Duggan v. Krevonick

192 S.E. 737, 169 Va. 57, 1937 Va. LEXIS 156
CourtSupreme Court of Virginia
DecidedSeptember 23, 1937
StatusPublished
Cited by3 cases

This text of 192 S.E. 737 (Duggan v. Krevonick) is published on Counsel Stack Legal Research, covering Supreme Court of Virginia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Duggan v. Krevonick, 192 S.E. 737, 169 Va. 57, 1937 Va. LEXIS 156 (Va. 1937).

Opinion

Eggleston, J.,

delivered the opinion of the court.

In the fall of 1934 Charles Duggan, the husband of the appellant, owned fifteen acres of land on the Tappahannock highway, in Hanover county, on which were located a gas station, restaurant, or roadhouse, and a swimming pool, commonly known as “Duggan’s Inn.”

Duggan having defaulted on a deed of trust covering the property, it was foreclosed and the property purchased by one R. A. Ricks, who subsequently, in November, 1934, conveyed it to Joe and Rosa Krevonick.

Before the foreclosure sale Kate Duggan had been negotiating with the Krevonicks for the purchase of the property in the event that they, the Krevonicks, acquired it. These negotiations continued after the sale and resulted in the execution of the following writing, which is the subject of this litigation:

“This contract, made and entered into this the 1st day of January, 1935, by and between Joe Krevonick and Rosa Krevonick, husband and wife, parties of the one part and Kate Duggan, party of the other part.

“The parties of the first part own what is known as ‘Duggan’s Inn’ in Hanover County, Virginia.

“It is convenanted and agreed that the parties of the first part do hereby give to the party of the second part an [61]*61exclusive option to repurchase or purchase said property at the price of $6,000.00 provided the party of the second part provides with the terms hereof within six months from the date hereof.

“If the party of the second part hereto on or before six months from the date hereof pay the sum of $500.00 in cash and interest on said $6,000.00 at the rate of 5% per annum, payable every three months, the insurance on said property, then and in that event the parties of the first part will convey to the said Kate Duggan with General Warranty of title the said property, known as ‘Duggan’s Inn’ on the following terms, to-wit: Interest to be payable every three months at the rate of 5% per annum, and the remaining of the principle of $5,500.00 to be payable three years after date, with the privilege of renewal.

“Witness the following signatures and seals:

“JOE KREVONICK (SEAL)

“ROSA (KREVONICK (SEAL)

“KATE DUGGAN (SEAL) ”

Kate Duggan had been in possession of the premises since the foreclosure sale and continued her occupancy after the execution of the contract. The Krevonicks procured a fire insurance policy of $4,000 on the buildings on the property and the premium thereon was paid by Mrs. Duggan. About the middle of April, 1935, Mrs. Duggan paid to the Krevonicks the interest instalment of $75 due on the first of the month.

In the latter part of April, 1935, the insurance company notified the Krevonicks that it was unwilling to carry more than $2,000 fire insurance on the buildings. Just why this reduction in the insurance was made does not satisfactorily appear from the record. The Krevonicks claim that Mrs. Duggan’s occupancy of the premises constituted an unsatisfactory risk to the insurance company. Mrs. Duggan, on the other hand, claims that the reduction in insurance was due to the lack of fire protection and to the nature of the business conducted on the premises. Suffice it to say that neither contention is supported by legal evidence.

[62]*62At any rate, on April 23, 1935, David Nelson Sutton, Esq., an attorney at West Point, Virginia, acting for the Krevonicks, wrote Mrs. Duggan of this reduction in the insurance. This letter further stated that she must either secure additional insurance in the sum of $2,000 on the buildings, or increase her cash payment by that amount, or else vacate the property.

Mr. Sutton’s letter was referred by Mrs. Duggan to T. 0. Campbell, Esq., her attorney, who, on May 1, wrote Mr. Sutton that under his (Campbell’s) interpretation of the contract Mrs. Duggan was not obligated to procure any amount of insurance on the property but only “to pay the insurance premium when and as insurance has been secured by the Krevonicks.”

Efforts to procure additional insurance on the buildings were unavailing and the Krevonicks demanded possession of the property. Mrs. Duggan refused to surrender possession and notified the Krevonicks that she would exercise her option to purchase the property, in accordance with the terms of the contract, on or before July 1, 1935.

On June 27, 1935, Mrs. Duggan tendered to the Krevonicks the sum of $575 in cash, covering the cash payment of $500 required by the contract and an interest instalment of $75 due on July 1, together with a note in the principal sum of $5,500 payable three years after date to the order of the Krevonicks, and the appropriate interest notes, payable quarterly, for the deferred portion of the purchase price. These notes were duly signed by Mrs. Duggan and were secured by a deed of trust of even date on the property, which was likewise tendered. This deed of trust was in the usual form except that the contract was therein set out in extenso, and instead of a covenant to keep the buildings insured Mrs. Duggan covenanted to “pay the premiums for any amount of insurance that the said Joe and Rosa Krevonick may secure on said property in accordance with the terms of the contract hereinabove transcribed as a part of this deed of trust.”

[63]*63Having tendered the above cash, notes, and deed of trust, Mrs. Duggan demanded of the Krevonicks a deed conveying the property to her. This was refused.

On July 12, 1935, the Krevonicks instituted an action of unlawful detainer against Mrs. Duggan before the trial justice of Hanover county for possession of the premises. Thereupon Mrs. Duggan filed her bill in the court below praying that the Krevonicks be enjoined and restrained from prosecuting the action of unlawful detainer, and, further, that they be required to specifically perform the alleged written contract whereby they hád agreed to sell and convey the property to her. Upon a review of the depositions taken on behalf of the respective parties the trial court entered a decree in general terms denying the prayer of the bill and dismissing the suit. From this decree this appeal has been taken.

The first contention of the Krevonicks is that their signatures to the alleged contract were procured by fraud, while they were under the influence of intoxicants and in no condition to protect their rights. Furthermore, they claim to be illiterate and did not understand the purport of the instrument which they signed; that they were assured by Mrs. Duggan’s attorney, Mr. Campbell, who prepared the document, that it “was merely a piece of paper and had no binding effect on them.”

The evidence discloses that while the contract was dated January 1, 1935, it was actually written and executed on January 8th, under the following circumstances:

About eight o’clock in the evening Mrs. Duggan, her husband, and their attorney, Mr. Campbell, called at the home of the Krevonicks. The matter of the purchase of the property and the terms of sale were discussed at some length. While both of the Krevonicks took part in the negotiations Rosa Krevonick was the principal negotiator for her husband and herself. Mr. Campbell brought in a typewriter and made several drafts of the proposed contract before he was able to satisfy the Krevonicks. Finally the [64]*64instrument, in the form in which it has been above set out, was executed by the parties.

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Bluebook (online)
192 S.E. 737, 169 Va. 57, 1937 Va. LEXIS 156, Counsel Stack Legal Research, https://law.counselstack.com/opinion/duggan-v-krevonick-va-1937.