Busch v. Baker

83 So. 704, 79 Fla. 113
CourtSupreme Court of Florida
DecidedJanuary 28, 1920
StatusPublished
Cited by17 cases

This text of 83 So. 704 (Busch v. Baker) is published on Counsel Stack Legal Research, covering Supreme Court of Florida primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Busch v. Baker, 83 So. 704, 79 Fla. 113 (Fla. 1920).

Opinion

Reaves, Circuit Judge.

The appellee, Charles H. Baker, whom we shall herein call the complainant, filed his bill in the Circuit Court for Dade County in chancery, against the appellant, Carence M. Busch, whom we shall call the defendant. An answer was filed, and upon motion of counsel for complainant, certain portions of the answer were stricken, and the case comes to this court upon an appeal from the order granting said motion to strike.

The bill alleges briefly that on the 26th of August, 1916, the complainant was the owner of $50,000.00 of the fully paid capital stock of the South Florida Farms Company; that he agreed to sell said stock to the defendant for $41,-000.00, to be paid $14,000.00 in cash, and the conveyance by defendant to complainant of certain real estate in New York City which was heavily encumbered, but in which defendant had an equity estimated at $27,000.00. And the agreement, which was in writing, specified that if the complainant did not sell the New York real estate before March 1, 1918, the defendant would buy the same back from complainant for the sum of $27,000.00 provided the complai'nhnt had, in the meantime, paid all taxes and interest accruing against the said property, etc.

The bill alleges that the sale of the said stock in the South Florida Farms Company was consummated and paid for as agreed, to-wit, by paying $14,000.00 cash and deeding the New York property and that the complainant, having failed to sell the New York property by the time stated in the contract, and having kept the taxes and interest paid, etc., as provided: in the contract, aSked the defendant to buy said property back for $27,000.00, which the defendant refused to do. And this bill is brought to compel the specific performance of the defendant’s agreement to buy back the said New York property. The [116]*116motion to strike certain portions of the answer was interposed presumably on the theory that the answer claimed affirmative relief under Chapter 6907, Acts of 1915. But counsel for defendant, in their briefs, vigorously disclaim any intention to claim affirmative relief, but say that the answer is purely defensive, and was so intended. We, therefore, shall consider the defendant bound, both in this and the lower court, by the construction placed by his counsel upon his answer, and will dispose of the questions raised accordingly. We may say, however, that we think counsel for complainant were justified in construing the answer as praying for affirmative relief, and but for the fact that the same conclusion as to the merits of this appeal would be reached we might not adopt the defendant’s construction of liis own answer. Considering the answer as purely defensive the contention of appellant is that the portions of the answer stricken out upon motion are material- to -h.is defense, and that, if immaterial, the defect could not be reached by motion; and in either case the lower court was in error. We shall dispose of these propositions in the reverse order stated.

The portion of the answer first stricken is contained in paragraph 2, and reads as follows: “But defendant denies that said stock was fully paid as in said bill alleged, and asserts that, on the contrary, the same was not fully paid and that there was still due the said company upon said stock the sum of $9,000.00, all of which was artfully concealed from the defendant by said complainant.” This is claimed by counsel to be an answer to the allegation in the bill, that “complainant was the owner bf $50,000.00 of the fully paid capital- stock,” etc., which he sold to the defendant. And the argument is that, this being a suit in equity for specific performance, the doctrine that he who comes into equity must come with clean [117]*117hands has peculiar application inasmuch as the granting of specific performance is in the sound judicial discretion of the court, and that the portion of the answer so stricken tends to show that the hands of the complainant were unclean, in that he concealed material facts in procuring the contract upon which he now rests his cause of action. This contention seems well founded. It is true that the allegation falls far short of showing actionable fraud. Huffstetler v. Our Home Life Ins. Co., 67 Fla. 324, 65 South. Rep. 1; Allen v. United Zinc Co., 64 Fla. 171, 60 South. Rep. 182; Williams v. McFadden, 23 Fla. 143, 1 South. Rep. G18. Tint misrepresentation, or concealment, is not required to go to the extent of actionable fraud in order to justify a chancellor in his discretion in refusing to grant specific performance of a contract induced thereby. Pomeroy’s Eq. Jur. (14th ed.), Sec. 400; Harton v. Little, 188 Ala. 640, 65 South. Rep. 951; Smith v. Price, 125 Ark. 589, 189 S. W. Rep. 167.

