Buena Vista Co. v. McCandlish

23 S.E. 781, 92 Va. 297, 1895 Va. LEXIS 116
CourtSupreme Court of Virginia
DecidedNovember 21, 1895
StatusPublished
Cited by14 cases

This text of 23 S.E. 781 (Buena Vista Co. v. McCandlish) is published on Counsel Stack Legal Research, covering Supreme Court of Virginia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Buena Vista Co. v. McCandlish, 23 S.E. 781, 92 Va. 297, 1895 Va. LEXIS 116 (Va. 1895).

Opinion

Harrison, J.,

delivered the opinion of the court.

The Buena Yista Company sold to McCandlish & Clowes fourteen acres of land at Buena Yista, and a hotel then in process of erection upon said land, for the sum of $125,000, of which $5,000 was paid in cash, $20,000 to be paid when the hotel was completed, and the residue to he paid in four equal annual instalments. The contract of sale, which was in writing, and signed by the Buena Yista Company, but not by McCandlish & Clowes, provided that the hotel should be completed according to certain plans and specifications, which were made part of the contract. The sixth clause of the contract is as follows :

“ It is further covenanted and agreed that should the parties of the second part, or their assigns, fail to pay said sum of twenty thousand dollars on the 1st day of May, 1891, or thereafter, upon the completion of said hotel building as herein-before provided, then their rights under and by reason of this [301]*301contract, and those of any one to whom they may assign, shall cease and terminate, and the sum of five thousand dollars already paid to said party of the first part shall be retained and appropriated by said party of the first part as and for the consideration and for the price of the option herein given, and there shall be no liabilities of any sort on either party hereto by reason of anything contained in this contract.”

This contract of sale was in the nature of an option. When the hotel was completed according to the terms of the contract, the plaintiffs then had the right to affirm and finally close their purchase by paying the further sum of §20,000, or to abandon the contract and lose the §5,000 already paid; but before they could exercise this option, the hotel was to be built according to certain plans and specifications.

The hotel was completed about July 1, 1891, but the purchasers refused to accept it, or to carry out the contract, for the reason, as alleged, that it was not completed in accordance with the plans and specifications which were made part of the contract; and demanded that the company should remedy the defects, and make the building conform substantially to the contract specifications. This the company refused to do, and the purchasers, treating the contract as rescinded, instituted this action in assumpsit to recover of the company the sum of §5,000, which had been paid in cash to it.

The declaration contains two counts—the first, the common count in assumpsit for money had and received, and the second, a special count, setting forth substantially the contract between the parties, and averring that the hotel building, to be .completed according to the plans and specifications as contracted for, was the main inducement to the purchase ; that said hotel had never been so completed ; that the defendant company had wilfully neglected and positively refused to complete it; that the plaintiffs had often and in various ways, [302]*302by written notice and otherwise, called the attention of the defendant to its numerous and serious failures to comply with the contract and build the hotel according to the plans and specifications agreed upon ; that the forfeiture of the $5,000 by the plaintiffs was made to depend on the condition precedent that the defendant company would complete the hotel according to the contract, which condition the defendant company had on its part wholly failed to keep and perform. They further aver that they have been greatly damaged by reason of the failure of the defendants to perform their contract, and that they are entitled to recover back the $5,000 paid by them as a cash payment.

These are substantially the averments of the special count. To each of these counts there was a general demurrer, which was overruled. This action of the Circuit Court, it is earnestly contended, was erroneous, in that the plaintiff was allowed to maintain an action in assumpsit to recover back the money paid under the contract in this case.

In Johnson's Ex'or v. Jennings's Adm'r, 10 Gratt. 1, 4, Judge Mon cure says: “There can be no doubt but that if money be paid on a contract of sale which is wholly rescinded, either by mutual consent of the parties, or by virtue of a clause therein, or the consideration of which wholly fails, the party making such payment, if he has been guilty of no fraud or illegal conduct in the transaction, may recover back the money under the common count for money had and received. And though that is the usual and better mode of counting in such cases, there can be no legal objection to a special count, properly setting out the facts from which the cause of action arises. But it must appear with sufficient certainty, from the facts so set out, or from apt averments made in -the count, that the consideration has wholly failed, and that such failure did not proceed from any fraud or illegal conduct on the part of the plaintiff.” Testing the declaration in this case by the [303]*303foregoing clear and sound statement of the law, we have no difficulty in reaching the conclusion that the demurrer was properly overruled. The plaintiffs stated a case in their declaration which entitled them to a standing in court, and gave them the right to be heard, for, if the averments in their declaration should on the hearing prove to be true, they would be entitled to recover. If those averments should not be supported on the trial by sufficient evidence to justify the action in this form, then the defendant could, by a pi-oper instruction from the court covering this point, be protected against any injury resulting from the improper form of action.

The first bill of exceptions is to the court’s action in allowing the contract to be introduced as evidence before the jury, it being contended that because the contract was under seal it could n'ot be relied on to support an assumpsit, and for the further reason that it was not signed by McOandlish & Clowes, the plaintiffs.

The contract was not introduced to support the form of action, but as evidence to prove the plaintiffs’ case. It showed that the $5,000 sued for had been paid by the plaintiffs to the defendant, and receipted for in the body of the contract. It was necessary evidence in the case to show the terms and conditions upon which the $5,000 was paid, and it was necessary to show by the written contract what the agreement between the parties was, so that the jury could determine whether the defendants had, as alleged, so broken the contract on their part as to entitle the plaintiffs to treat it as rescinded. Nor was it any objection to the introduction of the contract that it had not been signed by the plaintiffs. It had been duly executed by the defendant company, and delivered to the plaintiffs, and it is not denied that it evidenced the true understanding and agreement of the parties in every particular.

The second and third bills of exceptions are to the action of the court in giving four instructions, and refusing others asked for by the defendant.

[304]*304The instructions given are as follows: “ The changes and deviations from said specifications in the construction and equipment of said hotel building, which would entitle the plaintiffs to refuse to accept it, need not have affected the value or utility of the building, or of the part changed.

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Bluebook (online)
23 S.E. 781, 92 Va. 297, 1895 Va. LEXIS 116, Counsel Stack Legal Research, https://law.counselstack.com/opinion/buena-vista-co-v-mccandlish-va-1895.