Cornely v. Campbell

186 P. 563, 95 Or. 345, 1920 Ore. LEXIS 40
CourtOregon Supreme Court
DecidedJanuary 13, 1920
StatusPublished
Cited by28 cases

This text of 186 P. 563 (Cornely v. Campbell) is published on Counsel Stack Legal Research, covering Oregon Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Cornely v. Campbell, 186 P. 563, 95 Or. 345, 1920 Ore. LEXIS 40 (Or. 1920).

Opinions

BENNETT, J.

The case, as submitted to the jury, seems to have turned upon the question of whether the contract was terminated by a mutual agreement to rescind, upon the one hand, or by a rightful declaration of forfeiture, for nonfulfillment by the purchaser upon the other.

1. It seems to have been assumed by the court below that if the contract was rescinded by mutual arrange[352]*352ment and consent, without any agreement for forfeiture or by the 'wrongful act of the defendant, acquiesced in by the plaintiff, the parties were entitled to be placed in statu quo, and that the plaintiff would then be entitled to recover the value of the property turned in by him as a loayment. (The defendant having disposed of that property before the commencement of this action.) This view of the law seems to be sustained by the authorities.

In 39 Cyc. 2001, it is said:

“ When the proposed contract * * has been rescinded by mutual consent, by the vendor, or by the purchaser under a right to do so, the purchaser may sue the vendor to recover the money which has been paid by the purchaser to the vendor.”

And again on page 2002:

“Where the parties mutually agree to rescind the contract, there being no express stipulation with reference to the payment or payments already made thereunder, the law will imply a promise on the part of the vendor to refund such payment or payments to the purchaser, and the latter may maintain an action to recover back the same.”

And again on page 2003 and 2004:

“Where a contract for the sale of land is rescinded by the vendor, the purchaser is ordinarily entitled to repayment of the purchase money paid, and may maintain an action against the vendor to recover the same. So where the vendor does some act which amounts to a rescission of the contract, the purchaser may recover back the payments made by him.”

In Maffet v. Oregon & Cal. R. R. Co., 46 Or. 443, 457 (80 Pac. 489, 494), it is said:

“Treating the defendant’s declaration that the contract is canceled, and no longer of any force or effect, as an abandonment, the plaintiff might himself aban[353]*353don, and, the contract having thus come to an end; he might very well, as he has done, sne at law to recover what he has paid: Glock v. Howard & W. Colony Co., 123 Cal. 1, 10 (55 Pac. 713, 719, 69 Am. St. Rep. 17, 43 L. R. A. 199). Mr. Justice Henshaw, in further consideration of this case, says: ‘ There have been many cases before this court involving the rights of parties to agreements for the sale and purchase of real estate, in which it has been held that, after the parties have rescinded the agreement or mutually agreed to abandon, the vendee may recover the money which he paid in part performance of his contract’; citing cases. This court, however, has settled the principle by the language of Mr. Chief Justice Moore in Graham v. Merchant, 43 Or. 294, 304 (72 Pac. 1088, 1090), as follows : ‘When a vendor abandons his contract to convey, the vendee, in his choice of remedies, may elect to rescind the contract, and thereupon maintain an action at law to recover what he has paid thereon as money had and received.’ Thus it is that an abandonment by one party may be treated as a proposition to rescind by the other and thereupon he may also abandon, and thus arrive at a mutual agreement to rescind, and the law so treats the correlative acts of the parties.”

2. On the other hand, if the purchaser is in default and that default has not been waived by the vendor, and the vendor rightfully and in accordance with law and the terms of the contract, declares a forfeiture of the same, where the contract makes time of the essence of the contract, and provides for a forfeiture of the payment, the purchaser cannot recover back the payment already made, in an action of this kind.

In passing upon the case we shall only consider the rulings and instructions insisted upon as error in appellant’s brief.

The thirteenth exception of the defendant is based upon the following instruction asked for by the defendant and refused by the court:

[354]*354“If the defendant retook the property npon default in payment, under the terms of the written contract, such resumption of possession was not a rescission of the contract mid previous payment therefor cannot be recovered by the plaintiff.”

We have italicized the last clause of the instruction, because it made plaintiff’s right to recover, turn entirely upon the conditions under which the defendant actually retook possession of the property, and entirely ignored the plaintiff’s contention that the contract was ended and terminated, by what amounted to a mutual rescission thereof, entirely independent of, and previous to the retaking of possession, some time in the summer or fall of the year 1912.

3. It is obvious, that if the contract was terminated by abandonment on the part of the defendant, acquiesced in by the plaintiff, or by mutual arrangement and consent, in 1912 — the fact that defendant afterwards took possession of the property in forfeiture of the contract in February, 1913, would not and could not destroy plaintiff’s right of recovery. In other words, the instruction made the case turn absolutely upon defendant’s theory of the case and ignored that of the plaintiff.

The court charged the jury:

“A party who has advanced money or done an act in performance of an agreement and then stopped short and refused to proceed to the ultimate conclusion of the agreement, the other party being ready and willing to proceed and fulfill all his stipulations according to the contract, is not suffered to recover for what has been advanced or done.”

This was as favorable to the defendant in this regard as he could reasonably ask.

[355]*355The fifteenth exception refers to an instruction asked by the defendant and modified by the court. The defendant asked the court to instruct the jury:

“Before the plaintiff can recover in this action he must show either that he was not in default or that he was ready, willing and able to perform.”

The court modified the instruction by adding after the word “default,” “or that his default was waived by defendant,” and also by adding the word “it” at the end of the instruction.

The addition of the clause “or that his default was waived by defendant” was clearly pertinent to the real issue in the case, and was we think a proper modification.

If the contract was terminated by abandonment on the part of the defendant and mutual rescission in the fall of 1912, as contended by the plaintiff, then there had clearly been a waiver of the default on January 1st of that year, by the acceptance of payment after that time. Indeed, the defendant does not seriously contend that the default on January 1, 1912, was not waived. Under the circumstances the court could not very well give the requested instruction as asked without modification. The addition of the word “it” at the end of the instruction does not, as far as we can see, affect the meaning one way or the other and we do not think the jury could have misunderstood the instruction.

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Cite This Page — Counsel Stack

Bluebook (online)
186 P. 563, 95 Or. 345, 1920 Ore. LEXIS 40, Counsel Stack Legal Research, https://law.counselstack.com/opinion/cornely-v-campbell-or-1920.