Brady Et Ux v. Ray

355 P.2d 258, 353 P.2d 554, 223 Or. 613, 1960 Ore. LEXIS 525
CourtOregon Supreme Court
DecidedJune 22, 1960
StatusPublished
Cited by4 cases

This text of 355 P.2d 258 (Brady Et Ux v. Ray) is published on Counsel Stack Legal Research, covering Oregon Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Brady Et Ux v. Ray, 355 P.2d 258, 353 P.2d 554, 223 Or. 613, 1960 Ore. LEXIS 525 (Or. 1960).

Opinions

HOLMAN, J.

(Pro Tempore)

On or about September 15, 1957, plaintiffs Brady and defendants Ray and Zimmerdahl entered into an oral contract for plaintiffs to sell and defendants to buy certain timber on land owned by plaintiffs. The purchase price was $15,000, one quarter of which, $8,750, was paid at the time the oral agreement was made, and the balance was to be paid within a year in quarterly installments. Defendants had three years in which to cut the timber. The land on which the timber stood was landlocked by the holdings of the International Paper Co. The parties contemplated plaintiffs would deed the fee in the land to International, subject to defendants’ right to cut the timber. In return therefor plaintiffs would receive a right of way for defendants across International’s land for the purpose of allowing defendants access to set up a mill in the timber they were purchasing. This, right of way was to be furnished by plaintiffs to defendants. Lest there be any misunderstanding as to who was to furnish the right of way and because it is important, we will quote from plaintiff Dane Brady’s testimony.

“A Now he says that I have changed that around. Now when I was out there just before November I told him and Mr. Zimmerdahl that I [615]*615■would—to simplify matters that I would deed the property to them and they go and get their own right of way; we would have our contract made up and I would deed the property to them and they go and get their own right of way since Mr. Ray knew that the right of way could be obtained. And Mr. Ray said, ‘No, I would just as soon you let it go just like it is, like we agreed on; that’s the way we’ll have it.’
“Q Did you agree to that, then?
“A Yes. If that’s the way he wanted it.
“Q So you still had the same agreement; is that correct?
“A The same agreement as it originally was.”

The parties further agreed that they would go to a scrivener and have the contract reduced to writing. Thereafter the defendant Ray went to International to inquire about the right of way and found that one was available but was told that International wanted to deal directly with the plaintiffs concerning it. Several times plaintiffs suggested to defendants that they go have the contract drawn, and defendants did not refuse but presented reasons why it was not convenient for them to go at that particular time.

In January, 1958, plaintiff Dane Brady went to a lawyer and had a contract drawn for the parties’ signatures. The only parts thereof concerning defendants’ right to enter the property are as follows:

“The Seller does hereby agree to sell and the Purchaser does hereby agree to purchase all the timber now lying, standing or being upon the following described real property, situate in Tillamook County, Oregon, to-wit:
“SE^4 of the SW14 Section 5, Township 3 North Range 6 West, Will. Mer., Tillamook County, Oregon
together with the right to enter upon said land [616]*616and cut and remove therefrom all of said timber at any time within three (3) years from date hereof.
(( & * # # #
“It is further understood and agreed that this agreement is made subject to the terms and provisions of that certain agreement made and entered into between the International Paper Company and the seller, .wherein the title to said real property will be transferred to said International Paper Company, subject to the rights of the purchaser herein to cut and remove said timber, as herein provided.”

The defendants refused to sign the contract because they claimed they wanted to make other arrangements for payment and because the contract did not provide for any right of way over International’s land. Defendants then asked for the return of their money and said they wanted to call the whole thing off.

Plaintiffs immediately, on January 27, 1958, brought this suit for specific performance of the agreement. Defendants counter-claimed for the $3,750 down payment. The defendants contended the contract was unenforceable because of the statute of frauds. The plaintiffs contended the defendants could not take advantage of the bar of the statute of frauds and at the same time ask for their money back. The trial court sustained both the contentions and denied both parties relief. The defendants appeal from the court’s denial of a decree for the return of the money. Plaintiffs did not appeal.

The law is not seriously in dispute. It is set f orth in 49 Am Jur 868, Statute of Frauds § 563, as follows:

“3. Recovery of Payments Advanced
“The determining factor in an action by the purchaser under an unenforceable oral contract for [617]*617the sale of land for the recovery of purchase money paid under that contract is at whose door lies the cause for the failure to carry out the contract. While, as a general rule, if the vendor is ready, willing, and able to carry out the contract on his part, the vendee cannot by repudiating the contract recover purchase money which he has advanced, it is settled practically without dispute that the purchaser of land or an interest therein under a contract which does not satisfy the statute of frauds may recover, as upon an implied promise, the amount which he has paid as a deposit, or upon the purchase price, where the vendor, without fault on the part of the vendee, is unable or refuses to perform the contract by conveying such title or interest as the contract calls for.”

Oregon cases on the point are Helgeson v. Northwestern Trust Co., 103 Or 1, 203 P 586, and Lanham v. Reiman, 177 Or 193, 160 P2d 318.

It is clear that if the plaintiffs were both willing and able to perform the oral contract, defendants cannot recover their down payment. However, at no time, at the proffering of the written contract or at the time of trial, was a right of way in existence. Plaintiff Dane Brady testified as follows:

“Q Now the last negotiations you had, as I understand it, was that meeting in January there at the mill site, as far as the sale of the timber was concerned.
“A Yes.
“Q That was the last effort to consummate the oral agreement?
“A Yes.
“Q Now at that time, Mr. Brady, was there in existence a written right of way agreement providing a means of access to and egress from that timber for Ray and Zimmerdahl?
“A No. There was no written agreement other than just Mr. Anderson’s word and mine.
[618]*618“Q Has any written agreement ever been prepared from International Paper or from you and Mrs. Brady, either one, to Bay and Zimmerdahl providing them with the means of access to or egress from that 40 acre tract of timber?
“A Haven’t prepared anything to Ray and Zimmerdahl.
• v w w w
“Q Mr.

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Brady Et Ux v. Ray
355 P.2d 258 (Oregon Supreme Court, 1960)

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Bluebook (online)
355 P.2d 258, 353 P.2d 554, 223 Or. 613, 1960 Ore. LEXIS 525, Counsel Stack Legal Research, https://law.counselstack.com/opinion/brady-et-ux-v-ray-or-1960.