Ellinghouse v. Hansen Packing Co.

213 P. 1087, 66 Mont. 444, 1923 Mont. LEXIS 43
CourtMontana Supreme Court
DecidedMarch 19, 1923
DocketNo. 5,074
StatusPublished
Cited by13 cases

This text of 213 P. 1087 (Ellinghouse v. Hansen Packing Co.) is published on Counsel Stack Legal Research, covering Montana Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Ellinghouse v. Hansen Packing Co., 213 P. 1087, 66 Mont. 444, 1923 Mont. LEXIS 43 (Mo. 1923).

Opinion

MR. JUSTICE HOLLOWAY

delivered the opinion of the court.

In his complaint plaintiff alleged that on February 4, 1921, he sold and delivered to defendant twenty-four head of cattle at the agreed price of $1,813.79, and that defendant failed and refused to pay for the same. By its answer the defendant admitted that plaintiff sold and delivered to it the twenty-four head of cattle described in the complaint, but denied that there was anything due on the purchase price, “as more fully appears in the affirmative defenses and counterclaims hereinafter set forth.” It then set forth two counterclaims. By the first it alleged that on January 20, 1919, plaintiff contracted to sell and deliver to it 150 head of “strictly fat two and three year old steers” at $13.50 per ewt., the cattle to be delivered at Butte between April 1 and April 10, 1919; that defendant paid plaintiff $1,000 as part of the purchase price; that plaintiff failed to deliver or tender cattle of the hind or quality specified, and failed and refused to refund the $1,000 or any part thereof. In the second counterclaim defendant set forth the same facts and alleged that, by reason of plaintiff’s failure to deliver the hind and quality of cattle mentioned, defendant lost profits amounting to $4,221.68.

In reply plaintiff admitted that he entered into the contract of January 20, 1919, that he received from defendant $1,000 on account of the purchase price, and that he had not repaid any part of it. All other allegations of each counterclaim were denied.

The trial of the cause resulted in a general verdict for plaintiff for the amount demanded, and judgment was entered thereon. From this judgment and from an order denying a new trial defendant appealed.

So far as the verdict finds for the plaintiff upon his cause of action and against the defendant upon its second counterclaim, no fault is found with it. These appeals present the defendant’s contention that it was entitled to recover upon its first counterclaim and was entitled to have the amount thereof [446]*446set off against the amount due to plaintiff for the twenty-four head of cattle. The court, at the instance of the plaintiff, instructed the jury that, if they found that plaintiff tendered to defendant the cattle of the kind and quality described in the contract of January 20, 1919, and that defendant refused to accept the same, the defendant would not be entitled to recover the $1,000, or any part thereof. At the instance of the defendant, the court instructed the jury that, if they found that the cattle tendered by plaintiff were not of the kind or quality described in the contract of January 20, 1919, then defendant would be entitled to recover the $1,000 with interest thereon from the date of payment.

The court refused defendant’s offered instruction No. 16, to the effect that from the amount to which plaintiff was entitled to recover for the twenty-four head of cattle there should be deducted $1,000, with interest from January 20, 19-19. There was not any evidence that plaintiff was damaged by reason „ of defendant’s refusal to accept the 150 head of cattle, so that the refusal of the court to give defendant’s offered instruction No. 16 fairly presents the question now urged upon this court.

The general verdict was equivalent to a finding in favor of [1] plaintiff upon his cause of action (City of Butte v. Mikosowitz, 39 Mont. 350, 102 Pac. 593) and a, finding against the defendant upon each of its counterclaims (Pure Oil Co. v. Chicago, M. & St. P. Ry. Co., 56 Mont. 266, 185 Pac. 150), or, in other words, it was a finding that plaintiff complied fully with the terms of the contract of January 20, 1919, and that defendant was guilty of a breach of that contract in refusing to accept the cattle tendered. Since there is not any contention made that the evidence is insufficient to sustain the finding, it must be accepted as importing verity.

The defendant’s first counterclaim is in effect a complaint by [2] defendant against the plaintiff for the recovery of the $1,000 paid as a part of the purchase price of the 150 head of cattle, and the question for determination may be stated as follows; Is a purchaser who has paid a part of the purchase [447]*447price and then refuses to complete the transaction entitled to recover what he has advanced ? At common law the authorities with singular unanimity answered the inquiry in the negative. In Ketchum v. Evertson, 13 Johns. (N. Y.) *359, 7 Am. Dec. 384, the New York court said: “It may be asserted, with confidence, that a party who has advanced money, or done an act in part performance of an agreement, and then stops short, and refuses to proceed to the ultimate conclusion of the agreement, the other party being ready and willing to proceed and fulfill all his stipulations, according to the contract, has never been suffered to recover for what has been thus advanced or done.” In Hansbrough v. Peck, 5 Wall. 497, 18 L. Ed. 520 [see, also, Rose’s U. S. Notes], the supreme court of the United States announced the rule in practically the same language, as follows: “And no rule in respect to the contract is better settled than this, that the party who has advanced money, or done an act in part performance of the agreement, and then stops short and refuses to proceed to its ultimate conclusion, the other party being ready and willing to proceed and fulfill all his stipulations according to the contract, will not be permitted to recover back what has thus been advanced or done.” The rule has been recognized and enforced by this court in the following cases: Perkins v. Allnut, 47 Mont. 13, 130 Pac. 1; Clifton v. Willson, 47 Mont. 305, 132 Pac. 424; Fratt v. Daniels-Jones Co., 47 Mont. 487, 133 Pac. 700; Donlan v. Arnold, 48 Mont. 416, 138 Pac. 775; Suburban Homes Co. v. North, 50 Mont. 108, Ann. Cas. 1917C, 81, 145 Pac. 2.

Counsel for defendant urge that the rule should not be enforced with the same vigor when applied to contracts for the sale of personal property as when applied to contracts for the sale of real estate, but there is not any merit in this contention. The rule was applied to a contract for the sale of personal property in Clifton v. Willson, above, and was recognized as applicable to such a contract by the supreme court of Oregon in Hanley v. Combs, 48 Or. 409, 87 Pac. 143. The rule as applied to contracts for the sale of personal property is stated in 35 [448]*448Cyc. 605, as follows: “The buyer cannot recover the price paid, but will forfeit his advance payments if he wrongfully refuses to carry out the contract of sale, either by refusing to make deferred payments or wrongfully refusing to receive the goods when tendered, the seller being ready and willing to perform on his part.”

The rule applies to contracts generally and the obvious reason for its existence is that it is the policy of the law to foster the observance of contracts, and not to offer a premium for their violation. Since by the verdict it has been determined that plaintiff was without fault, and that defendant was guilty of a breach of the contract in refusing to accept the cattle tendered, it follows that defendant must now predicate its right to recover upon its own wrongful act, and this it may not do. (Gibbons v. Hayden, 3 Kan. App. 38, 44 Pac. 445.)

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Bluebook (online)
213 P. 1087, 66 Mont. 444, 1923 Mont. LEXIS 43, Counsel Stack Legal Research, https://law.counselstack.com/opinion/ellinghouse-v-hansen-packing-co-mont-1923.