Boone v. Perrigo

185 N.W. 708, 217 Mich. 47, 1921 Mich. LEXIS 818
CourtMichigan Supreme Court
DecidedDecember 21, 1921
DocketDocket No. 16
StatusPublished
Cited by1 cases

This text of 185 N.W. 708 (Boone v. Perrigo) is published on Counsel Stack Legal Research, covering Michigan Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Boone v. Perrigo, 185 N.W. 708, 217 Mich. 47, 1921 Mich. LEXIS 818 (Mich. 1921).

Opinion

Steere, C. J.

This litigation arose in connection with the erection of a house by defendants Perrigo on a lot in Highland Park, to which they held title under a warranty deed from V. C. Fry and wife dated May 9, 1917. Contemporaneous with their construction of this house they became swamped with indebtedness and various creditors took steps to collect their claims by proceeding against the property. The instant case was commenced by plaintiff Boone to foreclose a lien for material furnished, and apparently various interested parties by reason of claims against the property were made defendants. He was granted a decree of foreclosure of his lien amounting to $963.69, which is not here contested, and the decree rendered by the court states that other liens against the property were vacated under the statute by defendant Ternes Coal & Lumber Company filing a proper bond. Cross-plaintiff Acme Lumber Company filed a cross-[49]*49bill against cross-defendant Ternes Coal & Lumber Company, asking relief under a contract between themselves relating to this property, which was dismissed by the court'and the Acme Lumber Company has appealed from that portion of the decree. These two corporations are the only parties interested in this appeal and are respectively referred to in briefs of counsel as plaintiff and defendant.

It is shown that prior to May 26, 1917, one Peter Patterson held a mortgage upon the property in the sum of $8,100 with accumulated interest, there were various claims against it for labor and materials and the Perrigos were also indebted to defendant Ternes Coal & Lumber Company in excess of $2,600' for materials previously furnished them. Upon that date they executed and delivered to the Ternes Company a warranty deed of the premises for a variously stated price between $7,200 and $7,850 including Patterson’s mortgage. On July 30, 1917, the Acme Company levied an attachment upon the property in an action at law brought against the Perrigos to recover the amount of an indebtedness of $1,006.18 for material claimed by it. An attempt was made by the Perrigos to sell the property for $9,000 or thereabouts by arrangement with the Ternes Company, in which they were unsuccessful, and on September 10, 1917, the Ternes Company sold the same under contract to parties named Curtiss for $7,950. Thereafter various proceedings were had which resulted, on February 7, 1918, in a contract between plaintiff and defendant providing, so far as material here, as follows:

“In consideration of the sum of one (1) dollar and other valuable considerations, paid by the Acme Lumber Company * * * to the Ternes Coal & Lumber Company * * * to apply on the purchase price of the land contract, in which Francis C. S. Curtiss (and others) * * * agree to purchase [50]*50from the Ternes Coal & Lumber Company, for the sum of seventy-nine hundred fifty ($7,950) dollars, said premises being described as follows: (Description of premises.)
“Ternes Coal & Lumber Company agrees to sell and the Acme Lumber Company agrees to purchase the above described land contract for the sum of seventy-five hundred sixty-six dollars, six cents ($7,566.06) on the following terms and conditions: Twenty-six hundred fifty (2,650) dollars in cash to be derived from payments to be made by the vendees; thirty-seven hundred (3,700) dollars by the Acme Lumber Company assuming the first mortgage now held by Peter Patterson or the Investment Mortgage Company or their assigns; eight hundred twenty-six dollars, three cents (826.03) by the Acme Lumber Company assuming lien number 17,299, claimed by William F. (H) Boone; two hundred forty-two dollars, three cents (242.03) by the Acme Lumber Company assuming lien number 17,016 claimed by the McDonald Coal & Brick Company and one hundred forty-eight (148) dollars by the Acme Lumber Company assuming lien number 17,455 claimed by William E. Brady Company.
“The said Acme Lumber Company hereby agrees to settle all lien claims or to secure the said Temes Coal & Lumber Company from any obligation to pay said liens by furnishing á bond or otherwise within fifteen days from date of contract.
“Ternes Coal & Lumber Company agrees to execute a warranty deed to the above described premises subject to the encumbrances above described upon the payment due it from the proceeds of the down payment to be made on the said land contract as above written.
“Ternes Coal & Lumber Company further agrees to pay the commission due the Lambracht Kelly Company for making the sale of such property to Francis C. S. Curtiss (and others). Any and all taxes now due upon the premises are to be paid by the Ternes Coal & Lumber Company or by the vendees.”

On August 9, 1917, plaintiff’s attachment on the property, of July 30, 1917, in the action against the [51]*51Perrigos was released. Its amended cross-bill against defendant on which the parties went to hearing asked specific performance of this contract of February 7, 1918, now admitted to have been a mistaken remedy as defendant had long before the bill was filed conveyed the property subject to Patterson’s mortgage to the Curtisses on their payment of the balance in full to it pursuant to the terms of their land contract of September 10, 1917. Upon the hearing plaintiff was permitted to file a further amended cross-bill “to conform to the proofs” as was claimed, alleging that by reason of its wrongfully breaching said contract defendant was liable to plaintiff “for such compensatory damages as it might suffer and sustain by reason of the aforesaid breach,” and an accounting was asked with prayer that plaintiff be decreed such sum as the same disclosed its due out of money received by defendant from sale of the property.

Claiming plaintiff first breached and then abandoned the contract defendant denied liability and asked dismissal of plaintiff’s cross-bill,' which was granted. The principal litigated question upon the facts was which party, if either, first breached the contract. By it plaintiff was obligated to settle all lien claims against the property or secure defendant from any obligation to pay them by a bond or otherwise within 15 days. Contemporaneous with the contract it gave defendant its bond with certain of its stockholders as sureties for $2,000 to settle all liens, or furnish defendant within 15 days a satisfactory bond to protect it “from any obligation to pay said liens.” Plaintiff then attempted to secure discharge of the liens on the property, as provided by statute, by filing with the county clerk bonds signed by its president and secretary as sureties. But its yard was then incumbered by mortgage and the officers proposed as sureties were unable to qualify as owners of real estate, resulting in [52]*52the bonds being rejected by the county clerk upon objection of the several lien claimants. A second mortgage for $2,000 on plaintiff’s yard was then given defendant, which does not appear in the record but as quoted from by plaintiff’s counsel was “according to the terms of a certain bond.” In explanation of that transaction plaintiff’s secretary testified that after attempting unsuccessfully “to bond off these liens” he went to defendant’s treasurer, Mr. Ternes, and explained the circumstances in reply to which—

—“he said, ‘we will accept a surety bond’ and I agreed to give him mortgage to protect him; we did give him a mortgage. I delivered this mortgage to William B. Ternes.

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Cite This Page — Counsel Stack

Bluebook (online)
185 N.W. 708, 217 Mich. 47, 1921 Mich. LEXIS 818, Counsel Stack Legal Research, https://law.counselstack.com/opinion/boone-v-perrigo-mich-1921.