Arhart v. Thompson

26 N.W.2d 523, 75 N.D. 189, 1947 N.D. LEXIS 58
CourtNorth Dakota Supreme Court
DecidedMarch 28, 1947
DocketFile 7040
StatusPublished
Cited by8 cases

This text of 26 N.W.2d 523 (Arhart v. Thompson) is published on Counsel Stack Legal Research, covering North Dakota Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Arhart v. Thompson, 26 N.W.2d 523, 75 N.D. 189, 1947 N.D. LEXIS 58 (N.D. 1947).

Opinion

BtjeR, J.

This is an action to compel specific performance. The defendants are sisters. In order to avoid confusion we refer to them as Clara and Agnes. Both are experienced business women.

The complaint alleges: Clara is the owner of the property involved; in September 1945 she accepted plaintiff’s oiler to buy the same for $2350 and took his check for $100 given as earnest money; she agreed to deliver a warranty deed conveying the premises upon the payment of the remainder of the $2350; by letter received about October 3, 1945, she advised him she would not sell the premises to him and returned the check to him; he sent it back to her and she again returned it; he tendered the full purchase price; it was refused; that at all times he has been ready and willing to pay the purchase price upon delivery of the deed, but she has refused to execute the deed; about the ninth day of October, 1945, she conveyed the premises to Agnes, but the latter had full knowledge of the agreement between plaintiff and Clara; the conveyance by Clara to Agnes was executed without consideration and with fraudulent intent to deprive plaintiff of his right under the contract; the premises were rented by the defendants in a sum unknown to plaintiff. The plaintiff prays the defendants be required to convey the premises to him free and clear of any encumbrance, upon the payment of $2350 to them, and that he have judgment against the defendants for the rentals since October 1, 1945.

Clara answered denying any contract with the plaintiff although she admits that certain correspondence took place between them. As further defense she alleges inadequacy of price; “that said premises were of a value highly in excess of the con- *192 sideratioxi offered by the Plaintiffthat the contract which the plaintiff demands the defendants, specifically perform is not just and reasonable; that the plaintiff made false and fraudulent representations inducing her to give assent; if consent was given, it was given under the influence of misapprehension and misunderstanding of the property and the terms; if she made an offer to sell the property no contract was fully consummated in this; that the plaintiff, in his acceptance, varied the terms of the offer, thereby constituting the same as a new offer, and not an acceptance; that on January 28,1944, she had made, executed and delivered a warranty deed conveying said property which deed was recorded on October 9, 1945.

The plaintiff replied denying these allegations of the answer except he admits a warranty deed to Agnes was recorded as alleged.

Agnes answered alleging she is .the owner of the property described and denying knowledge of any alleged contract between the plaintiff and her co-defendant.

The trial court found for the plaintiff to the effect that Clara was the owner of the premises in September 1945, subject to a mortgage to the Grand Forks Building and Loan Association; that she sold the property to the plaintiff for $2350 and agreed to deliver a warranty deed; that the plaintiff tendered the full amount as directed and has at all times been ready, willing and able to perform his obligations; that on or about October 10, 1945, Clara conveyed the premises to Agnes; that Agnes at that time had full and complete knowledge of the agreement of Clara to convey the property to the plaintiff; that the consideration for the contract between the plaintiff and Clara was adequate ; that Clara’s assent was not obtained by misrepresentation nor given under the influence of mistake, misapprehension or surprise ; that Agnes was not a good-faith purchaser for value; that her rights were subordinate and subject to the rights of the plaintiff; and that the Building and Loan Association had alien upon the premises amounting to $1279.59.

The trial court concluded: that the plaintiff was entitled to judgment requiring the defendants to execute and deliver to him *193 a good and sufficient conveyance in fee with the usual covenants of warranty upon payment of $1070.41 to defendant as the balance of the purchase price remaining due to Clara after discharging the lien of the Building and Loan Association; that plaintiff was entitled to all of the rentals accruing after September 25, 1945; that if defendants failed to execute and deliver such deed within fifteen days from the date of the notice of entry of judgment the plaintiff may pay the amount due upon the lien and pay to the defendants or their attorneys or into the court for the defendants the sum of $1070.41; upon such payment this judgment shall have the same effect and operation as a warranty deed from the defendants and the plaintiff would be the owner of the premises free of all claims of the defendants or either of them; and that if the plaintiff shall fail within three days to pay the sum due to the defendants and to the mortgagee he “shall be forever barred of his right to specific performance of said contract . . . .”

Judgment was entered accordingly and defendants appeal from the whole of the judgment on questions of law and fact and demand a retrial of the entire case.

For some time prior to 1937 Agnes was engaged in the insurance business in Grand Forks. In 1937 or 1938 she became the owner of the Pioneer Insurance Agency and was such owner at the time of trial.

In 1941 Clara purchased the property involved paying $2400 for it. For several years prior thereto she had been bookkeeper for the Building & Loan Association, connected with its loan business, and in 1942, she obtained a loan of $1600 from the Association giving it a mortgage upon the property. At the time of the negotiations this mortgage was unsatisfied.

On account of her health Clara left Grand Forks in January 1944, and has lived in California ever since. There is nothing in the record to indicate she ever returned to Grand Forks. She did not testify in this case. Agnes remained in Grand Forks.

There are but three main issues to be determined on this appeal. First, was Clara the owner of the premises at the time *194 the negotiations between her and the plaintiff began? Second, if so, did Clara agree to sell the premises to the plaintiff and he agree to pay for the same, so that a contract was consummated? Third, was the agreed price sufficiently adequate so as to justify the court in requiring specific performance?

The first point we consider is whether the record shows Clara was the owner of the property at the time the alleged contract was made. The trial court found that Clara conveyed the premises to Agnes on or about October 10, 1945. The evidence shows Agnes was cognizant of the agreement between Clara and the plaintiff regarding the property before then, even if she did not know all of the terms. Being a defendant herein any right she had could be litigated and declared subordinate to that of the plaintiff.

If this deed to Agnes was executed on January 28, 1944, and delivered to Agnes then, with the intent that the premises were thereafter hers and the title transferred to her, the property became hers and Clara was thereafter a stranger to the title. In that case, Clara, being no longer the owner of the property, the court is without power to order specific performance on her part. See Boyle Holding Corp. v. Medgreen Holding Corp. 154 Misc 189, 276 NYS 670; Baldo v.

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Cite This Page — Counsel Stack

Bluebook (online)
26 N.W.2d 523, 75 N.D. 189, 1947 N.D. LEXIS 58, Counsel Stack Legal Research, https://law.counselstack.com/opinion/arhart-v-thompson-nd-1947.