Barber Pure Milk Co. v. Goldin

218 So. 2d 409, 1969 Miss. LEXIS 1596
CourtMississippi Supreme Court
DecidedJanuary 13, 1969
DocketNo. 45157
StatusPublished
Cited by2 cases

This text of 218 So. 2d 409 (Barber Pure Milk Co. v. Goldin) is published on Counsel Stack Legal Research, covering Mississippi Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Barber Pure Milk Co. v. Goldin, 218 So. 2d 409, 1969 Miss. LEXIS 1596 (Mich. 1969).

Opinion

INZER, Justice:

This is an appeal by Barber Pure Milk Company from a decree of the Chancery Court of Harrison County which dismissed its bill of complaint seeking the recision of a contract for the purchase of certain real estate. We reverse and enter judgment here for appellant.

[410]*410On November 21, 1966, appellant entered into a contract with appellees, Jack Goldin and Agur Realty Co., Inc., for the purchase of certain real estate in Gulfport, Mississippi for a purchase price of $74,000. The Agur Realty Company was designated in the agreement as the agent of Jack Goldin, the owner of the land. The contract contains the following pertinent clauses:

(6) TITLE: The Seller is to furnish Warranty Deed and certificate of title from attorney or an abstract down to date. Reasonable time shall be allowed for examination of title. Should examination of title reveal defects which can be cured, the Seller hereby obligates himself (themselves) to cure same as expeditiously as possible, and to execute and tender Warranty Deed in accordance with the terms thereof.
(7) The Purchaser hereby represents that he has personally inspected and examined the above mentioned premises and all the improvements thereon and is satisfied therewith. The Purchaser further represents that no verbal or written representation or statement of any kind or nature except as set forth in his contract has been made to him (or her). * * *
(9) DEPOSIT: The Purchaser has deposited with AGUR REALTY CO., INC. $5,000, as earnest money. If the title is merchantable, this deposit is to apply on the cash payment. If the title is not merchantable and cannot be made merchantable within a reasonable time, the Seller is to return the earnest money to the Purchaser. In the event title is found to be merchantable and the Purchaser fails to carry out and perform the terms of this agreement, the earnest money paid herewith shall be retained as damages and the earnest money shall be divided equally between the Seller and the Broker, provided however that the Broker’s portion of the amount so held as damages shall not exceed the commission he is entitled to under this contract, and provided further that nothing herein shall be construed to limit the right of either party to enforce the specific performance of this contract. Owners of properties sold or exchanged under this contract agree to pay (TO BE AGREED ON) commission to AGUR REALTY CO., INC., based on the purchase price as shown in paragraph two at closing of the sale.
(11) SPECIAL PROVISIONS: Any visible or invisible easements shall have to be approved by the purchasers. It is understood that this property is presently zoned Commercial and can be used as a milk processing plant which will comply with the Mississippi Board of Health requirements. All Utilities available except Sewerage.

Pursuant to this contract $5,000 was paid by appellant to Agur Realty Co., Inc. in escrow for Jack Goldin.

No problem arose as to the amount, location or description of the land in question. However, upon examination of the tendered title it was found to be subject to six restrictive covenants, three of which are pertinent in this case and are set out as follows:

(3) The said premises may be used for any commercial, mercantile, or manufacturing purposes.
(4) No obnoxious or offensive trade shall be carried on upon any lot, nor shall anything be done thereon which may be or become an annoyance or nuisance to the neighborhood. * * *
(6) If the grantees hereto, or any of them, or their heirs or assigns, shall violate any of the covenants herein, it shall be lawful for grantors, their heirs and assigns to prosecute any proceedings at law or in equity [411]*411against the person or persons violating or attempting to violate any such covenant and either to prevent him or them from so doing or to recover damages or other dues for such violation.

A brief, unsuccessful effort was made to get the adjoining landowners holding rights under the restrictive covenants to amend or waive them. After this failed, the appellant refused the tender of title and made a demand for return of the earnest money on the basis that the title was unmerchantable for the purpose of constructing a milk processing plant, the known purpose for the transaction.

The earnest money was not returned so the appellant filed a bill of complaint seeking recision of the contract and return of the earnest money. In its bill of complaint the complainant alleged that it had been informed by an adjoining landowner that if it were to erect a milk processing plant appellant would be sued for damages and/or an injunction under the terms and provisions of the restrictive covenants running with the land. Appellant alleged further that there was a good probability that the adjoining landowners might be successful in such a suit. The appellees answered and admitted the restrictive covenants but denied the tile was unmerchantable or that the appellant had a right for the return of the earnest money. They also filed a cross-bill seeking specific performance of the contract or, in the alternative, a judgment granting them damages in the amount of the earnest money.

The first witness called for appellant at the trial was the attorney of one of the adjoining landowners who was a developer of residential subdivisions and had built approximately six hundred homes southeasterly and southwesterly of the property in question. The attorney stated that he had advised his client against any waiver or amendment to the existing restrictions running with the land. On cross examination appellee’s attorney received the following replies to the general line of questioning about possibilities of suit.

Q. If a milk processing plant were to be erected and maintained on the property in litigation here, which plant would comply with the Mississippi State Board of Health requirements for sanitation purposes, is it your intention to advise your client in this case, who is the adjoining land owner, to enter suit either for damages and/or injunction?
A. Let me put it this way, I don’t know what the Board of Health requirements are, and whether they were met, frankly, or not met, wouldn’t be the determining factor in any advice that I would give to my clients. Now, my clients at the present time have no intention — there is no question at the moment, but if there were milk solids that went in an open ditch that created smells and flies, we would have to enforce them, and I will point this out, something else, milk distributing plants have a lot of trucks and moving equipment that do go early in the morning, you know, and if they created noise and trouble, that could cause some more possibilities. I am not trying to say * * * but that’s just the things that, frankly, I considered.
Q. Well, Mr. Guice, is it safe to say that your objections would be not so much as to the maintenance or construction of such a plant if it were properly run, but as to the way it could conceivably be run and operated? Would that be a fair statement?
A. I really believe that could be a fair statement. I did not want to be in a position of waiving any of our rights in the event that noise was created or some noxious condition created by the milk solids.

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Cite This Page — Counsel Stack

Bluebook (online)
218 So. 2d 409, 1969 Miss. LEXIS 1596, Counsel Stack Legal Research, https://law.counselstack.com/opinion/barber-pure-milk-co-v-goldin-miss-1969.