Block v. Donovan

99 N.W. 72, 13 N.D. 1, 1903 N.D. LEXIS 74
CourtNorth Dakota Supreme Court
DecidedJuly 1, 1903
StatusPublished
Cited by3 cases

This text of 99 N.W. 72 (Block v. Donovan) 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
Block v. Donovan, 99 N.W. 72, 13 N.D. 1, 1903 N.D. LEXIS 74 (N.D. 1903).

Opinions

Morgan, J.

This is an action brought for the specific performance of a contract, or for a cancellation of the contract if specific performance shall fail. The facts out of which the action arose are as follows: On February 19, 1901, the plaintiff and his wife conveyed to the defendant their homestead. The price agreed on for the land was $1,500. There were mortgages and liens and taxes due and to become due against this land aggregating $1,597.95. The evidence of the two parties to the sale is conflicting as to how this price of $1,500 was to be paid. The plaintiff testifies that the defendant was to pay some of his outstanding debts so far as due, and return him the notes. These debts amounted in all to the said sum of $1,597.95. This sum included a note to Allert & Winter for $99.75, and plaintiff testifies that this note and a mortgage securing a part of said sum were to be paid by defendant and returned to him. The plaintiff further testifies that he was to pay to the defendant the sum of $97.95, being the excess of the total indebtedness over the $1,500, the price of the land, as agreed on. The Citizens’ Bank of Langdon held a note secured by a mortgage on this land and a chattel mortgage for $220, and one McPhail had a note and mortgage against him. These two notes were to be paid by the defendant, and such payment credited as part of the price of the land. After the deed was delivered to the defendant, he refused to pay the Allert & Winter note and mortgage, claiming that he had not agreed to do so unless compelled to do so as a matter of law; and that he could not be compelled to pay it, as this mortgage was not a lien on the land as to subsequent purchasers. His claim was that this mortgage was not acknowledged properly, and therefore was not a valid mortgage [4]*4so far as his deed was concerned, as its record was not notice to him. Upon the failure of the defendant to pay this note, partly secured by mortgage, plaintiff paid it himself by some arrangement with Allert & Winter, and tendered the note and mortgage, duly satisfied, to the defendant, and demanded a compliance with his contract to return the other notes as agreed on. The defendant refused to turn over the notes unless he was paid $97.95 in cash. Defendant’s contention is that the payment -to him of the sum of $97.95 in money was a condition precedent to the turning over of these notes to the plaintiff, and, said sum not having been paid to him at all, no duty on his part has arisen to turn them over. Plaintiff testifies that no time was ever specified during which he was to pay the $97.95; that the Allert & Winter mortgage was to' be immediately turned over to him the same as the bank and McPhail notes and all the others, except the $800 mortgage on the land, which was not yet due. The object of the plaintiff in selling the land on such terms was to secure a release of the bank mortgage and of the McPhail mortgage and the two1 mortgages on his personal property. He desired the release of this personal property from these mortgages so that he could raise money to pay other debts and obligations by mortgaging the property again. As corroborating his contention that he was not to deliver these notes and mortgages to plaintiff until he was paid the $97.95, the defendant relies on the following writing, known in the record as “Exhibit 1,” viz.: “On payment to me of ninety-seven dollars and ninety-five cents by Ezra Block for a deed to me to southeast quarter section 8, township 161, range 60, given by Ezra and Nellie Block for one dollar, I agree to return to said Block a note for $220 to the Citizens’ State Bank, a note of $164 to J. McPhail, a note of $100 to Mahon & Robinson and a note of $15 to Mahon & Robinson, and a note to Liebeler & Timerty for $85; excepting costs incurred. [SignedJ E. I. Donovan.” What was said and done when the above memorandum was drawn and given to the plaintiff is a matter of dispute between the parties. The plaintiff says it was not given him until after the deed was signed by him, and after the terms of the agreement had been fully settled. He says that he told the defendant that he wanted a guaranty from him that he would settle the notes, and in response to such request he received Exhibit 1; that he did not [5]*5read it at the time, and did not observe that it omitted mention of the A'llert & Winter note; that he endeavored to have it corrected before his wife signed the deed, but failed to reach home in time. The defendant says that this writing expresses the agreement as entered into by them, and that it was thoroughly and carefully examined by plaintiff before he signed the deed.

From the testimony of these two parties we are called upon to decide what agreement the parties entered into when the deed was executed. If effect is to be given to Exhibit 1, then the payment of $97.95 was a condition precedent to the return of the notes mentioned. But we are forced to the conclusion that Exhibit 1 was no part of the agreement as entered into by the parties. The deed had been signed by plaintiff and delivered to Donovan before this writing was called for and drawn. True, the deed had not been acknowledged by plaintiff or his wife, but all the details of the transaction had been fully agreed upon. But the deed had been acknowledged by plaintiff before he discovered that Exhibit 1 did not correctly recite what the agreement was. By this writing it was attempted to incorporate into the contract matters that had not been mentioned in the conversation which culminated in the signing of the deed, and matters that were directly opposed to the terms of the contract as agreed upon before. The matter of costs, the omission of the Allert & Winter mortgage from the agreement, and that the $97.95 was to be paid as a condition precedent, were not in accordance with the previous conversations. Great stress is laid upon the fact that Exhibit 1 was taken and kept by Block, and that he thereby acquiesced in its terms. It was accepted by him believing that it contained a memorandum that Donovan was to pay these debts, and return the evidence thereof to him. As soon as he discovered that it did not correctly recite the agreement, he endeavored, without success, ho have it corrected. The consideration for the deed was that plaintiff was to clear up his indebtedness to the extent named. He was selling his land without receiving any cash therefor, and for no other consideration save that of wiping out that much of his indebtedness and clearing his personal property of the chattel mortgages thereon. The defendant admits that the Allert & Winter note and mortgage was included in the total indebtedness of $1,597.95, and was considered by the plaintiff as a valid lien on the land, but was not so considered by [6]*6himself. By leaving this mortgage out of Exhibit 1, he wished to be allowed to test the validity of the mortgage, and at the same time compel Block to pay the amount of it in cash to- him before the agreement became binding at all. This was not the agreement. Exhibit 1 never became effective as a part of their contract. Block never consented to it, and Donovan was promptly advised that it was not in accordance with -the agreement, and he was not in any way injured or prejudiced by its retention by Block. It is plain from the evidence that Block never acquiesced in the terms of Exhibit 1. By it he must raise $97.95 before his property was cleared of chattel mortgages. He had no way of doing so- if these mortgages were not satisfied. His personal property was all mortgaged, and foreclosures were about to be begun.

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Related

Donovan v. Dickson
164 N.W. 27 (North Dakota Supreme Court, 1917)
Donovan v. Block
117 N.W. 527 (North Dakota Supreme Court, 1908)
Block v. Donovan
99 N.W. 72 (North Dakota Supreme Court, 1903)

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Bluebook (online)
99 N.W. 72, 13 N.D. 1, 1903 N.D. LEXIS 74, Counsel Stack Legal Research, https://law.counselstack.com/opinion/block-v-donovan-nd-1903.