Adams v. Cox

191 P.2d 352, 52 N.M. 56
CourtNew Mexico Supreme Court
DecidedMarch 15, 1948
DocketNo. 5063.
StatusPublished
Cited by18 cases

This text of 191 P.2d 352 (Adams v. Cox) is published on Counsel Stack Legal Research, covering New Mexico Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Adams v. Cox, 191 P.2d 352, 52 N.M. 56 (N.M. 1948).

Opinion

McGHEE, Justice.

The plaintiffs appeal from an order dismissing their amended complaint seeking damages for the claimed breach of a contract to sell them the Lighthouse Laundry and two lots in Roswell, New Mexico.

The amended complaint, omitting the formal parts, reads:

“1. That the parties hereto are all residents of Chaves County, New Mexico.
“2. That heretofore on January 11th, 1947, the parties hereto entered into a certain written contract covering the sale and purchase of the Lighthouse Laundry and equipment and the real estate where said Lighthouse Laundry is located in the City of Roswell, New Mexico, as will more fully appear from copy thereof attached hereto, made a part hereof and marked Exhibit ‘A’. As part of the sale agreement, it was verbally agreed between the parties that the. $12500.00 to be paid in cash upon completion of abstract title, etc., was to be raised in part by a first mortgage upon the property being purchased by plaintiffs from defendant, which mortgage was to be in the sum of $7500.00 and that defendant was to be secured by a second mortgage for the sum of $7500.00 upon said property, payable as provided in Exhibit ‘A’; that plaintiffs purchased said property for operation as co-partners.
“3. That in pursuance of said agreement the parties hereto arranged for the Equitable Building & Loan Association of Roswell, New Mexico, to loan to plaintiffs the stim of $7500.00, to be secured by first mortgage upon the property being purchased, it being further arranged that Irene Adams would sell certain real estate for the sum of $5000.00, thus making a total of $12500.00 in cash to be paid to defendant, pursuant to the contract, and defendant would be secured by a second mortgage on the property for the balance of $7500.00, as agreed; that Irene Adams did sell her said property for $5000.00, and thereafter the parties hereto met in the office of the Equitable Building & Loan Association on or about January 16th, 1947, ready to close the transaction and fully perform under their contract, but defendant thereafter refused- to comply with his contract and agreement to accept a second mortgage covering the sum of $7500.00, to be payable at the rate of $200.00 per month, with 6% interest; thus breaching the contract and agreement; that defendant thereafter and subsequent to said breach, proposed a new arrangement with plaintiffs whereby $12500.00 would be paid to him in' cash, and the balance secured by a first mortgage in his favor, well knowing that plaintiffs could not meet such requirements, and plaintiffs could not, and did not, agree to such new proposal.
“4. That by the acts and conduct of defendant, aforesaid, he is estopped to dispute his agreement and contract with plaintiffs.
“5. That on and about January 11th, 1947, the property involved was reasonably worth the sum of $22500.00, and plaintiffs have been damaged in the sum of $2500.00 as the direct and proximate result of defendant’s refusal to perform his said obligations.
“6. That the net income from the property being purchased on January 11th, 1947, and thereafter, was, and is, the sum ■of $1000.00 per month; that plaintiffs were ready, willing and able to comply with their purchase agreements, and take posses.sion of the property on or about January 16th, 1947, and as the direct and proximate result of defendant’s failure to perform his •said obligations they have been damaged in the sum of $1000.00 per month beginning with January 16th, 1947.
“7. That plaintiffs incurred expense of '$25.00 in order to procure the loan from the Equitable Building & Loan Association, and are proximately damaged in said sum “by defendant’s failure and refusal to perform.”

Second Cause of Action

“1. She adopts Paragraphs 1, 2, 3 and 4 of the First Cause of Action, by reference as fully and effectively as if set forth in the second cause of action in full.
“2. That plaintiff, Irene Adams, borrowed the sum of $200.00 from the First National .Bank of Roswell to make the ■escrow payment provided by the contract, and became obligated to pay interest at 8% per annum thereon from January 11th, 1947, to her damage in the sum of $4.00 due to defendant’s failure to perform as aforesaid.
“3. That plaintiff, Irene Adams, in haste and sacrifice, sold property of the reasonable value of $6000.00 for the sum of $5000.00, in order to carry out her contract with defendant, and thereby sustained damages in the sum of $1000.00 as the direct and proximate result of defendant’s refusal to perform as aforesaid; that defendant well knew that she was making such sale in order to raise the funds required by the purchase agreement.”
Exhibit “A” (To Complaint),
Wayne Adams
Real Estate
F arms — Ranches—Homes
Roswell, New Mexico
Escrow Contract
“1. Contract Agreement—

I or we Virgil Adams hereby agree to purchase from P. H. Cox under the terms of this contract the following described property- — -Lighthouse Laundry with all equipment complete together with two city lots 100 x 168 ft.

“2. Down Payment $200.
“3. Total Payment $20000.
“4. Terms $12500. upon completion of abstract title, etc. balance paid at rate of $200. per month until paid in full.
“5. Interest rate 6%
“6. Taxes, Rent Etc. Bills paid up in full upon possession.
“7. Date of Possession Upon approval of abstract title & deed by purchasers.
“8. Real Estate Commission — Sellers agree to pay usual commission from earnest money or money derived from this sale.
“9. Mineral & Water Rights * * *
“10. Remarks * * *
Seller /s/ Perry H. Cox Buyer /s/ Irene Aflatos Buyer /s/ Virgil Aflatos Escrow Agent /s/ Wayne Adams
Buyer /s/ Bill Adams Date Jan. 11, 1947”

The motion to dismiss states the following grounds:

Motion to Dismiss

“(1) That said complaint, together with the exhibit attached thereto, shows on its face that the plaintiffs have not set out facts sufficient to entitle them to any relief as against this defendant.
“(2) That said complaint seeks to set up a breach of a verbal agreement to sell real estate, on which complaint the plaintiffs are entitled to no relief at law.

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Bluebook (online)
191 P.2d 352, 52 N.M. 56, Counsel Stack Legal Research, https://law.counselstack.com/opinion/adams-v-cox-nm-1948.