Davis v. . Ely

10 S.E. 138, 104 N.C. 16
CourtSupreme Court of North Carolina
DecidedSeptember 5, 1889
StatusPublished
Cited by8 cases

This text of 10 S.E. 138 (Davis v. . Ely) is published on Counsel Stack Legal Research, covering Supreme Court of North Carolina primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Davis v. . Ely, 10 S.E. 138, 104 N.C. 16 (N.C. 1889).

Opinion

SheiuieRD, J.,

(after stating the case). There is a hopeless conflict of authority upon the question, whether a court of equity will correct an executory contract on the ground of fraud or mistake, and enforce it with the variation.

In England, and several of the American States, such relief is denied, although a defendant, for the purpose of resisting specific performance, may show that, by fraud or mistake, the written contract does not express the real terms of the agreement. In other States, this distinction is repudiated, and the contract will be corrected and enforced, in proper cases, at the instance of either party.

Where such executory contracts, within the statute of frauds, are corrected and enforced, there is a further diversity — some courts holding that'they will only exercise the power where the object is to restrict the subject matter of the contract, while others hold that the contract will be corrected, although its subject is enlarged. Of this latter opinion is Mr. Pomeroy (Pomeroy’s Eq. Juris., 2 Vol., 367), and other writers of great respectability. Opposed to this view, we have the English authorities (Woollam v. Hearn, White & Tudor’s Leading Cases in Equity), and Bispham’s Equity, Wharton’s Evidence, § 1024, and many decisions in the United States, of which the leading case is Glass v. Hurlbert, 102 Mass., 24. In this case, the Court says, “that when the proposed reformation of an instrument involves the specific enforcement! of an oral agreement within the statute of frauds; or when the term sought to be added would modify the instrument so as to make it operate to convey an interest or secure a right, which can only be conveyed or secured through an instrument in writing, and for which no writing has ever existed, the statute of frauds is a sufficient answer to such proceeding, unless the plea of the statute can be *21 met by some ground of estoppel to deprive the party of the right to set up that defence. Jordan v. Lawkins, 1 Ves. Jr., 402; Osborn v. Phelps, 19 Conn., 63; Clinan v. Cooke, 1 Sch. & Lef., 22. But the fact.that the omission, or defect, in the writing, by reason of which it failed to convey the land, or express the obligation which it is sought to make it convey or express, was occasioned by mistake, or by deceit and fraud, will not alone constitute such an estoppel. * * * * Rectification, by making the contract include obligations or subject matter to whicli its written terms will not apply, is a direct enforcement of the oral agreement, as much in conflict with the statute of frauds, as if there was no writing at all ”

This decision, in so far as it holds that the subject matter of the contract may not be enlarged, is supported by abundant authority.

Story’s Equity Jurisprudence is often cited to sustain the other view; but the argument there seems to be directed against the distinction between parties seeking and parties resisting specific performance. It refers to the decisions of Chancellor Kent in Gillespie v. Moon, 2 Johns., ch. 585, and Kieselbrack v. Livingston, 4 Johns., ch. 144. In neither of these cases was the subject matter enlarged. In Gillespie's case (so often cited), the correction made was the striking out of fifty acres from a written agreement which included two hundred and fifty. Bispham’s Equity, 445, says, “that in cases which fall’ within the statute, it is obvious that to carry the rule in Gillespie's case to the extent of holding that an agreement (for example) to convey fifty acres may, for the sake of justice and equity, be construed to mean a contract to convey one hundred, would be to repeal the statute of frauds and to give effect to a simple verbal agreement to sell land. Where, however, the contention of the complainant is that something which is actually embraced in the writing was not intended to be included therein, to *22 suffer him to show this, is not to enforce a .parol contract in relation to.land; it is simply to prove that a written contract did not embrace all that on its face it appeared to include. Such was the actual state of the case in Gillespie v. Moon.”

It may be remarked that, in most of the. States where such relief is granted, the doctrine of part performance is recognized, and the proof required is but little short of that which is necessary to enforce a contract upon that ground.

In North Carolina, so far from correcting such executory contracts, within the statute, so as to enlarge their terms, the tendency of our decisions is to confine such corrective relief to executed contracts alone. We have been able to find no decision in point, but the words of Hall, J., in Newsom v. Bufferlow, 1 Dev. Eq., 379, strongly show the disinclination of the Court to depart from the statute, except upon the most imperative demands of justice and equity.

The learned Judge says: “ It is altogether unnecessary to enquire in this case how far courts of equity have gone in carrying into effect written executory contracts, or varying them by parol evidence. Suffice it to say, that the reason why they have declined giving relief in many such cases, is that the plaintiff had a remedy at law. That reason is not applicable to executed contracts. In those cases the plaintiff has no remedy at law, and unless a court of equity will give relief, he can have no redress.”

This distinction between executory and executed contracts is thus clearly put by Adams’Eq., 171: “ Where landisthe subject of the erroneous instrument, the reformation of an executed conveyance is not precluded by the statute of frauds,for otherwise it would be impossible to give relief. But it does not appear that where the defendant has insisted on the benefit of the statute, the Court has ever reformed * * * * an executory agreement on parol evidence, and specifically enforced it.”

*23 Land is regarded as such a high species of property that exceptional safeguards, have been devised for'the preservation and security of its title, and these should not be departed from, unless such departure is absolutely necessary to sub-serve the ends of justice. Under the former system, the equitable relief we have mentioned was administered by the trained minds of learned Judges, sitting as chancellors, who appreciated the grave evils which the statute was designed to prevent, and who gave full effect to the rule which required the clearest and most cogent testimony. Even then the relief in this State was confined, it seems, to executed contracts, and surely there is nothing in the new method oí trying equitable issues which encourages us to leave the old moorings and venture upon a sea of trouble, confusion and insecurity.

On the ground of necessity, we correct conveyances by adding clauses of defeasance and words of inheritance.

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10 S.E. 138, 104 N.C. 16, Counsel Stack Legal Research, https://law.counselstack.com/opinion/davis-v-ely-nc-1889.