Farmers' Loan & Trust Co. v. Hunt

16 Barb. 514, 1853 N.Y. App. Div. LEXIS 181
CourtNew York Supreme Court
DecidedDecember 5, 1853
StatusPublished
Cited by3 cases

This text of 16 Barb. 514 (Farmers' Loan & Trust Co. v. Hunt) is published on Counsel Stack Legal Research, covering New York Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Farmers' Loan & Trust Co. v. Hunt, 16 Barb. 514, 1853 N.Y. App. Div. LEXIS 181 (N.Y. Super. Ct. 1853).

Opinion

Edwards, J.

This action is brought upon a contract made by Rogers, one of the plaintiffs, with the defendant, for the sale of a tract of land. The contract is dated on the 1st day of November, 1842, and provides that the consideration money shall be paid in certain installments, and that, after all the payments shall be made as agreed by the parties, Rogers shall execute a warranty deed of the premises to the defendant. The action was commenced before all the payments had become due.

The defenses set up were: First, that Rogers had not performed that part of the contract in which he agrees that when two thousand dollars shall have been paid, he will give deeds of certain parts of the tract agreed to be sold; and second, that he had not caused Stanley-street to be continued and opened to the defendants’ north line, and that the defendants should be allowed the damages sustained by reason thereof, by way of recoupment. The justice before whom the cause was tried decided that that part of the contract on which the claim first set up by the defendant was founded, was so uncertain and unintelligible that no effect could be given to it, and this decision seems to have been acquiesced in; at least no objection was made to it upon the argument. In reference to the second claim of the defendant, the judge charged that inasmuch as this action was commenced before the last payment had become due, the defendant was not entitled to any recoupment in this action

It will be observed that no time is mentioned when Rogers is to cause Stanley-street to be continued and opened, and this can only be ascertained by reference to other parts of the contract, taken in connection with the act to be done.

The opening of the street, so far as we have the means of knowing, could be of no benefit to the defendant, except as incidental to his ownership of the land agreed to be conveyed to him; and, as he could derive no advantage from the performance of this part of the contract until he received, or was en[521]*521titled to receive a conveyance, so he could sustain no damage from its non-performance. It would seem, then, to be a reasonable inference, that the parties intended that the defendant should have the benefit of the incident when he was entitled to the benefit of the principal, that is, when he was entitled to a conveyance of the premises.

It is contended, however, on the part of the defendant, that in this case the law will infer that the parties intended that the street should be opened within a reasonable time after the making of the contract.

There are many cases in which, the parties having failed to agree upon a time of performance, the inference will and must be that they intended that the act agreed to be done should be performed within a reasonable time ; as where a party agrees to deliver an article of merchandise, or other property, at a particular place, and at a certain price, and no time of performance is mentioned, this rule of construction must be adopted, otherwise the contract could not be enforced. But is it necessary to resort to this rule when the time, though not mentioned, can, as in this case, be ascertained from the nature of the thing contracted to be done ?

But suppose that we adopt the rule of construction contended for; how, then, ought the ease to be presented to the jury ? It will certainly not be contended that the court should simply state that the parties must have intended that the act should be performed within a reasonable time; and the jury must say whether it was so performed. The judge at the circuit would be obliged to do more than this. It would be necessary for him to state the principles which the jury should adopt in ascertaining whether or not the act was done within a reasonable time. The rule on this subject which was laid down by Baron Alderson, in the case of Ellis v. Thompson, (3 Mees. & Welsb. 445,) is undoubtedly the proper one. He says that “ the correct mode of ascertaining Avhat reasonable time is, is by placing the court and jury in the same situation as the contracting parties themselves were in at the time they made the contract; that is to say, by placing before the. jury all those circumstances which [522]*522were known to both parties at the time the contract was made, and under which the contract itself took place.” If we apply this rule to the present case, it seems to me that the only instructions which the court could give to the jury, would be that they must ascertain the time wrhen the performance would be advantageous, and the non-performance injurious to the defendant, and must consider that as the reasonable time for performance intended by the parties; or, in other words, that in this case, the reasonable time within which the street, which was the mere incident to the land to be conveyed, should be opened, would be the time when the principal thing to which the incident was to be attached, was agreed to be conveyed. But suppose that according to the rule which should be laid down by the court, the jury would be obliged to infer that the street was to be made before the land was to be conveyed, what would be the rule of damage? The defendant not being the owner of the land, he could not sustain any more than a nominal injury; and of course his damages would be merely nominal. It seems to me, then, that according to any rule of construction which has been suggested, we are led to the conclusion which was adopted by the judge at the circuit, that before the last payment had become due, and the defendant had become entitled to a conveyance, he could not recoupe his damages.

There were two cases referred to upon the argument by way of analogy, but it seems to me that they cast but little light upon the question before us. In the case of Rogers v. Salmon, (8 Paige, 559,) the bill alleged that during the prevalence of the speculating mania which existed some years since, the defendant had1 been induced to purchase three small lots in a lithographic village at the price of $16,000; which lots were, at the time of filing the bill, of no value except for pasturage; and not worth more than one-sixth of the sum agreed to be paid for them. One-fourth of the purchase money had been paid, and a bond and mortgage had been given to secure the payment of the residue of the $16,000, with interest thereon. The bill contained other allegations, and set forth representations of numerous things which were to be done, but which never were done, and [523]*523which imposed upon the credulity of the defendant. The chancellor seemed to consider this a case of great hardship, as it » clearly was, although he said it was not without its difficulties, and, as he stated, it appeared to him to be inconsistent with the principles of equity, as well as of sound morality, that the plaintiff should compel the defendant to pay his bond and mortgage,- after lie had already paid four times as much as the lots were worth, if the contemplated improvements should not be made.” He then referred to the case of Donelson v. Weakley, (3 Yerg. R. 178,) and said that upon the authority of that case, and upon the equity arising upon the several matters contained in the bill of complaint, he overruled the demurrer which had been interposed, and he concluded: u

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Bluebook (online)
16 Barb. 514, 1853 N.Y. App. Div. LEXIS 181, Counsel Stack Legal Research, https://law.counselstack.com/opinion/farmers-loan-trust-co-v-hunt-nysupct-1853.