Arguello v. Edinger

10 Cal. 150, 1858 Cal. LEXIS 202
CourtCalifornia Supreme Court
DecidedJuly 1, 1858
StatusPublished
Cited by20 cases

This text of 10 Cal. 150 (Arguello v. Edinger) is published on Counsel Stack Legal Research, covering California Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Arguello v. Edinger, 10 Cal. 150, 1858 Cal. LEXIS 202 (Cal. 1858).

Opinion

Field, J., delivered the opinion of the Court

Terry, C. J., concurring.

Upon the admission by the demurrer of the contract and acts set forth in the answer, two questions arise : first, whether, under the Statute of Frauds of this State, Courts of Equity possess any [158]*158power to decree a specific performance of a verbal contract for the sale of land in case of part performance; and, second, if they possess the power, whether the acts detailed constitute such part performance as to justify its exercise.

The plaintiffs rely, in support of the demurrer, upon the opinion of this Court in Abell v. Calderwood, (4 Cal., 90.) From the statement of the reporter, it does not appear that there were any acts of part performance alleged in that case to take the verbal contract from the operation of the statute. The opinion, however, goes beyond the facts of the case, and denies in general language the authority of a Court of Equity to decree a specific performance of a verbal contract in any case. So far as the opinion passes out of the facts of the case, it can not be regarded as authority, and we do not feel any embarrassment in departing from its conclusions.

The jurisdiction of Courts of Equity to decree a specific execution of verbal contracts, in certain cases, was asserted very soon after the passage of the English statute of 29 Charles II. That statute was intended as a protection against the perpetration of fraud by the assertion of pretended agreements and attempts to support them by perjury; and Courts of Equity, in enforcing contracts not made in conformity with its provisions, acted not upon any assumed authority to dispense with the statute, but with a view to carry out its true spirit and policy. Thus, where a verbal contract was alleged in the bill, and admitted in the answer, without the defendants’ insisting upon the statute, a specific performance was decreed, upon the obvious grounds that the admission of the contract took the case out of the mischiefs against which the statute was intended to guard; and the failure to insist upon the statute, was a waiver of its protection. (Fonb. Eq. I, ch. 3, § 8; Att. Gen. v. Day, 1 Ves., 221; Gunter v. Halsey. Ambler, 586; Newland on Conts., 201; Spurrier v. Fitzgerald, 6 Ves., 548; Story’s Equity, § 755.) So, where a verbal contract had been so far performed, by one of the parties, relying upon the good faith of the other, that he could have no adequate remedy except by complete performance, Courts of Equity decreed its execution, upon the ground that the refusal to execute the same under such circumstances was a fraud, and that a statute, having for its object the prevention of fraud, could not be used as an instrument for its perpetration. (Fonb. Eq., chap 3, § 8; Foxcroft v. Lester, 2 Vern., 456; Newland on Cont., 181; Morphett v. Jones, 1 Swanst., 181; Story’s Eq., § 759.)

The jurisdiction of Courts of Equity thus early asserted to enforce a specific execution of verbal contracts, notwithstanding the Statute of Frauds, has been uniformly maintained in England ever since, and is now too firmly established to admit of question. And in almost every State of the Union, which has adopted the general provisions of the English statute, the juris[159]*159diction is unquestioned. The statute of this State contains a legislative recognition of its existence, in cases of part performance, when, in the tenth section of the first chapter it provides that “ nothing contained in this chapter shall be construed to abridge the powers of Courts to compel the specific performance of agreements in case of part performance of such agreements.”

It is true that eminent Judges have, at different times, questioned the wisdom of allowing exceptions to the statute, and have declared their intention not to extend them beyond the established precedents; but none have gone so far as to deny the power of a Court of Equity to grant relief in a clear case where the refusal to complete the contract would operate as a fraud upon the purchaser. 'The statute of this State is almost literally copied from the statute of Hew York, and in that State the equity powers of the Court are on few subjects more frequently exorcised than in the enforcement of the specific execution of verbal contracts for the sale of land in cases of part performance.

What acts shall be deemed a part performance, is a matter upon which there has been much discussion, and some conflict of opinion. The true rule, gathered from the adjudged cases is, that nothing can be regarded as a part performance, to take the case out of the operation of the statute, which docs not place the party in a situation which is a fraud upon him, unless the contract be executed. Taking possession, is held such act of part performance, as the party might be treated as a trespasser if he could not invoke the protection of the contract. And if, upon the faith of the contract, the purchaser should proceed to make valuable improvements, the most palpable fraud would be perpetrated if the vendor were permitted to withdraw from its execution. (Clinan v. Cooke, 1 Sch. & Lef., 41; Parkhurst v. Van Cortlandt, 1 Johns. Ch., 284; Lowry v. Tew, 3 Barb. Ch., 413; Story’s Equity, 761.)

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Bluebook (online)
10 Cal. 150, 1858 Cal. LEXIS 202, Counsel Stack Legal Research, https://law.counselstack.com/opinion/arguello-v-edinger-cal-1858.