Dorsey v. Campbell

1 Md. Ch. 356
High Court of Chancery of Maryland·Decided January 14, 1825·Published

Opinion

Bland, Chancellor.

The arguments of counsel having been heard in this case, the proceedings were read and considered.

It appears, that Campbell & Ritchie being seized of two tracts of land, sold them, clear of all incumbrances, to Dorsey, for the sum of fourteen hundred and sixty-two dollars and fifty cents, to bear interest from the eighth day of June, 1815, when the purchaser was put into possession, until paid. So far the case admits of no difficulty.

As to the manner in which Dorsey was to make payment to Campbell & Ritchie, the receipt or agreement of the 12th of July, 1816, is expressed in these words: “ And for which they are to be paid in bonds, notes, and other claims endorsed by C. Dorsey, Esq.” And the assignment of the same date, made by Dorsey, is expressed in these words : “I hereby assign unto Henry Chapman, Esq., for the use of Campbell 4r Ritchie, the above causes of action, which are supposed to be correct, with an understanding and agreement, that I am responsible for their eventual solvency.” The general expressions, “to be paid in bonds, notes, and other claims,” without any distinct specification, can only be understood as an indication of the character of the fund which was to be placed by the plaintiff under the legal command of the defendants to the full amount of the purchase money. If Dorsey had failed or refused to place in the hands, or at the disposal of Campbell if Ritchie, choses in action to the full amount of the purchase money, then he would have been liable for the whole, or pro tanto, on the ground of a non compliance with his contract. If there had been nothing added to this general specification of the fund, out of which payment was to be made, the contract might have been considered in the light of an exchange or barter of one article of value for another, deemed to be of equal value, — a conveyance of land in consideration of an assignment of choses in action only, without the further responsibility of the assignor.

But the contract informs us, that the payment was to be made, “ in bonds, notes, and other claims, indorsed by C. Dorsey, Esq.;” and also that Dorsey expressly says, “ I am responsible for their eventual solvency.” The fair, clear sense of these expressions removes every difficulty. Dorsey was to have the privilege of [358] paying out of a designated fund, to be placed in the hands, and at the disposal of Campbell & Ritchie; but he was to warrant, that, with due and proper diligence on their part in endeavouring to make it available, it would be ultimately productive to the whole amount of the purchase money. It does not appear, that Campbell & Ritchie are chargeable with any want of diligence in endeavouring to collect the money due on the choses in action transferred to them, (a)

It would seem, from the expressions of the contract, that Dorsey was to be allowed a reasonable time to assign, and deliver to Campbell & Ritchie, or their agent, choses in action-, out of which they were to collect the amount stipulated to be paid to them; but that time has elapsed; and indeed, Dorsey, by bringing this suit has virtually waived the privilege of referring the defendants for payment to any choses in action in addition to those he had already transferred to them.

This case, then, stands thus : — Dorsey must be charged with the sum of fourteen hundred and sixty-two dollars and fifty cents, with interest from the eighth day of June, eighteen hundred and fifteen; first deducting therefrom the amount of the incumbrances on the land; that is, the judgment against Anderson, the former owner, and also the taxes due when Dorsey got possession. Dorsey Is then to be credited with the sums actually received by Campbell & Ritchie from the choses in action transferred to them. And, since the object of this mode of payment was merely to prevent Dorsey from being called on until Campbell If Ritchie had used every proper exertion to make the specific funds available, Dorsey is only to be accredited with the net proceeds of the choses in action received by Campbell & Ritchie, or their attorney, after allowing every legal discount or set off, and expense of collection on each one. No expense or charge, however, is to be allowed for paying over any money so received, from the attorney of Campbell & Ritchie to them. But the credit is to be given to Dorsey as a payment on the day on which such proceeds were received, either by Campbell & Ritchie, or their attorney. If any of the debtors chargeable by the choses in action assigned by Dorsey, have been ascertained to be wholly or partially insolvent, he must be charged to that amount.

With these explanations and determinations as to the principles [359] of this case, it is hereby referred to the auditor, with directions to state an account accordingly, preparatory to a final decree.

In obedience to this order, the auditor, on the 16th of September, 1825, made a report, in which lie stated the amount of the balance then due from the plaintiff to the defendants; to which the plaintiff filed no exceptions.

29th March, 1826. — Bland, Chancellor. — This case standing ready for hearing, and having been submitted, the proceedings were read and considered.

This is a bill for a specific performance of a contract between the plaintiff and the defendants. From the agreement, as stated and admitted, it appears, that each party was bound to perform something for the benefit of the other. The plaintiff bound himself to pay to the defendants the whole amount of the purchase money; and the defendants bound themselves, on being so paid, to convey to the plaintiff the two specified parcels of land. It now appears that a part of the purchase money is still due; and that no conveyance of the legal title has been yet executed and delivered. In cases of this kind, according to the ancient course of the court, it was necessary to file a cross-bill, in order that each party might be decreed to perform that to which he had bound himself. But this circuitous and expensive course has, of late, been dispensed with in all cases where the plaintiff, by his bill, offers to perform the agreement;, and it is admitted, or set out in the answer, and proved as thus set forth by the defendant. No cross-bill has for some time past been deemed necessary, either in England or in Maryland, in such cases ; but a decree is passed in favour of each party for that to which he is entitled; upon the ground, that the whole matter in controversy has thus been well and sufficiently brought before the court, put in issue, and considered by such an original bill, answer and proofs.(b)

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Dorsey v. Campbell, 1 Md. Ch. 356 (Md. Ct. App. 1825).

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