer and sue, until barred by the statute of limitations.”
In Warvelle on Vendors, section 839 (2d Ed.), the author-says. :
“Where the payment of the purchase money, or any part thereof, and the making or tender of the deed are to concur simultaneously, the-one as it were dependent on the other, they are regarded as mutuaL and concurrent acts, which disable either party from putting an end to the contract without performance or a valid offer to perform on their part. The covenants being mutual and dependent, neither party can. insist upon performance by the other without pei'formanee or readiness to perform on his part, and, conversely, the same conditions must exist to place eitht/* in default. So far as the question of time is concerned, both parties, after the day provided «for consummation, may be considered equally in default; and neither can hold himself discharged from the obligation of complete performance until he has tendered performance of his own side and demanded it on the other.”
This principle is well illustrated in tb© case of Bank of Columbia v. Hagner, 1 Pet. (U. S.) 455, 7 L. Ed. 219, where the court says:
“In contracts of this description the undertakings of the respective parties are always considered dependent, unless a contrary intention clearly appears. A different construction would in many cases lead to the greatest injustice, and a purchaser might have payment of the consideration money enforced upon him and yet be disabled from procuring the property for which he had paid it. . . . It is evident*79 the inclination of courts has strongly favored this construction as being obviously the most just. The seller ought not to be compelled to part with his property without receiving the consideration, nor the purchaser to part with his money without an equivalent in return. Hence, in such eases, if either a vendor or a vendee wish to compel the other to fulfill his contract, he must make his part of the agreement precedent, and cannot proceed against the other without an actual performance of the agreement, on his part, or a tender and refusal.”
In the case of Peck et al. v. Brighton Co., 69 Ill. 200, it is said:
“We think it a clear proposition that the appellants had no power to forfeit the contract unless they were ready and had the ability to convey according to its terms. How should appellants have shown that they could convey and were ready so to do ? The answer is obvious. A deed should have been executed by them and the widow, and tendered to Iglehart and payment demanded.” And in the same opinion the court further observes: “Had appellants undertaken to enforce payment of the purchase money by a suit at law, they could not have obtained judgment without first tendering a deed for the premises.”
So in this case, if Braffett bad brought suit against Roberts to recover on the note representing the unpaid purchase price, he could not have obtained judgment without first tendering a deed of the land. (Stein v. Waddell, 37 Wash. 634, 80 Pac. 184; Telfener v. Russ, 162 U. S. 170, 16 Sup. Ct. 695, 40 L. Ed. 930; Robinson v. Harbour, 42 Miss. 795, 97 Am. Dec. 501, 2 Am. Rep. 671; Chew v. Egbert, 14 N. J. Law, 446.)
While the trial court did not expressly find that Roberts had forfeited all rights under the contract, yet the findings made by the court and the judgment rendered thereon have that effect. The contract in this case did not provide for forfeiture in ease Roberts failed to pay the notes, or either of them, when due. Courts of equity look with disfavor upon forfeitures, and, as declared in the case of Frink v. Thomas, 20 Or. 265, 25 Pac. 717, 12 L. R. A. 239, a ease in many respects similar to the one at bar, “ ‘compensation’ and not, ‘forfeiture’ is a favorite maxim with a court of equity.” Even where contracts of the class to which the agreement under consideration belongs provide for forfeitures, courts of equity, when appealed to, will almost invariably relieve the
“None of them are eases of purchases of premises accompanied with a long enjoyment and the expenditure of moneys on them and payment of two-thirds of the purchase price.” . And in the course of the opinion he further said: “The proposition which is maintained by defendant’s (vendor’s) counsel is a bold and startling one. It seems to me that this is too monstrous a proposition to he maintained in the nineteenth century. For while the application of this rule to the case of a contract which is not executed, by the payment of any part of the purchase money, is strictly just and proper, it is clear that to apply it to cases such as I have supposed, or to the very case at bar, would work the greatest injustice.”
Pomeroy, in volume 6 of bis Equity Jurisprudence (volume 2, Equi. Rem. section 816) says:
“Contracts often contain a clause that, if payment is not made at the day, the defaulting vendee shall forfeit all payments previously made and lose his right to the land. The courts of equity in England and most American jurisdictions deal with such forfeiture clause on the principle that equity abhors a forfeiture and will relieve from it. It will, if. possible, consider the clause as a stipulation for security of performance, and not as intending a great loss to one party by a slight failure to perform, and will decree a performance against the vendor with compensation for delay by interest on the purchase money, thus relieving against the forfeiture.”