Tf it be true that the corporate stock was sold to the defendant as fully -paid, when as a matter of fact, there was $9,000.00 unpaid thereon, it cannot be said from the pleadings that the conduct of complainant in concealing that fact was not such as to constrain a court of equity to withhold from him the specific performance of his contract. The extent to which a b'ourt of equity may go in considering such matters in an action for specific performance, and the reasons therefor, are so well stated by Pomeroy as to justify a lengthy quotation from said Sec. 400: “A contract may be perfectly valid and binding at law; it may be of a class which brings it within the equitable jurisdiction, because the legal remedy is inadequate; but if the plaintiff’s conduct in obtaining it, or in acting under it, has been unconscientious, inequitable, or characterized by bad faith, a court of [118]*118equity will refuse him the remedy of specific performance, and will leave him to his legal remedy by action for damages. It is sometimes said that the remedy of specific performance rests with the discretion of the court; but, rightly viewed, this discretion consists mainly in applying ■to the plaintiff the principle, he who comes into a court of equity must come with clean hands, although the remedy, under certain circumstances, is regulated by the principle, he who seeks equity must do equity. The doctrine, thus applied, means that the party asking the aid of the court must stand in conscientious relations towards his adversary; that the transaction from which his claim arises must be fair and just, and that the relief itself must not be harsh and oppressive upon the defendant. By virtue of this .principle, specific performance will always be refused when the plaintiff has obtained the agreement by sharp and unscrupulous practices, by over-reaching, by concealment of important facts, even thought not actually fraudulent, by trickery, by taking undue advantage of his position, or by any other means which are unconscientious; and when the contract itself is unfair, one-sided, unconscionable, or affected by any other such inequitable feature, and when the specific enforcement would be oppressive upon the defendant, or would prevent the enjoyment of his own rights, or would in any other manner work injustice. This application of the principle, better perhaps than any other, illustrates its full meaning and effect; for it is assumed that the contract is not illegal; that no defense could be set up against it at law; and even that it possesses no features or incidents which would authorize a court of equity to set it aside and cancel it. Specific performance is refused simply because the plaintiff does not come into court with clean hands.”

[119]

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Romero v. Allstate Insurance
158 F. Supp. 3d 369 (E.D. Pennsylvania, 2016)
Polite v. State
116 So. 3d 270 (Supreme Court of Florida, 2013)
Marlow Investments, N.V. v. S.A.B.T.C. Townhouse Ass'n
493 So. 2d 14 (District Court of Appeal of Florida, 1986)
Fromberg, Fromberg & Roth Properties, Inc. v. Springtree I, Ltd.
408 So. 2d 1070 (District Court of Appeal of Florida, 1982)
George Hunt, Inc. v. Wash-Bowl, Inc.
348 So. 2d 910 (District Court of Appeal of Florida, 1977)
Faber v. Landman
123 So. 2d 405 (District Court of Appeal of Florida, 1960)
Horne v. Sewell
118 So. 2d 643 (District Court of Appeal of Florida, 1960)
Silverstein v. Wakefield
112 So. 2d 406 (District Court of Appeal of Florida, 1959)
Manning v. Mentone Corp.
99 So. 2d 223 (Supreme Court of Florida, 1957)
Barnett Nat. Bank of Jacksonville v. Murrey
49 So. 2d 535 (Supreme Court of Florida, 1950)
Hollingsworth v. Arcadia Citrus Growers' Association
165 So. 369 (Supreme Court of Florida, 1934)
Williams Et Ux. v. Dunn
135 So. 139 (Supreme Court of Florida, 1931)
Proctor v. Hearne
131 So. 173 (Supreme Court of Florida, 1930)
Dale v. Jennings
107 So. 175 (Supreme Court of Florida, 1925)
Boone v. Gay
104 So. 585 (Supreme Court of Florida, 1925)
Stokely v. Connor
85 So. 678 (Supreme Court of Florida, 1920)

Cite This Page — Counsel Stack

Bluebook (online)
83 So. 704, 79 Fla. 113, Counsel Stack Legal Research, https://law.counselstack.com/opinion/busch-v-baker-fla-1920.