Beck v. Staats

114 N.W. 633, 80 Neb. 482, 1908 Neb. LEXIS 20
Nebraska Supreme Court·Decided January 8, 1908·No. No. 14,972·Published·Cited by 14 cases

Opinion

Epperson, C.

In July, 1905, the parties hereto entered into a written contract wherein the defendant agreed to convey to plaintiff 80 acres of land in Saunders county on the 1st day of March, 1906. Plaintiff paid $100 in cash and agreed to assume $2,000 of an incumbrance and to pay a remainder of $2,460 upon maturity of the contract. When the contract was made, defendant owned but an undivided one-half interest in the land in controversy. He and one Harmon owned in equal shares this land and 80 acres adjoining it. In February, 1906, defendant sold and conveyed all of his interest in the land to Harmon. This action was brought to recover damages for the loss of plaintiff’s bargain. She obtained judgment in the court below for $1,105.90, and defendant appeals.

Defendant contends that before the contract was executed he had his co-owner’s verbal promise to convey his interest to defendant; that the contract was made upon the condition that Harmon would convey, but thereafter he re[484] fused, though defendant in good faith importuned him so to do. Evidence was introduced in support of this contention. In conflict therewith, plaintiff’s evidence is to the effect that defendant represented to her that he had procured Harmon’s interest in the land. It is the defendant’s theory that the rule for the recovery of damages against a vendor acting in good faith is that nominal damages only may he recovered, together with the amount deposited, with interest. He aslted for and was refused an instruction submitting this theory to the jury. We are met at the threshold of this investigation with a conflict in the decisions of this court. In Reed v. Beardsley, 6 Neb. 493, it was held: “On an agreement to exchange lands, if one of the parties performs the contract on his part by conveying, and the other neglects to do so, and finally puts it out of his power to perform, the true measure of damages is the value of the property conveyed.” The measure of damages there was the value of the consideration given by the vendee, and not the value of the property he contracted to purchase. To the same effect is McPherson v. Wiswell, 19 Neb. 117. And in Eaton v. Redick, 1 Neb. 305, the vendee, upon rescission by his vendor, was permitted to recover the amount advanced by him upon the purchase price, although himself in default. These cases have never been expressly overruled; but, in view of the decisions following the contrary rule, they cannot be said to establish the law in this jurisdiction. In Wasson v. Palmer, 13 Neb. 376, it was Said: “The proper measure of damages was the difference between the contract price and the actual value of the property at the time the contract was broken.” There the question of good faith on the part of the grantor was no part of the case and was not considered by the court. The same rule prevailed in Carver v. Taylor, 35 Neb. 429; Seaver v. Hall, 50 Neb. 878; Nolde v. Gray, 73 Neb. 373. In Seaver v. Hall, supra, after reviewing the former decisions of this court, it is said by Mr. Commissioner Irvine: “It would appear that this court has thereby placed itself on both sides of the much [485] disputed question as to whether, when the vendor cannot make title, only nominal damages can he recovered, or whether the vendee is entitled to the benefit of his bargain. Some cases hold that the former rule applies where the vendor acted in good faith (Conger v. Weaver, 20 N. Y. 140), and that the latter applies when the vendor was guilty of fraud (Pumpelly v. Phelps, 40 N. Y. 59). * * * It may well be doubted, however, whether, in a state where exemplary damages are not permitted, the measure of recovery should depend on the good faith of the vendor. The object of the hiw is to afford compensation, and not to punish, in civil cases, and the actual damage is the same regardless of the motive of the vendor.” In Violet v. Rose, 39 Neb. 661, it was held that a vendee Avas entitled to recover damages caused by delay of his vendor in making the conveyance, and the measure of damages was the difference bctAveen the value of the property when it should have been conveyed and its value at the time of the delayed conveyance. For a wilful refusal to convey, a vendor, in McMurtry v. Blake, 45 Neb. 213, was held liable to the full extent of his vendee’s lost opportunity .to sell to advantage.

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Beck v. Staats, 114 N.W. 633, 80 Neb. 482, 1908 Neb. LEXIS 20 (Neb. 1908).

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