Chournos v. Evona Inv. Co.

93 P.2d 450, 97 Utah 335, 1939 Utah LEXIS 72
CourtUtah Supreme Court
DecidedAugust 10, 1939
DocketNo. 6092.
StatusPublished
Cited by21 cases

This text of 93 P.2d 450 (Chournos v. Evona Inv. Co.) is published on Counsel Stack Legal Research, covering Utah Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Chournos v. Evona Inv. Co., 93 P.2d 450, 97 Utah 335, 1939 Utah LEXIS 72 (Utah 1939).

Opinions

PRATT, Justice.

Nick Chournos and L. L. Keller were joint lessees of certain grazing land. The Evona Investment Company was the lessor. The lease was to expire October 1, 1939. It was in writing and contained the following provision:

“8. The lessor reserves, and is hereby given, the right to sell the lands herein described at any time during the continuance of this lease, or any extension thereof, but with the provision that the lessees shall have, and they are hereby given the first opportunity of purchasing the said premises, upon the same price and terms the lessor would receive of other parties * *

On December 23, 1936, the Company sérved upon Chour-nos a notice that one Lloyd Keller (a son of L. L. Keller) had offered $6,100 for the land. The notice was addressed to both Nick Chournos and L. L. Keller. It contained the following paragraph:

“And you are hereby further notified that said Evona Investment Company intends to, and will, sell and convey the said lands, and all thereof, to said Lloyd W. Keller for said price on or before the said date, unless you shall pay to the said Evona Investment Company the same or a greater sum on or before 12:00 o’clock noon of said January 2nd, 1937, for said premises.”

At approximately 11:45 a. m., January 2, 1937, Chournos and his counsel appeared at the Company office, tendered *338 Mr. Cook, the Company agent, $6,100 and requested a deed to Chournos. Admittedly they did not desire a deed to Chournos and Keller jointly. Mr. Cook refused the tender and request for deed, stating that he had received, that morning, a similar tender and request from L. L. Keller and his counsel; that he could not sell to both. Then Chournos and his counsel tendered one-half the amount for a deed for an undivided one-half of the land. Cook refused this. As the conversation proceeded, 12 o’clock rolled by. Suddenly Cook said all tenders were off as it was one minute past 12 o’clock. That afternoon a deed was issued and delivered to Lloyd Keller and Chournos commenced this suit by serving summons.

Plaintiff sought to compel the Company and the Kellers to specifically perform the terms of the option. He claimed a conspiracy upon the part of the defendants to deprive him of his interest in the leased land. Among other things, the lower court found that the Kellers had schemed together to get the land for Lloyd Keller; that the Company was not a party to that scheming; but that Chournos had not made a proper tender under the terms of the option. Judgment was rendered against Chournos and he has appealed.

There exists considerable bitterness between Chournos and Keller. Other actions have been filed between them. One came to this court on appeal. Keller v. Chournos, 95 Utah 25, 76 P. 2d 626. In that case, the lower court held that the two were joint adventurers in the sheep which were grazed upon the land involved in this suit. The decision by the Supreme Court, dismissing the case on procedural grounds, was rendered on the 28th day of February, 1938. Another suit was filed wherein Chournos sought a partition of these leased lands, and an accounting for rents for the use thereof by Keller, for the time he had all the sheep, awaiting the outcome of the appealed case cited above.

We find little difficulty in believing that the tender of L. L. Keller was conditioned upon a delivery of a deed to *339 himself. The father was very desirous of Lloyd having title to the property. Whether for the son’s benefit or ultimately for his own is immaterial. It would not be a stretch of the imagination to believe that L. L. Keller knew ahead of time the attitude Cook, the agent of the Company, would adopt, if one of the lessees made a demand adverse to the interests of the other. Chournos had visited Cook on other occasions to ascertain if the agent would make a deed to him (Chourn-os) . Cook and L. L. Keller had visited an attorney for advice as to whether or not Lloyd Keller could be a purchaser. Cook obtained advice on the matter from the Company counsel. What then would be more natural than that these matters were all discussed by the Kellers and Cook. The father (Keller) would not have to be very astute to see a means whereby he might interfere with Chournos, should the latter appear at the last moment, as he did, and tender the purchase price for a deed to himself as distinguished from a joint deed. Whether these inferences are justifiable or not, at least there is no evidence that L. L. Keller made a demand different from that testified to by Cook — conditioned upon a delivery of a deed to L. L. Keller.

Admittedly, Chournos did not want a deed to himself and L. L. Keller. When he tendered his $6,100 he was particular to request the deed to himself. When this was refused, he then tendered one-half of the amount for a one-half interest. One may safely say that the Company was not under any obligation to make a conveyance of fractional interests in the property. Thus we are brought to the question: Was the tender of either L. L. Keller or Nick Chournos a sufficient compliance with the option to bind the Company to execute a deed to them jointly? If either was, then plaintiff in this case is entitled to the relief he seeks, as Lloyd Keller is not, under the evidence, an innocent purchaser. There is no question but that the son knew about the circumstances as well as the father, and there is some question of whether he purchased solely with his own money, and not partly with his father’s.

*340 By the lease, the Company bound itself to extend an opportunity of purchase to the lessees, when and if the Company received an acceptable offer for the property. (See first quotation above.) However, that provision in the lease, standing alone, and without action by the Company, did not constitute an option in favor of the lessees.

“An option to purchase may be defined as a contract by which an owner agrees with another person that he shall have the privilege of buying his property at a fixed price within a specified time. The landowner does not sell his land; he does not then agree to sell it; but he does then sell something, — viz., the right or privilege to buy at the election, or option, of the other party. The second party gets in praesenti, not lands, or an agreement that he shall have lands, but he does get something of value; that is, the right to call for and receive lands if he elects. * * *” 27 R. C. L. 334.

But when the Company sent out the notice pursuant to that provision, the two (the provision and the notice) became an option, to be accepted, if accepted, by a certain definite time, in a certain definite amount, and in accordance with the intent of the terms of the agreement. If not so accepted, then the Company was no longer concerned with the lessees as such, and might convey as it wished.

“According to the great weight of authority, a court of Equity will decree specific performance in favor of the holder of an option who has duly elected to exercise his right to purchase.

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Bluebook (online)
93 P.2d 450, 97 Utah 335, 1939 Utah LEXIS 72, Counsel Stack Legal Research, https://law.counselstack.com/opinion/chournos-v-evona-inv-co-utah-1939.