Dee v. Collins

15 N.W.2d 883, 235 Iowa 22, 1944 Iowa Sup. LEXIS 468
CourtSupreme Court of Iowa
DecidedOctober 17, 1944
DocketNo. 46542.
StatusPublished
Cited by20 cases

This text of 15 N.W.2d 883 (Dee v. Collins) 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
Dee v. Collins, 15 N.W.2d 883, 235 Iowa 22, 1944 Iowa Sup. LEXIS 468 (iowa 1944).

Opinion

Garfield, J.

The property involved is a house and lot in Waukon occupied by plaintiff as his home. - The contract was made December 11, 1940, between defendant Robert A. Collins and plaintiff. The purchase price was $1,800, of which plaintiff paid $350 in cash. The contract provided that within fifteen days the vendor would convey the property by warranty deed free of all liens and furnish abstract of title showing good merchantable title. The vendor also agreed to have the premises surveyed and platted and have “proper official plat” recorded. (The property is part of a larger tract then owned by the vendor.) The contract further provided that the remaining $1,450 of the purchase price was to be paid at the time of delivery and acceptance of the deed, in the form of two promissory notes, one for $1,000, for five years at five per cent interest, the other for $450, for three years at four per cent interest, each secured by a mortgage on the premises. When the contract was made, plaintiff was in possession under a lease from the mother of defendants, who are brother and sister.

Plaintiff’s petition against Robert A. Collins for specific performance was filed on September 1, 1942. On April 7, 1943, plaintiff amended his petition by alleging that defendant Robert A. Collins had deeded the property to Mary E. Collins on March 9, 1942, that the rights of the grantee were subject to plaintiff’s rights under his contract,’ and asking specific performance also as against Mary E. Collins. On May 3, 1943, plaintiff again amended his petition by alleging that defendants had wrongfully shut off the water supply to the premises and asking that they be required to restore such water supply. Defendants answered by admitting the execution of the contract but alleging, among other matters, that plaintiff had abandoned the contract.

Upon the trial, at the conclusion of plaintiff’s evidence, defendants moved to dismiss plaintiff’s petition principally on the grounds that plaintiff had failed to show he had no adequate *24 remedy at law and that he made no tender before bringing suit. The motion was overruled and defendants’ counsel called his first witness. Plaintiff’s counsel then objected to the offer of any evidence by defendants on the ground that by moving.to dismiss defendants were precluded from offering testimony, that the legal effect of defendants’ motion to dismiss was to rest their case. Plaintiff’s counsel asked to submit authorities to the court in support of his contention and the trial was recessed.

A week later, and before the court had passed on plaintiff’s contention that defendants had no right to offer evidence, defendants’ counsel asked the court to reopen the case to permit, the offer of testimony, if defendants’ motion for dismissal constituted a closing of defendants’ case. On December 27, 1943, the trial court entered decree which “finds, orders and rules that on October 12, 1943, plaintiff and defendants both rested their case.” (October 12th is the date plaintiff’s evidence was concluded and defendants moved for a dismissal.) The decree also overrules defendants’ motion to reopen the case and awards plaintiff specific performance.

I. Defendants contend the decree should be reversed because plaintiff failed to show the inadequacy of his remedy at law for breach of contract. The contention is without merit. The granting of specific performance of a contract to convey real estate does not depend upon the existence of special facts showing the inadequacy of the remedy at law in a particular case. -Courts assume that money damages do not constitute an adequate remedy for the breach of a real-estate contract and grant specific performance without an actual showing of inadequacy of the legal remedy. Unless the consideration is inadequate or there is some other equitable reason for denying specific performance, a party to a land contract is as much entitled to this form of relief as to damages at law. Western Securities Co. v. Atlee, 168 Iowa 650, 659, 151 N. W. 56; 49 Am. Jur. 107, 108, section 92; 58 C. J. 1024, section 233; id. 1028, 1029, section 239; annotation 65 A. L. R. 7, 40.

II. We are asked to reverse because plaintiff did not tender performance prior to the commencement of suit. There is some conflict of authority generally on the necessity of a tender *25 by the vendee prior to his bringing suit for specific performance. 49 Am. Jur. 166, section 143; 58 O. J. 1081, section 342. See Wood v. Howland, 127 Iowa 394, 398, 101 N. W. 756. Here, however, it is clear that plaintiff’s failure to tender performance on his part prior to instituting suit is not fatal to his right to relief.

In his petition plaintiff alleged he was ready and willing to perforin and that he “does hereby tender performance of his part of said contract.” Soon after the commencement of the trial plaintiff made a written tender in cash, accompanied by the money, of the amount he contended was unpaid on the contract and also tendered the two notes and mortgages executed by him and his wife, which the contract provided should pay the balance of the purchase price, giving defendants the option to accept either the cash or the notes and mortgages. Under the facts here, the offer in the petition, followed by the written tender, was timely.

As stated, the contract provided that within fifteen days the vendor would furnish plaintiff a warranty deed and an abstract showing merchantable title. No deed or abstract was ever furnished plaintiff. Time of performance by the vendee was not made of the essence of the contract. Plaintiff could hardly be expected to execute and deliver mortgages for the balance of the purchase price, containing the usual covenants, until the vendor transferred the title to him or at least was ready to do so. 58 C. J. 1081, 1082, section 342; annotation 79 A. L. R. 1240.

Aside from the above, however, there are two reasons why plaintiff was not required to tender performance prior to commencing suit. First, the vendor did not have good title. There were liens against the premises. Indeed, a mortgage against the property was foreclosed and plaintiff paid rent on it, presumably as required by the court, to a receiver appointed in the foreclosure. The vendor’s inability to perform rendered unnecessary a tender of performance by plaintiff prior to bringing suit. 49 Am. Jur. 167, section 144; annotation 79 A. L. R. 1240, 1241. In the second place, plaintiff was excused from tendering performance before' instituting suit by the vendor’s conveyance to his sister, which placed it beyond his power to perform his contract with plaintiff. McWhirter v. Crawford, 104 Iowa 550, 554, *26 72 N. W. 505, 73 N. W. 1021, and eases cited; 49 Am. Jur. 167, section 144; annotation 79 A. L. R. 1240. See, also, as tending to support our conclusion on this branch of the case, Braig v. Frye, 199 Iowa 184, 189, 199 N. W. 977; Conner v. Baxter, 124 Iowa 219, 228, 99 N. W. 726; Veeder v. McMurray, 70 Iowa 118, 121, 29 N. W. 818; Hopwood v. Corbin, 63 Iowa 218, 222, 18 N. W. 911.

III. Defendants make an objection to the. amount tendered by plaintiff which we think must be sustained. The amount of cash and the amount of the notes and mortgages tendered was $1,229 rather than $1,450. Plaintiff claimed the right to deduct $221 from the $1,450 remaining unpaid on the contract because of rent paid by him to the receiver in the mortgage foreclosure above referred to.

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Bluebook (online)
15 N.W.2d 883, 235 Iowa 22, 1944 Iowa Sup. LEXIS 468, Counsel Stack Legal Research, https://law.counselstack.com/opinion/dee-v-collins-iowa-1944.