Durham v. Hiatt

26 N.E. 401, 127 Ind. 514, 1891 Ind. LEXIS 251
CourtIndiana Supreme Court
DecidedJanuary 13, 1891
Docket14,713
StatusPublished
Cited by11 cases

This text of 26 N.E. 401 (Durham v. Hiatt) is published on Counsel Stack Legal Research, covering Indiana Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Durham v. Hiatt, 26 N.E. 401, 127 Ind. 514, 1891 Ind. LEXIS 251 (Ind. 1891).

Opinion

McBride, J.

This was a suit by appellee to recover of appellant the value of services alleged to have been rendered by appellee under an oral contract, and the only question presented for consideration by this court is, whether or not the contract is within the fifth clause of the first section of the statute of frauds. Section 4904, R. S. 1881.

The first paragraph of the complaint states the contract as follows:

“ The above named plaintiff, Harmon Hiatt, complains of the above named defendant, William H. Durham, and says, that in the year 1886 the plaintiff and the defendant made an agreement and contract as follows, viz.: That the plaintiff was to go to the State of Tennessee and take charge of all lands that he might buy in said State, and manage in the sale of all timber on the same, to sell all timber for the purpose to which it was best adapted, such as railroad ties, bridge timber, cooper stuff, and fire wood, and for this service the plaintiff and defendant were to divide the profits of all sales share and share alike. Then, after the timber was removed, the plaintiff was to have the land cut up into small tracts and sell the same to actual settlers, to be planted in fruits and vines and cultivated in tobacco; and if possible get a colony of European fruit and vine growers to buy or lease for twenty years or more all of tbe lands bought by the plaintiff for the defendant under the contract, and in all land sales, leases or rents the profits were to be equally divided. The said Durham was to furnish all the capital, and the plaintiff was to trade certain property that said Durham owned for the lands, at certain prices, and said Durham was then to furnish the money to pay the difference.” Thus far we quote the complaint.

It is then averred that plaintiff did go to Tennessee, pursuant to the terms of the contract, and did exchange much valuable property belonging to defendant for valuable lands in Tennessee, making very profitable exchanges, and also bought certain tracts of land under the contract, alleging [516]*516that he thereby acquired for defendant title to over 30,000 acres of valuable land. It is further averred that a part of defendant’s property thus exchanged was a nail factory at Greencastle, Indiana, said to be valued at $75,000, which plaintiff exchanged for 23,000 acres of land, and that while said trade was made under said contract there was, as to this particular trade, the additional agreement that defendant should pay plaintiff five thousand dollars for making the same.

It is further averred that plaintiff spent seven months making said trades, and buying said land, and that defendant waited until said trades were all made, and then refused to carry them out, or furnish the money to complete the same, and that plaintiff’s services were of the value of $5,-000, etc.

The second paragraph states the following as constituting the contract:

That in the year 1886 the defendant employed the plaintiff to purchase and trade for 35,592 acres of land in the State of Tennessee; that plaintiff was to trade the property belonging to defendant for said land, and to pay the difference in money; that defendant owned one nail factory at Greencastle, Indiana, which he valued at $75,000, and -fa of a livery stable in the city of Crawfordsville, Indiana, which he valued at $9,000, and 240 acres of land in Montgomery county, Indiana, valued at $15,000, and five lots at Indianapolis, Indiana, valued at $7,200, and .one house and lot in the city of Crawfordsville, Indiana, valued at $1,200; that all of the above property was placed by the defendant in the hands of the plaintiff to trade for lands in the State of Tennessee; that the plaintiff was to have enough money to buy the other lands, and that they were then to become partners and to use the land together, sell the timber and sell the lands and divide the profits together; that the plaintiff was to have full control of said property, cut and sell the timber, and sell the lands and divide the money after paying [517]*517back to defendant what he was out.” Plaintiff then avers full performance by him of the contract; that he bought and traded for the 35,592 ácres of land; that defendant agreed to all the purchases and trades, and agreed to make all necessary transfers, and furnish all necessary money to complete the transaction; that defendant’s money and property thus invested was of the value of $112,900, for which, by said trades and purchases, he acquired property worth $213,552, and which was, when this suit was commenced, reasonably worth $355,920. It is then averred that “ it was agreed between the plaintiff and the defendant that plaintiff was to have one-half of all the profits that were made out of said lands; that plaintiff was to take charge of said lands, control the same, sell the timber, rent the lands, and sell the same in small ti’acts.”

There are then some averments as to the character and location of the land, its proximity to shipping points, the character and value of the timber, etc.; that plaintiff spent three months buying and trading for it; that he complied with the contract, and was ready and willing, etc., but that defendant failed and refused to perform, and that plaintiff’s services were reasonably worth $10,000, etc.

We have quoted all the averments of each paragraph which purport to state the contract, or any of its terms, and have given an abstract of the remaining portions of the complaint.

Defendant demurred separately to each paragraph of the complaint, but the demurrers being overruled he failed to save the question by exception.

At the proper time he moved in arrest of judgment. His motion was overruled, and he excepted. He assigns as error :

1st. The complaint does not state facts sufficient to constitute a cause of action.

2d. The court erred in overruling appellant’s motion in arrest of judgment.

The first section of the statute of frauds, section 4904, R. [518]*518S. 1881, provides that: “No action shall-be brought * * Fifth. Upon any agreement that is not to be performed within one year from the making thereof.

“ Unless the promise, contract, or agreement, upon which such action shall be brought, or some memorandum or note thereof, shall be in writing, and signed by the party to be charged therewith,” etc.

As above stated, the only question presented to this court, and argued by counsel, is whether or not the contract sued on is within the foregoing provision of the statute of frauds.

It is not disputed that the averments of the complaint are sufficient, if an action can be maintained on such a contract as is here pleaded.

Where, by the terms of a contract, it is not to be performed within the year, or where it can not be performed within the year, according to the intent and understanding of the parties, as evidenced by its terms, such contract is within the statute, and an action can not be maintained upon it, Wilson v. Ray, 13 Ind. 1.

The law, however, is well settled in this State, that to bring a contract within this clause of the statute of frauds, it must affirmatively appear from its terms that its stipulations are not to be performed within a year after the time of making it. It has no application to a contract which may, or may not, be performed within a year. Hinkle v. Fisher, 104 Ind. 84, and cases there cited..

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Cite This Page — Counsel Stack

Bluebook (online)
26 N.E. 401, 127 Ind. 514, 1891 Ind. LEXIS 251, Counsel Stack Legal Research, https://law.counselstack.com/opinion/durham-v-hiatt-ind-1891.