Chatham-Trenary Land Co. v. Swigart

222 N.W. 749, 245 Mich. 430, 1929 Mich. LEXIS 978
CourtMichigan Supreme Court
DecidedJanuary 7, 1929
DocketDocket No. 20, Calendar No. 33,883.
StatusPublished
Cited by5 cases

This text of 222 N.W. 749 (Chatham-Trenary Land Co. v. Swigart) 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
Chatham-Trenary Land Co. v. Swigart, 222 N.W. 749, 245 Mich. 430, 1929 Mich. LEXIS 978 (Mich. 1929).

Opinion

North, C. J.

The plaintiff herein, being the owner of 16,880 acres of land in. Alger county, Michigan, entered into a contract on December 4, 1920, with George W. Swigart in behalf of himself and the other defendants whereby the defendants undertook to sell plaintiff’s land. The contract contained these provisions:

“10th. It is considered for the interest of both parties that sales of the lands embraced in the annexed schedule be made as speedily as possible, and to that end the second party agrees that by December 31,1921, he will have sold at least three thousand (3,000) acres and thereafter, that he will sell at least three thousand (3000) acres in each year until all shall be disposed of. * * *
“11th. In case, however, there shall be default in respect to the amount of land sold, or contracted *432 to be sold before December 31,1921, and the amount to be sold by second party each year thereafter, as in clause 10 provided, it shall'be optional with first party, to declare this contract forfeited as provided in clause 12.”

The defendants herein failed to sell 3,000 acres of land by December 31, 1921, as required by the contract. Instead they had disposed of only 839 acres, and thereupon the plaintiff filed a bill for specific performance on the 14th day of January, 1922, whereby it sought to have the defendants compelled to purchase from it the' balance of the 3,000 acres. Specific performance was denied by the trial court,- and upon appeal to this court the decree in that particular was affirmed. Chatham-Trenary Land Co. v. Swigart, 220 Mich. 137. The suit was transferred from the chancery to the law side of the circuit court of Alger county. The plaintiff filed a declaration to which the defendants pleaded the general issue and gave notice of special defenses. The declaration as framed by the plaintiff alleged a right to recover both on the theory of a total abandonment of the contract by the defendants and also on the theory of a breach of the contract-by reason of the defendants’ failure to sell the specified acreage during the year 1921. The record discloses that much consideration was given by the court and counsel to the question as to what was the proper theory upon which the plaintiff’s case should be submitted to the jury. The trial court held that there was no evidence of a total abandonment of the contract by the defendants prior to the date upon which suit was brought (November 29, 1922). It was also held by the trial court, notwithstanding the breach of the contract by the defendants in failing to sell the required acreage during the year 1921, that the dam *433 ages which, the plaintiff might recover in that suit were limited to such as it had sustained by reason of the defendants ’ failure to sell 3,000 acres by December 31,1921. This position was taken notwithstanding the offer of the plaintiff to show by competent’ proof what damages it would suffer by reason of the contract being terminated by defendants’ breach thereof and the consequent failure to sell the remaining portion of the land. Plaintiff’s offer seems to have been rejected on the ground that the contract was divisible on the basis of the minimum acreage required to be sold annually, and therefore the defendants were in default only to the extent of their failure to sell the specified acreage in 1921. On May 15, 1924, the jury rendered a verdict in favor of the plaintiff for nominal damages only. Neither party appealed.

April 30, 1925, the plaintiff filed a declaration in ■ the circuit court of Marquette county, Michigan, in the instant case; and it alleges its right to recover damages in consequence of the defendants’ total abandonment of the contract hereinbefore mentioned, which is alleged to have occurred on the 31st day of December, 1924, and also to recover damages for the breach of the contract because of defendants’ failure to sell the stipulated amount of acreage during each of the years 1922, 1923, and 1924. The defendants moved to dismiss the plaintiff’s declaration on the ground that the verdict and judgment rendered in the circuit court in Alger county is res adjudicate/, of the issues presented in this case. This motion was granted, and the plaintiff reviews by writ of error.

The record conclusively shows that incident to the trial of the case in Alger county the circuit judge *434 ruled adversely to the claim of the plaintiff in holding:

(1) There was no evidence tending to establish total abandonment of the contract by the defendants before that suit was instituted, and

(2) That notwithstanding defendants’ breach of •the contract by failing to sell 3,000 acres of land in 1921, the contract was “severable and the plaintiff is entitled to maintain and recover in this case only as to the value of the sale during 1921.”

After an extended consultation between the court and counsel, plaintiff’s attorney said:

“Then do I understand that your honor is going to limit the damages to the 2,200 acres or thereabouts not sold in 1921?
“The Court: Yes.”

Plaintiff’s counsel had urged that the record was such “as to justify the bringing of one action and the recovery of one set of damages for the entire breach of the contract.” Its offer to prove damages for the years 1922, 1923, and 1924 was objected to by defendants’ counsel and the objection was sustained. The ground of this objection was not made very specific, but it conclusively appears from the record that the defendants were seeking to exclude from consideration and adjudication in the Alger county case plaintiff’s claim for damages resulting from the total breach of this contract; and the defendants were successful in having the court confine recovery in that case to damages for failure to sell 3,000 acres in 1921. In their briefs the defendants assert that plaintiff did not recover damages for the years subsequent to 1921 because of plaintiff’s failure to make the necessary proof. The record does not sustain this contention. Plaintiff’s offer to make the proof was objected to by the defendants and the *435 objection was sustained by tbe court. If the court’s ruling by which recovery was confined to 1921 was correct on the ground that the contract was sever-able, the objection of res ad judicata now urged is not well founded. There is no claim that plaintiff’s right of action for damages because of the failure of the defendants to sell plaintiff’s land other than the 3,000 acres apportioned to 1921 has been adjudicated upon its merits; but the defendants now assert as a reason in support of their motion to dismiss:

“That the contract sued upon in this case is entire and indivisible, and the election of plaintiffs to commence suit in Alger county, Michigan, for a breach of said contract prohibits it from now suing defendants for an alleged breach of the same contract.”

This contention is directly opposite to the position taken by the defendants in the Alger county suit wherein they successfully objected to the introduction of proof by which the plaintiff sought to show its damages for the years subsequent to 1921.

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

Related

American Mutual Liability Insurance v. Michigan Mutual Liability Co.
235 N.W.2d 769 (Michigan Court of Appeals, 1975)
American Mut. Liab. Ins. Co. v. Mich. Mut. Liab. Co.
235 N.W.2d 769 (Michigan Court of Appeals, 1975)
Cavosie v. Sinclair Refining Co.
290 N.W. 871 (Michigan Supreme Court, 1940)
Michaelson v. Simula
250 N.W. 264 (Michigan Supreme Court, 1933)
Siegmeyer v. Small
236 N.W. 904 (Michigan Supreme Court, 1931)

Cite This Page — Counsel Stack

Bluebook (online)
222 N.W. 749, 245 Mich. 430, 1929 Mich. LEXIS 978, Counsel Stack Legal Research, https://law.counselstack.com/opinion/chatham-trenary-land-co-v-swigart-mich-1929.