Feinstein v. Cion

49 Pa. D. & C.2d 473, 1970 Pa. Dist. & Cnty. Dec. LEXIS 436
CourtPennsylvania Court of Common Pleas, Philadelphia County
DecidedMarch 6, 1970
Docketno. 959
StatusPublished

This text of 49 Pa. D. & C.2d 473 (Feinstein v. Cion) is published on Counsel Stack Legal Research, covering Pennsylvania Court of Common Pleas, Philadelphia County primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Feinstein v. Cion, 49 Pa. D. & C.2d 473, 1970 Pa. Dist. & Cnty. Dec. LEXIS 436 (Pa. Super. Ct. 1970).

Opinion

SPAETH, J.,

NATURE OF THE CASE

This is an action for the specific performance of an agreement to sell real estate.

FINDINGS OF FACT

1. On November 19, 1964, plaintiffs and defendants entered into a written agreement for the sale to plaintiffs by defendants of a tract of real estate at Roosevelt Boulevard and Faunce Street in the City of Philadelphia. The purchase price was $120,000, against which plaintiffs deposited $10,000. The tract was part of a tract owned by defendants and mortgaged to the Connecticut General Life Insurance Com[475]*475pany. The Roosevelt Motor Inn is on the part of the tract to be retained by defendants.

2. On June 4, 1965, plaintiffs, with defendants’ consent, assigned the agreement of sale to Northview Apartments, Inc., a corporation formed by plaintiffs to build and own an apartment building on the tract covered by the agreement of sale.

3. Section 15 of the agreement of sale provided: “The contract to be conditioned upon getting a release from the Mortgage Company for the real property. Seller will do all that is necessary and required to obtain such release.”

4. The mortgagee and defendants evidently agreed upon the terms of the release. However, at settlement, the mortgagee, perhaps for the first time, requested defendants to submit evidence that the part of the tract to be retained by defendants would, after the conveyance, be in conformity with the zoning ordinance of the City of Philadelphia.

5. James Haney, the real estate broker who was involved in the transaction and present at the settlement, proceeded to the Department of Licenses and Inspections of the City of Philadelphia in an attempt to obtain the necessary zoning and use registration permit.

6. When Mr. Haney phoned to the settlement and informed the parties that the Department of Licenses and Inspections would not grant the permit, the settlement was continued by agreement until the permit could be obtained.

7. On June 8, 1965, a formal application for the permit was filed with the Department of Licenses and Inspections, and was denied for the following reasons:

“The application is for the sub-division of an existing lot into two (2) lots (sizes & location as shown in the application). Lot ‘A’ is a 2-story 109 family dwell[476]*476ing (1-hskg. 108-roomers), restaurant and 103 accessory off-street parking spaces erected in 1960, with a rear yard 13' 6" in minimum depth, whereas the rear yard is required to be at least 20' 0" in minimum depth and whereas one parking space is required for each unit — 109 parking spaces. Lot ‘B’ is to remain a vacant lot.”

8. Defendants, fearful that the application and refusal would appear bn the record and thereby jeopardize the future granting of a permit, advised the Department of Licenses and Inspections, by letter, on June 10, 1965, that Mr. Haney was not authorized to make any application on their behalf and requested that the record be cleared.

9. Defendants made no further effort to obtain the permit; nor did plaintiffs make any effort, instead instituting the present action on the theory that defendants had not done “all that [was] necessary and required” to obtain the release from the mortgagee, which action defendants resisted by contending that they had done what was necessary, i.e., request the permit, and that performance under the agreement had been frustrated not by any action or failure of theirs but by the city’s refusal to issue the permit.

10. During the trial, one of defendants, George Shaeffer, testified that if defendants were not left in violation of the city’s zoning ordinance, they would be prepared to transfer title to plaintiffs.

11. The court thereupon directed the parties to make further inquiry of the Department of Licenses and Inspections. Upon this inquiry being made, a representative of the department testified that the department had erred in refusing the application filed in June of 1965 (see finding of fact no. 7, above), and that a permit would be issued if certain parking requirements were met.

12. The trial was interrupted, and plaintiffs, with [477]*477defendants’ permission, obtained the permit by having the architect who had designed the Roosevelt Motor Inn lay out the required number of additional spaces for parking on the appropriate plot plan.

13. It accordingly appeared that all issues between the parties had been resolved, and settlement was scheduled for August 22,1968.

14. Settlement was not held, however, because defendants refused to proceed with it. Trial was then resumed.

DISCUSSION

The court regards the case differently than the parties do. The question is not whether defendants did all that they were required to do under the agreement of sale, nor whether there was a “supplemental” or “secondary” agreement, and if there was, whether it is enforceable. Rather, the question is why the agreement of sale should not be enforced, and there is no reason why it should not be.

The agreement was not repudiated at the settlement; instead, the settlement was continued in the hope that the permit required by the mortgagee could be obtained, and the sale contemplated by the agreement consummated. Nor was the agreement repudiated when the present action was initiated, plaintiffs bringing suit on the agreement, and defendants simply answering, in effect, that the only reason they had not made the sale was because of the city’s refusal to issue the permit. When defendant, George Shaeffer, testified at the trial that if the city were to issue the permit, defendants would be willing to make the sale, he stated explicitly what defendants’ answer implied.

Apparently, what has occurred is that defendants, between the time of trial and the second settlement, decided that, after all, they would not make the sale. That decision is to be regarded in the same way as [478]*478such a decision made at the first settlement would be regarded; it is a breach of contract, and defendants’ arguments about the Statute of Frauds and a new contract are beside the point.

Defendants’ arguments are in any case, it may be noted, without merit.

Assuming that defendant George Shaeffer’s testimony constituted a new agreement, it does not follow that he had to sign the agreement for it to be enforceable. The purpose of the Statute of Frauds, Act of March 21, 1772, 1 Sm. L. 389, sec. 1, 33 PS §1, is to prevent fraud by requiring that certain contracts be written and signed by the party to be charged; thus, the possibility of misunderstanding the terms of the contract is minimized. It is difficult to think of a better written record of the terms of a contract than occurred in this case. The original contract, which is the model for the new contract, is made an exhibit; a party to be charged states his name, and is sworn to tell the truth (an oath the Statute of Frauds does not require); and the party’s name and his responses to questions regarding the terms of the new contract are transcribed, the party all the while being represented by counsel.

Nor does the Uniform Partnership Act of March 26, 1915, P. L. 18, part III, secs. 10 and 11, 59 PS §§32 and 33, prevent recovery on the agreement.

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Bluebook (online)
49 Pa. D. & C.2d 473, 1970 Pa. Dist. & Cnty. Dec. LEXIS 436, Counsel Stack Legal Research, https://law.counselstack.com/opinion/feinstein-v-cion-pactcomplphilad-1970.