And his work on Contracts and Specific Performance, section 380, he further illustrates the doctrine as follows:
“Where the clause provides for a forfeiture upon the nonpayment of the purchase price, at the time or times stipulated, and is, therefore, intended to secure punctuality in the payment, it has been regarded almost a matter of course for a court of equity to disregard it, and to permit a subsequent payment, since interest is treated as a sufficient compensation for the delay.” And while the author says that “the*81 failure must not be willful, nor the delay unreasonable,” and that “the default itself must happen through accident or mistake,” he also, in the next succeeding section (381), states the well-recognized rule of equity that: “Acts of part performance by the purchaser — taking possession of the land, part, payment of the price, the making of valuable improvements — may, of themselves, constitute a separate and sufficient ground, independently of the provisions of the contract, for relieving him from the effects of a forfeiture incurred by him through failure to complete his performance within the allotted time.”
The trial court, as a conclusion of law, found that Roberts was guilty of such “laches and lad!; of diligence as to bar him ■of recovery in this action.” In 18 Am. & Eng. Ency. Law (2d Ed.), 97, laches is defined to be “such neglect or omission to assert a right as, taken in conjunction with lapse of time more or less great, and other circumstances causing prejudice toan adverse party, operates as a bar in a court of equity.” (The italics are mine.) In the case of Chase v. Chase, 20 R. I. 202, 37 Atl. 804, it is said:
“Laches in legal significance is not mere delay, but delay that works a disadvantage ■ to another. So long as the parties are in the ■same condition, it matters little whether one presses a right promptly ■or slowly, within limits allowed by law; but when, knowing his rights, Tie takes no steps to enforce them until the condition of the other party has in good faith become so changed that he cannot be restored to his former state, if the right be then enforced, delay becomes inequitable and operates as estoppel against the assertion of the right. The disadvantage may come from loss of evidence, change of title, intervention of equities and other causes; but when a court sees ■negligenoe on one side and injury therefrom on the other, it is a ground for denial of relief.” (Italics mine.)
Pomeroy, in bis work on Equity Jurisprudence, vol. 5, ■section 21, vol. 2, Equi. Rem.), has incorporated the doctrine as thus announced by the Rhode Island court into his text, and says: “The true doctrine concerning laches has never been more concisely and accurately stated.” This •court, in the case of Hamilton v. Dooley, 15 Utah 280, 49 Pac. 769, speaking through Justice' Bartch, said:
“When the assertion of the right is neglected or omitted for a period of time more or less great, and under such circumstances as to cause prejudice to an adverse party, it may operate as a bar in*82 equity. Although a- proper ingredient in the law of laches, the instances seem to be rare where courts have declared that mere lapse of time may effect a positive bar, even in case of purely equitable jurisdiction; while, on the other hand, relief has frequently been granted, notwithstanding great delay, when substantial justice could yet be done between the parties. Therefore mere lapse of time, where the parties remain in the same relative position, the delay working no serious wrong to the adverse party and justice being possible, will not operate as a bar in equity.” (5 Words & Phrases, 3969-3972.)
There is no fixed or settled standard by which the doctrine of laches can be applied in all cases where it is sought to be invoked. Therefore the question as to what delay or extent of time will constitute laches cannot be determined by the application of purely legal principles, but must be determined by the facts in each particular case. The delay of a few weeks under a given state of facts might constitute laches, where as under another and different state of facts a delay of sóveral years might not amount to laches. In Wheeling Bridge & Terminal Ry. Co. v. Brewing Co., 90 Fed. 189, 32 C. C. A. 511, it was held that seven years did not constitute laches, the delay having caused no change in the conditions nor. in the relative positions of the parties.
It is riot claimed, nor does the record show, that Braffett has to any degree been injured or prejudiced by the delay in this case. In fact, the record rather tends to show the contrary. The interest tendered him on the unpaid balance of the purchase price far exceed the natural raise in the value of the land. Therefore, to hold that the delay of Roberts in tendering payment in this case is a bar to the equitable relief prayed for in the complaint, would1 be extending, or rather expanding, the doctrine of laches far beyond any limits recognized by the text-writers or declared by the courts, anc} would be ignoring and brushing aside the very reasons given for the existence of the doctrine. By granting the relief, Braffett would receive his principal with interest at the rate of twelve per cent, per annum, which is the highest rate of interest that can be legally contracted for and collected under the laws of this state. By refusing specific performance, Roberts will suffer a great and irreparable injury. . He will
“It -will be seen that, in ease of delay in completion by default of either- party, the compensation is already provided for, without any special direction of the court, by the very terms of the agreement. And this is always equitable and just. If the vendor is in fault and delays to convey the legal title, the vendee does not generally lose anything substantial by the delay; he has the possession all the time, and the rents and profits, and it is right and fair that he should pay interest on the purchase money until the whole is paid up. If the vendee is in default and causes the delay, the vendor still obtains his interest, which equity has determined to be sufficient compensation for a delay in making pecuniary payments.”
