Dale Ex Rel. Smith v. Pushor

75 N.W.2d 595, 246 Minn. 254, 1956 Minn. LEXIS 507
CourtSupreme Court of Minnesota
DecidedJanuary 27, 1956
Docket36,588
StatusPublished
Cited by23 cases

This text of 75 N.W.2d 595 (Dale Ex Rel. Smith v. Pushor) is published on Counsel Stack Legal Research, covering Supreme Court of Minnesota primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Dale Ex Rel. Smith v. Pushor, 75 N.W.2d 595, 246 Minn. 254, 1956 Minn. LEXIS 507 (Mich. 1956).

Opinion

Matson, Justice.

In an action to set aside the cancellation of a contract for deed, plaintiff appeals from a judgment for the defendant.

This action was originally commenced by Eose T. Dale as plaintiff. Subsequently, Edward A. Smith was appointed general guardian of Eose and he was thereafter substituted as party plaintiff. Unless otherwise indicated, Eose will be described herein as the plaintiff.

*256 This action grows out of the cancellation of a contract for deed. 2 Defendant, Minnie Pushor, and her then husband Clarence, on September 18, 1950, sold and conveyed by contract for deed to Mabel Jeffery a house and lot in Minneapolis. Two days later they assigned their interest in the contract as vendors to Mary Blanche Lovejoy who on the same day reassigned the contract to defendant, Minnie Pushor, alone. These assignments merely removed defendant’s husband from the picture.

On January 17, 1952, the vendee, Mabel Jeffery, entered into an agreement with the plaintiff herein, Rose T. Dale, whereby the latter agreed to purchase the premises, together with the personal property therein, for $18,057.30. As part of the pur chase.agreement plaintiff assumed and agreed to pay the above contract for deed.

Plaintiff, as assignee of the original vendee, defaulted in the making of certain payments under the contract for deed. Because of such defaults the defendant, Minnie, served a notice of cancellation of said contract upon the plaintiff herein on June 6, 1953, and upon Mabel Jeffery on June 8, 1953.

This action to nullify the notice of the cancellation of contract and to adjudge it to be invalid; to compel defendant to accept the payments in arrears and to reinstate the contract; and further to enjoin defendants from evicting plaintiff from the premises was commenced on July 23, 1953. The action did not come on for trial until September 30, 1954. The trial court specifically found that at the time the notice of cancellation of contract was served on the plaintiff she was mentally ill and emotionally upset and that she had then suffered a deprivation of her reasoning faculties and was incapable of understanding and acting with discretion in the ordinary affairs of life. It was further found that the period of redemption under said notice of cancellation had expired and that throughout said period the contract was and since has been in default and that neither plaintiff nor her guardian has made tender of the amounts *257 in default. Judgment was entered for the defendant, and plaintiff appeals.

Questions arise as to whether the evidence sustains the court’s finding that no tender had been made by plaintiff of the amounts in default under the contract and as to whether the cancellation of contract proceedings is invalid because the statutory notice of cancellation (M. S. A. 559.21) was served on plaintiff when she was mentally incompetent. In addition, error is predicated on the trial court’s denial of various motions for leave to add additional parties defendant and to file a proposed amended and supplemental complaint.

Does the evidence sustain the finding that plaintiff has not made tender of the amounts in default? Before examining the evidence we turn to the legal requirements of an effective tender to accomplish a reinstatement of the contract when a notice of cancellation has been served under § 559.21. Proceedings under § 559.21 for the cancellation of a contract for deed which is in default are in the nature of a statutory foreclosure, akin to a foreclosure under a power of sale in a mortgage. McKinley v. State, 188 Minn. 325, 330, 247 N. W. 389, 391. In Dunn v. Hunt, 63 Minn. 484, 65 N. W. 948, involving an action to compel the execution of a certificate of redemption of real estate from a mortgage foreclosure sale, the plaintiff actually tendered the amount due on the last day of redemption but the tender was refused. During the pendency of the subsequent action to compel redemption, the tender was not continuously kept good by keeping sufficient money available for payment at all times. In the Dunn case Mr. Justice Mitchell said (63 Minn. 485, 65 N. W. 949):

“* * * The cardinal principle of the doctrine of tender is that it is substantial performance. Hence it must be continuing; that is, there must be a continued readiness. The universal rule is that a tender, in order to be effectual for any purpose, must be kept good, except in cases where the mere refusal to accept the tender effects a particular result. * * * Equity is no less strict than the law in this respect.
*258 “* * * Here the tender was the very foundation upon which plaintiff’s right of action depended. Hence, not having been kept good, it is ineffectual for any purpose, and plaintiff stands to-day precisely as if no tender had ever been made.” 3

We hold the Dunn case controlling. It follows that, in an action to set aside the cancellation of a contract for deed under § 559.21 after the expiration of the 80-day redemption period on the ground that the vendee has tendered payment of the amount due and in default under the contract, the tender in order to be effective must be kept good at all times by having the necessary sum of money continuously available for payment whenever payment is requested.

In the instant case the trial court asked plaintiff’s counsel in the course of the trial whether plaintiff had the necessary money on hand to pay the entire amount due under the contract. Plaintiff’s counsel responded:

“Well, I don’t think, Your Honor, that we are in a position now to pay it, because the woman is declared insane and there is no means.”

In the light of this admission it is clear that the plaintiff, assuming that she had ever made a tender, had not kept the tender continuously good. The finding of the trial court on the issue of tender must therefore be affirmed.

Was the cancellation of the contract under § 559.21 invalid because at the time of the service of the notice of cancellation the plaintiff, as found by the trial court, was mentally incapable of understanding and acting with discretion in the ordinary affairs of life? In June 1936 she was committed to the Rochester State Hospital but was discharged the following November. She was again adjudged insane on December 8, 1953. Again we must not overlook that cancellation-of-contract proceedings under § 559.21 are in the nature of a statutory foreclosure, akin to the foreclosure of mortgage under a power of sale.

*259 In McKinley v. State, 188 Minn. 325, 247 N. W. 389, the defaulting vendee, who had been adjudged insane, was served with a notice of cancellation one day before she was formally discharged. The trial court, however, found that at the time she was not insane. In considering the validity of the statutory cancellation of a contract for deed, this court said (188 Minn. 330, 247 N. W.

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Bluebook (online)
75 N.W.2d 595, 246 Minn. 254, 1956 Minn. LEXIS 507, Counsel Stack Legal Research, https://law.counselstack.com/opinion/dale-ex-rel-smith-v-pushor-minn-1956.