Depies-Heus Oil Co. v. Sielaff

16 N.W.2d 386, 246 Wis. 36, 1944 Wisc. LEXIS 399
CourtWisconsin Supreme Court
DecidedOctober 10, 1944
StatusPublished
Cited by13 cases

This text of 16 N.W.2d 386 (Depies-Heus Oil Co. v. Sielaff) is published on Counsel Stack Legal Research, covering Wisconsin Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Depies-Heus Oil Co. v. Sielaff, 16 N.W.2d 386, 246 Wis. 36, 1944 Wisc. LEXIS 399 (Wis. 1944).

Opinion

Martin, J.

By way of defense, defendant alleges that on the 11th day of May, 1943, she elected to terminate and rescind the contract for the reason that plaintiff had on numerous occasions throughout the life of said contract breached same by failure and refusal to seasonably pay the rent stipulated in the lease. Defendant further alleges that without her knowledge, she not being familiar with business transactions and particularly with leases of property and documents of the nature of the lease in question, plaintiff caused to be inserted in the lease the following provision:

“If at the expiration of the term of this lease, or any renewal thereof, the premises herein described are leased or sold to some third party, the said premises shall be leased or sold subject to the following provision :
“If the premises herein described are used in any manner for the sale of gasoline or oil or their by-products during a period not exceeding twenty years from the date of said instrument of such lease or sale, then and in such event, the lessee or vendee shall sell only the products in which the Depies-Heus Oil Company shall deal.”

Defendant claims that the provisions above quoted were not called to her attention at the time she signed the lease. She further claims that said provisions rendered the contract void as being against public policy and in restraint of trade, and that said provisions were without consideration. Defendant denies that plaintiff is without an adequate remedy at law, and further denies that the plaintiff has done equity or has offered to do equity in respect to the performance of the terms of the lease.

*41 It will serve no useful purpose to discuss the evidence. Factual issues have been decided adversely to the defendant. The findings of fact are sustained by the evidence, and this court is not at liberty to change the findings of the trial court unless same be against the great weight and clear preponderance of the evidence. This is an elementary rule which requires no citation of authorities.

Appellant argues that the lease is not sufficiently clear, definite, and certain as to be enforceable by specific performance in a court of equity. We find nothing ambiguous or uncertain in the provisions of the lease. The form is one very generally used in the business world. Appellant cites several cases to the proposition that specific performance is not a matter of right, but is a matter that rests in the sound discretion of the court, and that the court will not grant such relief unless satisfied under all the circumstances of the case that the claim is fair and the contract is equal and founded upon a good consideration. We must assume that the trial court had this elementary principle in mind in making its decision.

Appellant cites Hopkins v. Gilman, 22 Wis. 454 (*476), and Schneider v. Reed, 123 Wis. 488, 101 N. W. 682, to the point that an agreement to arbitrate will not be specifically enforced. In the Hopkins Case, supra, page 457 (*479), the court said:

“The contract sought to be enforced is essentially incomplete'in a most important particular, as the amount of rent to be paid depends upon an appraisal of the premises to be made by arbitrators chosen by the parties. The amount of rent to be paid is of the very essence of the contract. The parties have not agreed upon the amount, but they have agreed upon a manner by which the amount is to be ascertained. Can the court supply the defect in the contract, or decree that the parties shall go on and choose arbitrators to make the appraisal? And if the court enforces a performance of the contract, does it not, in substance and effect, enforce an agreement to arbitrate? The contract is certainly incomplete as *42 it now stands, and resort must be had to the action of arbitrators to supply material conditions in it, which the parties did not agree upon. The judgment directs that the leased premises be appraised in the manner specified in the lease, and that thereupon a renewed lease be executed at an annual rent of eight per cent upon the appraised value. What is this but enforcing an agreement to arbitrate?”

The court then quotes from Greasan v. Keteltas, 17 N. Y. 491, 496, as follows:

“It is well settled that courts of equity will never entertain a suit to compel parties specifically to perform an agreement to submit to arbitration.” Citing cases.

. In the Schneider Case, supra, page 497, the parties' had agreed to submit to arbitration the price to be paid for certain land. The court said:

“Piad this oral agreement been sufficiently definite in its terms, it could doubtless have been specifically enforced in equity. But the difficulty is that no price for the land was agreed upon. Under the most favorable construction of the evidence it appears that the only arrangement as to price was that the company would pay what the land was worth, and that, if the parties could not agree, the price was to be settled by arbitration. Thus one of the essential elements of the contract was left wholly uncertain, and it will not be enforced. Eckel v. Bostwick, 88 Wis. 493, 60 N. W. 784. An agreement to arbitrate will not be specifically enforced. Hopkins v. Gilman, 22 Wis. ,476.”

These two cases are out of harmony with the majority rule. Arbitration clauses in contracts are made 'specifically enforceable by sec. 298.01, Stats. The rule is thus stated in 49 Am. Jur. pp. 36, 37:

Sec. 23: “. . . A contract is considered to be sufficiently definite and certain to be specifically enforceable if it contains provisions which are capable in themselves of being, reduced to *43 certainty. . . . The existence within the contract of a method or means by which uncertain terms may be made certain renders the contract sufficiently certain to be specifically enforceable. . . .
Sec. 24: “The fact that some of the terms of a contract are left to future determination does not preclude specific enforcement of the contract upon the ground of indefiniteness or uncertainty, where the contract itself provides the method or means by which such uncertain terms'may be made certain, as, for example, where price is to be fixed or determined by third parties, or by the highest price which another offers or is willing tO' pay for the premises. . . .”

In Kipp v. Laun, 146 Wis. 591, 604, 131 N. W. 418, the court said:

“There is a distinction to be observed with reference to subordinate or incidental portions of an agreement and the whole body or purview of the contract. Where a contract is definite in the main features thereof and in most of its details, but one item is left in such condition that an inquiry of reasonable value or reasonable time for performance is es-. sential, that will not defeat the whole contract or bar specific performance.” See cases cited.

2 Page, Contracts (Supp.), p. 1844, sec. 2615, states the rule as follows:

“. . .

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16 N.W.2d 386, 246 Wis. 36, 1944 Wisc. LEXIS 399, Counsel Stack Legal Research, https://law.counselstack.com/opinion/depies-heus-oil-co-v-sielaff-wis-1944.