In volume 1, section 368, of bis work on Equity Jurisprudence, tbe same author says:
“While the legal relations between the two contracting parties, are wholly personal — things in action — equity views all their relations from a very different standpoint. ... So far as the interest or estate in the land of the two parties is concerned, it (the contract) is regarded as executed, and as operating to transfer the estate from the vendor and to vest it in the vendee. . . . The vendee is looked upon and treated as the owner of the land. . . . Although the vendor remains owner of the legal title, he holds it as a trustee for-*84 the vendee, to whom all the beneficial interest has been passed having a lien on the land ... as security for any unpaid portion of the purchase money. ... It follows also as a necessary consequence that the vendee is entitled to any improvement or increment in the value of the land after the conclusion of the contract, and must himself bear any and all accidental injuries, losses or wrongs done to the soil by the operation of nature,” etc.
Assuming, however, for the purposes of this case, that tbe question is a material one, and that the court was called upon to decide it, I still' contend that the court erred. The finding is not only unsupported by, but is contrary to, the evidence; :and, as I read the record, is contrary to every reasonable deduction that can be drawn from the evidence. When Roberts went into possession of the premises under his contract to purchase, the land, was rough, uneven, and in a wild state,; and the record shows that to convert only fifteen acres of it into tillable ground so that it would produce agricultural crops, required the expenditure of about $500 in money and labor. It was not shown, nor was there any attempt to show, that the land had any rental value whatever when Roberts went into possession. True1, Braffett alleges in his answer that “the rental value of said premises was $75 per year ex-elusive of taxes.” But, as stated, no evidence whatever was introduced to support this allegation. Leaving out of consideration the earning power of the $100 paid by Roberts on the purchase price, I think it is apparent that the interest on the unpaid note alone far exceeded the rental value of the land in the condition it was when the contract was entered into. Assuming, for the purposes of this case, that the rental value of the land was $75 per year, as alleged in the answer, and that Braffett was entitled to have credit for this amount for each of the four years Roberts was in possession as an offset against the $100 paid him on the purchase price and the money and labor expended by Roberts in improving the land, it would still leave a balance in favor of Roberts of about $300. The court, however, in effect, found — and that, too, without any evidence to support the finding — that the rental value of this wild, barren, uneven, and unimproved piece of land for farming purposes during the four years
To further illustrate the failure of the court to find in accordance with the equities of the case) we have only to consider the equitable interest represented by dollars and cents that each had in the premises. Roberts paid $100 on' the purchase price, and thereby reduced Braffett’s claim to $150. Roberts, by his own labor and money, increased the market value of the land from $250 to $700. Therefore it will thus be seen that Roberts had $450 producing power in the land, and Braffett had only $150 producing power. The court, however, in effect found that the earning power of Braffett’s interest of $150 for the four years not only equalled the $450 of value which Roberts had put into the land, but, in addition thereto, offset the $100 he had paid on the purchase price and all' taxes assessed against the premises during the time Roberts had possession. Therefore, as I view the case, a statement of the facts is all that is necessary to show the unsoundness of the finding as well as the want of equity in the judgment rendered thereon. In discussing this phase of the case Mr. Justice Straup, in the prevailing ’opinion, says: “The value of the grain and products raised by him (Roberts) on the land was $1,085. This of course was not net profits. Where, however, specific performance is invoked on equities arising from possession and improyements, the burden is on plaintiff to show his equity and the loss that will be suffered by him if specific performance is withheld.”
