Darling v. Nineteen-Eighty Corporation

176 N.W.2d 765, 1970 Iowa Sup. LEXIS 831
CourtSupreme Court of Iowa
DecidedMay 5, 1970
Docket53845
StatusPublished
Cited by6 cases

This text of 176 N.W.2d 765 (Darling v. Nineteen-Eighty Corporation) is published on Counsel Stack Legal Research, covering Supreme Court of Iowa primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Darling v. Nineteen-Eighty Corporation, 176 N.W.2d 765, 1970 Iowa Sup. LEXIS 831 (iowa 1970).

Opinion

BECKER, Justice.

Action to quiet title to real estate. Defendant corporation counterclaimed for specific performance of an alleged contract for the sale of the farm in controversy. After trial the court held no contract to sell the real estate had been consummated, dismissed the counterclaim and entered judgment quieting title in plaintiff. Defendants appeal. We affirm.

The property consists of 75 acres of land on the southwest corner of Highway 28 and Army Post Road in Polk County which was owned by plaintiff, John P. Darling. For many years Mr. Darling and his family had been represented and advised by Noel T. Robinson, Vice President and Trust Officer of the Central National Bank and Trust Company of Des Moines. These efforts included establishment of trusts and administration of the Darling family affairs. The relationship between Robinson and the Darling family is described as “very, very close”.

At the time material to this action the farm was solely owned by Mr. Darling, a resident of Florida. He advised Robinson to increase his (Darling’s) income by sale of the farm which, while very valuable, was not bringing a substantial return.

Robinson proceeded to accomplish the sale. Two potential buyers were interested, *767 David W. Belin and his associates and E. C. Coppola. Mr. Belin’s group formed defendant The Nineteen-Eighty Corporation for the sole purpose of buying the property. Belin disavows any personal interest in the transaction.

Because of the narrow point involved we will not recite at length the maneuvers of the two ready, willing and able buyers, each of whom wanted the land but on the most favorable terms possible, and the seller, who wanted the best price obtainable. Suffice to say Belin prepared an offer to buy the property and a real estate contract for such purchase which he took to Robinson. The contract recited the purchase price as $60,000, “of which $10,Q00 has been paid herewith.” This was the price Robinson had in mind and had discussed with his principal, John Darling. Robinson told Belin two documents were not necessary; they were agreed on the details of financing, date of physical delivery, payment of the real estate broker’s fee, proration of taxes and the like. He suggested Belin (both men were lawyers) prepare a deed to be forwarded to Darling for his approval and signature. The deed was prepared, delivered to Robinson and forwarded by him with the contract and a covering letter to Darling. No money was paid at this point.

There is little doubt that all persons present at the initial meeting felt a deal had been made subject to Darling’s concurrence. But Robinson did not feel he had authority to sell this property (although he had a power of attorney from Darling) and defendants do not claim he made a sale at the time. They claim there was a complete understanding subject only to Darling’s acceptance. They contend there was an irrevocable acceptance when Darling signed the contract and deposited it in the mail to Robinson.

The contract and deed were forwarded to Darling by mail and returned by Darling by mail. While the papers were in the mail, Coppola made a higher offer for the farm. Robinson called Darling who instructed his agent not to deliver the contract and deed to defendants.

Robinson notified Belin of the higher offer and a proposal to accept..bids on the property with the offers limited to $75,000 or more. Belin stated he considered his corporation had purchased the property and demanded return of the contract. Robinson tore the signatures off the contract copies and delivered them to Belin.

Coppola bid as requested and apparently bought the property for $75,500. Belin filed an affidavit in the Polk County Court House which stated the described property had been purchased by The Nineteen Eighty Corporation. This occasioned the instant action by plaintiff Darling to quiet title and the counterclaim for specific performance by the corporation.

I. Defendants rely entirely on our holdings in Hayne v. Cook, 252 Iowa 1012, 109 N.W.2d 188 and the cases there discussed. If this case is controlled by Hayne defendants are entitled to a reversal, otherwise not.

We could review a large portion of the contract law in determining the relative position of the parties through each step of the negotiations recited above. We find this unnecessary. The law on most of the points is exhaustively reviewed in Hayne v. Cook, supra.

At the time the written contract and deed were submitted to Robinson and forwarded by him to his principal there was no binding contract in effect. Defendants do not dispute this conclusion. They contend the offer made to plaintiff through Robinson, as plaintiff’s agent, was accepted when Darling put the papers back in the mail addressed to Robinson. In other words, the parties manifested a mutual, unequivocal assent to the terms of the contract by communicating a valid offer and acceptance which was complete when it was put in the mail addressed to Robinson.

“The real nub of this controversy then appears to be whether the acceptance *768 was ‘delivered’ to plaintiff in the legal sense of the word.” (Loc. cit. Hayne v. Cook, 252 Iowa at page 1020, 109 N.W.2d at page 192.) The issue here is identical with the issue in Hayne v. Cook. In Hayne we stated delivery is a matter of intent and concluded delivery to purchaser was complete when the contract was mailed to a common agent. If the agent was agent for the offeree only, the act of mailing the papers to him would not constitute an acceptance and could be recalled at any time up until actual delivery to the offerer. Restatement, Contracts § 102, Illustration #3; Lucas v. Western Union Telegraph Co., 131 Iowa 669, 109 N.W. 191. This rule was recognized in Hayne v. Cook, 252 Iowa 1012, 1027, 109 N.W.2d 188, where we said:

“ * * * While it may be true, as the trustee contends, that without the other circumstance a delivery of the instrument to Shuler, as Blair’s agent, for delivery to the plaintiff could be recalled before he made the actual delivery, yet if that agent was also the designated agent of the of-ferer, such a delivery could not be recalled. * * *»

Thus the Hayne case and this case turn on whether the intermediary was a common or dual agent. In Hayne' we concluded Shuler was agent for both parties. The real significance of the conclusion was that such a finding made him agent for the of-ferer. Under the circumstances then any communication to the offerer’s agent would be a communication to the principal. On the de novo review we found, as did the trial court: “ * * * At any rate, we think the evidence satisfactorily establishes that Blair made Shuler the custodian for Hayne, that the contract was so delivered to Shuler, and that this was a sufficient delivery to complete its execution as a subsisting contract.” (Loc. cit. 252 Iowa at pages 1028, 1029, 109 N.W.2d at page 196.)

Here the trial court came to an opposite conclusion and again we agree. We give weight to the trial court’s findings but are not bound by them in this de novo review.

The complexity of the fact situation in the Hayne case precludes detailed comparison with this case.

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Bluebook (online)
176 N.W.2d 765, 1970 Iowa Sup. LEXIS 831, Counsel Stack Legal Research, https://law.counselstack.com/opinion/darling-v-nineteen-eighty-corporation-iowa-1970.