Dolliver v. Elmer

260 N.W. 85, 220 Iowa 348
CourtSupreme Court of Iowa
DecidedApril 2, 1935
DocketNo. 42424.
StatusPublished
Cited by6 cases

This text of 260 N.W. 85 (Dolliver v. Elmer) 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
Dolliver v. Elmer, 260 N.W. 85, 220 Iowa 348 (iowa 1935).

Opinion

Richards, J.

On April 16, 1931, a land sale contract was entered into between the plaintiff and defendant. By its terms defendant agreed to sell plaintiff certain real estate for $20,000, of which plaintiff paid defendant $1,000 on the date of the contract, and the remainder of the purchase price was to be paid in cash, property, and mortgage back, on March 1, 1932, upon the delivery of good and merchantable title by defendant with an abstract showing same. The contract provided that the times of payment of said sums of money were of the essence and an important part of the contract, but contained no specific statements as to the right of forfeiture. Shortly before March 1, 1932, the title to the real estate defendant so agreed to sell was acquired by the Des Moines Joint Stock Land Bank, through a sheriff’s deed pursuant to a foreclosure of a mortgage against persons not parties to this action, previously holding the title. Previous to March 1, 1932, said Land Bank had entered into a contract to sell this real estate to defendant in the event there was no redemption in the foreclosure action, but on March 1, 1932, defendant had acquired no title thereto; his only interest being that which he had acquired by his contract to purchase from the Land Bank. Defendant did not acquire title until some time in December, 1932. Plaintiff claims that on March 1, 1932, he was ready, able, and willing to pay defendant the balance he had agreed to pay on that date, that is, $1,500 cash, and to convey to defendant certain Sioux City property, as part of the consideration as agreed in the contract in controversy, and claims that he then offered to carry out his agreements with defendant, but that defendant, having no title, was unable to perform, and on account of that fact the plaintiff has rescinded the contract and demanded the return of the $1,000 paid on the purchase price. The petition in equity in this action was filed December 23, 1932, to recover the $1,000 payment, and to *350 establish á vendee’s lien. On February 3, 1933, the defendant filed a cross petition praying specific performance of the contract against the plaintiff. The court dismissed both plaintiff’s petition and the cross petition, and entered judgment against plaintiff for the costs, from which decree this appeal was taken by plaintiff.

Defendant having been wholly unable to convey the land on March 1, 1932, because he did not have the title, there can be no doubt about the general proposition, that out of this situation there accrued to plaintiff the remedy of rescinding the contract and demanding the return of the purchase money he had paid. Wilhelm v. Fimple, 31 Iowa 131, 7 Am. Rep. 117; Nelson v. Chingren, 132 Iowa 383, 106 N. W. 936. But the defendant denies that plaintiff had the right to rescind the contract, first, because plaintiff was himself in default for not having tendered performance on his part, and for not having demanded performance on defendant’s part, and, second, because plaintiff leased the premises for 1932 and at all times kept possession of the lease and was in constructive possession of the land until the tender of performance by defendant on December 31, 1932, and, third, because no rescission was made or attempted by plaintiff. The determination of the correctness of these claims made by defendant is decisive of this case.

The record discloses that plaintiff at no time made a formal tender of the $1,500 payment agreed to be made on March 1, 1932, nor of a deed conveying the Sioux City property. As bearing thereon, we quote from Nelson v. Chingren, 132 Iowa 383, 385, 106 N. W. 936, 937:

“It is no doubt the general rule,' as applied to suits of this character, that the plaintiff must show, as a condition to his right to rescind and recover back, that, he has himself tendered or offered to perform. Such is the rule of the cases cited by counsel for appellant. Primm v. Wise, 126 Iowa 528, 102 N. W. 427; Claude v. Richardson, 127 Iowa 623, 103 N. W. 991. But this rule does not obtain in cases where, from all the facts, it is evident that a tender,’ if made; would have been unavailing. Thus, if the vendor has no title, and is therefore not in position to perform on his own part, he cannot complain that the vendee did not tender performance. Under such circumstances, a tender would be useless, and the law does not require the doing of a useless thing.”

*351 See, also, Voorhees v. Baier, 194 Iowa 1320, 191 N. W. 125. Following these authorities, it appears from the record before us that plaintiff was not required to make a formal tender, it being a conceded fact, known to plaintiff and defendant on March 1, 1932, that defendant had no title to convey. The parties admit having a conference on about that date concerning the contract, but the record contains a sharp conflict as to what occurred. Plaintiff testified that defendant stated he could not get a loan that was necessary to complete his purchase of the land from the Land Bank, and hence was unable to deliver title; that on account of this statement of fact by defendant, he, plaintiff, saw no necessity of making a formal tender although he had fully arranged to, and was able and in position to pay the $1,500 and convey the Sioux City property; that he had submitted to defendant for approval the Sioux City abstract of title in December, 1931, and in the same month had delivered to defendant plaintiff’s opinion as to the defects to be cured in the abstract of title to the land defendant had agreed to convey to plaintiff. On the other hand, defendant testified that on March 1, 1932, plaintiff said he was not ready to perform the contract, did not have and could not raise the money, and that plaintiff made the same statement again about a month later, and that plaintiff had never made any objection to the delay in defendant obtaining title from the Land Bank, all of which plaintiff denied. A consideration of the whole record leads to an acceptance of plaintiff’s testimony as having the greater weight, and in considerable measure this follows from the inconsistencies found in defendant’s version of the facts on and after March 1, 1932. Defendant claims plaintiff never demanded performance and never objected to the delay in defandant’s obtaining title. But it is uncontroverted that on April 1, 1932, the plaintiff by letter stated to defendant that the time was past for performance of contract and plaintiff assumed that defendant was still unable to secure a loan to acquire the land from the Land Bank, and in this letter plaintiff specifically requested the return of the $1,000 deposit, with interest. On April 23, 1932, plaintiff again wrote the defendant calling attention to the letter of April 1, asking for the return of the $1,000 deposit, stating that plaintiff did not understand why he had not heard from the defendant, stating that time for performance is long past, and, having not received anything for his money, the plaintiff is entitled *352 to its return, and asking that defendant remit. Again on May 20, 1932, is a letter from plaintiff to defendant requesting a return of the money because defendant has been unable to complete the deal as per the written agreement. Again, on July 25, 1932, plaintiff wrote defendant calling attention to the previous letters, stating that defendant is in default and is not giving plaintiff any value for the $1,000 paid, stating that demand has been made for that money, and that suit will be instituted to recover this sum if necessary.

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Bluebook (online)
260 N.W. 85, 220 Iowa 348, Counsel Stack Legal Research, https://law.counselstack.com/opinion/dolliver-v-elmer-iowa-1935.