It is alleged in the complaint, and the uncontroverted evidence in the case abundantly supports the allegation, that “the plaintiff has at all times since the execution of said contract been in the exclusive possession of said premises, and, relying upon the said contract and his right to the possession and occupation thereof, has made valuable and extensive improvements thereon in good faith and for the purpose of bettering and making more valuable said premises and property. . . . The improvements thus made cost to exceed,
The note representing the last installment of the purchase price drew interest at the rate of 1 per cent, per month, and it
The conclusion of law wherein the trial court found that the plaintiff’s lack of diligence amounted to a “practical abandonment of the agreement” is not supported by any fact found or proved in the case. The record shows that Roberts remained in possession, paid all taxes assessed against the land, and continued to improve and cultivate it up. to the time he commenced this action. The court undoubtedly arrived a.t its conclusion from .the fact that Roberts failed to tender final payment of the purchase price until long after it became due. When a party goes into possession of land under a contract to purchase and continues in possession, pays all taxes assessed against the premises, and by his own labor and expenditure improves the land until it is nearly trebled in value, as was done in this case, the fact that he may not make the final payment when it becomes due- does not, as a legal proposition, create a presumption that he has abandoned or intends to abandon his contract and forfeit all rights acquired thereunder. In Pomeroy on Contracts and Specific Performance, section 315, the author says:
*89 “The rule is applied more readily, a much longer delay is allowed, and the excuse is more leniently examined and favorably received, when, during the period of delay, the purchaser has been in possession, and has been permitted to so remain;. for the fact of such possession rebuts any presumption which might otherwise have arisen from the delay that the contract was abandoned, and shows that in the intention of the parties it was still kept as a subsisting and binding agreement.”
Tbe eyidence in tbis ease, as disclosed by tbe record, conclusively shows that Roberts neither abandoned nor intended to abandon bis contract.
Tbe equities of tbis case are all in favor of Roberts. It is not a case where tbe plaintiff has in any degree acquired inequitable advantages by lapse of time. Tbe increase in the value of tbe land from $250 to $Y00, as shown by tbe record, is not due to any natural rise, but is wholly due to the money and labor expended thereon by Roberts since be went into possession of the same. Braffett would not be injured by specific performance in this case, because he would get the balance due on the purchase price, with interest thereon at the rate of twelve per cent, per annum, which, it must be conceded, is a very liberal rate of interest.
There is another principle involved in this case, which,, in my judgment, precluded Braffett from rescinding the contract and declaring a forfeiture. Roberts, by paying bis first note, and, in pursuance of his contract to purchase, paying the taxes each year and $25 for litigating the water right connected with the land, acquired an equitable interest in the land to the extent of the payments thus made (Jennison v. Leonard, 21 Wall. [U. S.] 302, 22 L. Ed. 539) — an interest which Braffett could not terminate without at least repaying, or offering to repay, the money he had received as part payment of tbe land, and returning to Roberts tbe unpaid note representing tbe balance of the purchase price. Braffett neither paid nor offered to pay back the money he had received as part payment of the land, nor did he return the note until after Roberts had deposited the money due thereon, principal and interest, with tbe clerk of the court in which this action was brought. Therefore, what Braffett
“There is yet another reason why plaintiff cannot have this contract rescinded. It appears from the complaint that soon after making the contract defendant paid $340 of the purchase price. Before plaintiff can abandon the contract and treat it as at an end, he must refund or offer to refund the money paid in part performance of it, with legal accrued interest. It is a general rule that in order to disaffirm a contract and entitle a party to the right resulting therefrom, the rescinding party must put the other in statu quo. ... It would certainly be unjust to permit plaintiff, after having received a part of the purchase. money, to put an end to the contract, upon the failure of defendant to pay the remainder, without offering to account to him for the money already paid. He who seeks the aid of a court of equity must himself do equity. If plaintiff had tendered a deed such as the contract required, he should, in addition, have returned the notes given by defendant, for the purchase money, and the amount paid him by defendant, with legal interest, or at least have offered to return them, before he could be permitted to rescind. This seems to be the universal rule. The party against whom its rescission is sought must be placed in statu quo."
This principle of law is tersely, and, in my judgment, correctly, stated in Y Ency. PL & Pr., 319, 320, as follows:
“Ejectment may be maintained by a vendor to recover possession of real estate from a purchaser who has gone into possession, with the permission of the vendor, under a contract of purchase with the terms of which he fails or refuses to comply, the vendor being then at liberty to treat the contract as rescinded, provided the contract be first legally rescinded by the vendor, by repaying the purchase money already paid, with legal interest thereon, less a fair rental for the premises, .and delivering up the notes or bonds given for the balance of the purchase money, or offering to do so. In other words, the vendor must place the vendee in statu quo.”
