Cheney v. Bilby

74 F. 52, 20 C.C.A. 291, 1896 U.S. App. LEXIS 1891
CourtCourt of Appeals for the Eighth Circuit
DecidedApril 13, 1896
DocketNo. 708
StatusPublished
Cited by24 cases

This text of 74 F. 52 (Cheney v. Bilby) is published on Counsel Stack Legal Research, covering Court of Appeals for the Eighth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Cheney v. Bilby, 74 F. 52, 20 C.C.A. 291, 1896 U.S. App. LEXIS 1891 (8th Cir. 1896).

Opinion

CALDWELL, Circuit Judge,

titter slating the case as above, delivered ¡lie opinion of the court.

The transaction between Cheney and Wisherd was the very simple one of (lie sale by the former to the latter, mostly on credit, of a tract of wild land. As simple in itself as the transaction was, the written instrument expressing it is an extremely voluminous document, imposing on the purchaser numerous and unusual, stringent, and oppressive conditions, all of which are required to be “strictly and literally” performed by the purchaser, on pain of forfeiting tin' land, and all improvements, fixtures thereon, and all the purchase money paid, and all that may be due when Hie forfeiture is declared, and also the crops that may them he growing on the land. Tirin' is (.n ice declared to be “the essence of this contract,” in respect of every one of its numerous provisions, and it is further declared that “no court shall relieve tin' said second party from a failure to comply sirietiy and literally with this contract,” and that “an oversight or omission of the first party 1o lake notice of any default of the second party shall not be deemed a waiver of the right to do so at any time thereafter.” In the number, severity, and stringency of ils provisions as applied to the purchaser, the contract is without a precedent in our judicial expeiience out side of the cases in which similar comracts made by Cheney with other persons have given rise to lawsuits, and have been made the subject, to a greater or less extent, of judicial considera I ion. We cile some of these cases: Wagner v. Cheney, 16 Neb. 202, 20 N. W. 222; Robinson v. Cheney, 17 Neb. 673, 24 N. W. 378; Roberts v. Cheney, 17 Neb. 681, 24 N. W. 382; Ballard v. Cheney, 19 Neb. 58, 26 N. W. 587; Svaboda v. Cheney, 28 Fed. 500; Cheney v. Bacon, 1 C. C. A. 244, 49 Fed. 305; Cheney v. Libby, 134 U. S. 68, 10 Cup. Cf. 498. However harsh and exuding [58]*58the contract may be, Cheney is entitled to the full benefit of its provisions, and we have only called attention to some of them because they disclose a motive and afford an explanation for Cheney’s subsequent conduct.

We will proceed to consider the several grounds upon which Cheney rests his defense to the bill for specific performance. The first ground relied on in the answer is that the contract is “forfeited, null, and void by reason of the nonpayment of the notes given for the purchase.money as they severally matured.” These notes, by the terms of the contract and by their own terms, were payable at the office of Russell & Holmes, Tecumseh, Neb. Wisherd paid, as part of the purchase price for the land, $412.55, at the date of the execution of the contract; and he also paid at maturity the first two interest notes, due, respectively, May 2, 1882, and May 2, 1883, each for the sum of $905.63. Before May 2, 1884, the date of the maturity of the first principal and the third interest note, Wisherd had placed improvements on the land valued at $20,000. When the last-mentioned notes matured, Wisherd tendered payment of the same at the office of Russell & Holmes, at Tecumseh, Neb., where they were payable; but Russell & Holmes, not having the notes, declined to receive the money. Cheney denied that a legal tender had been made of the money due on these notes, declared the contract forfeited, and instituted an action of ejectment to recover the land. This ejectment suit was tried and decided against Cheney in the circuit court of the United States for the district of Nebraska on the 5th day of February, 1887. The case was then taken on writ of error by Cheney to the supreme court, of the United States, where it was pending until the 5th day of January, 1891, when it was dismissed on Cheney’s motion. By this action the judgment in this ejectment suit became final, and is conclusive against the claim of Cheney that Wisherd had forfeited his rights under the contract by failing to tender payment of the notes which matured May 2, 1884. From the time Cheney brought the action of ejectment, in 1884, to enforce the alleged forfeiture and recover the land, down to the 17th of May, 1890, he asserted that due tender of payment of the notes which matured May 2, 1884, had not been made, and that the contract was null and void. He refused to accept payment of the other purchase-money notes as they matured, or to otherwise recognize the contract as in force. Cheney’s action rendered it manifest that it was not payment of the notes he desired, but a forfeiture of the contract. Wisherd, perceiving that it was Cheney’s purpose to enforce “strictly and literally” the sweeping forfeitures provided for in the contract if the slightest ground was afforded him for so doing, was put upon his guard, and was at great pains and considerable expense to comply strictly and literally with the terms of the contract. Notwithstanding Cheney’s persistent declaration that the contract was forfeited and null and void, Wisherd continued to tender payment of the other purchase-money notes as they matured, at the place where they were made payable. On the 3d of March, 1890, the supreme court of the United States decided the case of Cheney (the same Cheney who is appellant in this case) v. Libby, 134 [59]*59U. S. 68, 10 Sup. Ct. 498. That was a suit to compel specific performance by Cheney of a written contract similar to the one in suit, for the sale by him to Libby of land in Nebraska. The facts upon which the complainant in that case grounded his claim for specific performance, so far as they relate to the action of Cheney, bear a strong analogy to the facts in this case. Fourteen days after the supreme court of the United States handed down its opinion in that ease, Cheney abandoned Ms claim to a forfeiture growing out of the alleged nonpayment of any of the notes which matured prior to May IT, 1890, as will be seen by the following letters, written by him on that day:

“Teeumseli National Bank, Successor to Bank of Bussell & Holmes.
“Teeumseli, Neb., May 17, 1890.
“0. A. Holmes, Esq., Prest. Teeumseli, Neb. — Dear Sir: Herewith I hand you for colín. & my cr. 14 past-due notes of S. A. Wisherd, all dated May 2/81, viz. [here follows a particular description of each note]; all drawing ten per cent, interest after d,ue. If Mr. Wisherd will pay same, you will please receive payment therefor for me. Mr. Wisherd to pay the full amount of principal and ten per cent, interest on each of the 14 notes, according to their terms. You will not receive any part payment on the notes, or on any of them. I require full payment of all the notes.
“Yours, truly, P. D. Cheney, of Jerseyville, ill.”

On the same day he wrote the following letter to Wisherd:

“Teeumseli National Bank, Successor to Bank of Bussell & Holmes.
“Teeumseli, Neb., May 17, 1890.
“John A. Wisherd, Esq., Adams, Neb. — Dear Sir: You are hereby notified that I have this day left at this bank your 14 past-due notes, which you can get by paying the amount due thereon within a reasonable time.
“Yours, truly, • P. D. Cheney.”

Within a reasonable time after the receipt of this letter, Wisherd caused to be tendered the principal sum on the 14 past-due notes. Interest thereon after maturity was not included, because payment of the notes had been tendered at the maturity of each. Cheney was advised of this tender by the following letter from his agent:

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Bluebook (online)
74 F. 52, 20 C.C.A. 291, 1896 U.S. App. LEXIS 1891, Counsel Stack Legal Research, https://law.counselstack.com/opinion/cheney-v-bilby-ca8-1896.