“The vendors conld not abandon the contract and treat it as at an end, without refunding to the vendee the money he had paid in part performance of it. For it is a general rule that, in order to disaffirm a contract and entitle the parties to the rights resulting therefrom, both parties must be placed in statu quo. It would certainly be unjust to permit the vendors, after having received part of the purchase money from the vendee at the time of the contract, to put an end to the contract upon the failure to pay the residue of the purchase money, and to make a resale to a third person, without refunding the money paid.” (Pomeroy on Con. & Spec. Per., 393; 1 Page on Contracts, sec. 137; 24 Am. & Eng. Ency. Law, 1105, 1110; Bohall v. Diller, 41 Cal. 532; German Sav. Inst. v. Machine Co., 70 Fed. 146, 17 C. C. A. 34; Pomeroy on Contracts, 393; Andrews v. Hensler, 6 Wall. [U. S.] 254, 18 L. Ed. 737; Brown v. Witter, 10 Ohio 143; Teter v. Hinders, 19 Ind. 93; Johnson v. McMullin, 3 Wyo. 237, 21 Pac. 701, 4 L. R. A. 670; Kauffman v. Reader, 108 Fed. 171, 47 C. C. A. 278, 54 L. R. A. 247.)
While there are a large number of cases that hold, where a vendor under a contract of sale makes default and fails to pay the purchase price at the time specified in the contract, the vendor may declare a rescission, it will be seen, however, on an examination of these cases, that they relate to contracts '■under which the vendor had received no substantial benefits from a partial performance by the vendee. They illustrate the well-recognized principle that when one party only has made default and the parties can be put in stalu quo the other party may rescind. The doctrine announced in this class of cases is therefore inapplicable to the case at bar. I have not been able to find a case involving the same or similar state of facts such as the record discloses in this case, wherein it was held that the plaintiff was not entitled to any relief whatever.
It is argued by Mr. Justice Trick, in his concurring opinion, that the correspondence carried on between the parties was, in effect, an agreement that unless' Roberts made final payment on or before the date therein mentioned (January 25, 1905), the contract would, by mutual consent, be rescind
The theory that there was an agreement to rescind is advanced for the first time in the concurring opinion written by Mr. Justice Brick — a theory, which, as I read the record, is entirely at variance with the facts. Bor this court to hold that there was any 'such mutual agreement or understanding between the parties, it must read into the correspondence referred to the following propositions: Birst, that the mutual, concurrent, and dependent covenants of the contract of sale were eliminated and independent covenants substituted therefor; second, that as a condition precedent to receiving a deed for the property Roberts was bound to pay the balance of the. purchase price before receiving a deed to the property, and, in case of failure on his part to make the payment unconditionally as stated, the contract, by its own terms, would be rescinded and terminated, and as a result he would thereby be compelled to surrender the property to Braffett without having any of the purchase money which he had paid refunded, and without receiving any remuneration whatever for the outlays he had been to in improving the farm, and without having returned to him the money paid
There is another feature connected with these demands made by Braffett for his money that merits consideration, and which, as I view the case, conclusively shows that BTaffet himself defaulted, and therefore he could not rescind the contract. The letters in which he demanded payment, and in which, it is claimed, he made time, of the essence of the contract, were written from Salt Lake City, where he, at the time, resided. In one of these letters he says: “Please take notice that unless this money is in my hands by January 15, . . . I will declare a forfeiture and rescission of the whole agreement,” etc. Now, the contract of sale was to be performed at Scofield, Carbon county, and it will be observed that in neither of his. letters did Braffett say that he would be at Scofield to receive his money and carry out his part of the agreement, nor did he designate any person to whom Roberts Could pay the money, get his note and receive a deed to the land. Therefore I think the only reasonable deduction that can be drawn from the letters written by Braffett in which he demanded payment is that the demand was for the pay
In the discussion of this case and in the application of legal principles to the questions involved, it must be borne in mind that it is not a case where the vendee has refused to proceed further under the contract and has signified his intention to no longer be bound by its terms, thereby relieving the vendor of his obligations to perform or offering to¡ perform his i part of the contract, but it is a case in which the whole course of conduct of the vendee in relation to the transaction since he entered into possession of the premises shows that it has been his intention all along to ultimately pay for the land and acquire a title thereto. In the opinion written by Mr. Justice Straup, it is said that: “The evidence further shows that until plaintiff deposited the monéy with the clerk of Carbon county, no demand o*r request had been made by him for a deed, nor did the defendant ever make an actual tender.” The fact is that the defendant at no time made any kind'of a tender whatever, either actual or otherwise. In going through the record in this case we look in vain for any evidence which tends to show that Braffett at any time or place had a deed made out ready for delivery to Roberts upon payment by the latter of the unpaid purchase price of the land. In -fact, so far as the record shows, Braffett, in all of his correspondence and personal interviews with Roberts respecting the matter in controversy, never mentioned a deed but once, and that was in his letter of
Bor the reasons herein stated, I am of the opinion that the cause should be reversed, with directions to the trial court to enter judgment for the plaintiff as prayed for in his complaint.