Giarratano v. McIlwain

215 A.D. 644, 214 N.Y.S. 582, 1926 N.Y. App. Div. LEXIS 11030
CourtAppellate Division of the Supreme Court of the State of New York
DecidedMarch 12, 1926
StatusPublished
Cited by5 cases

This text of 215 A.D. 644 (Giarratano v. McIlwain) is published on Counsel Stack Legal Research, covering Appellate Division of the Supreme Court of the State of New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Giarratano v. McIlwain, 215 A.D. 644, 214 N.Y.S. 582, 1926 N.Y. App. Div. LEXIS 11030 (N.Y. Ct. App. 1926).

Opinion

Van Kirk, J.

The complaint states a cause of action for rescinding a contract to convey a farm and personal property thereon, made August 10, 1920, by the plaintiffs and their assignors as vendees, with the defendant as vendor, on account of false representations as to the title and hens upon the real and personal [646]*646property, relying upon which false representations the vendees entered into that contract; also a cause of action to recover the sums paid to defendant on the contract on the ground that defendant by his own fault and fraud had permitted his title to the real estate to be taken from him, thus causing a complete change in the conditions as to title and making it impossible for him to perform, and to have a lien therefor on the personal property.

We find no proof of detriment or loss suffered by plaintiffs solely on account of the false representations charged and so pass the cause of action to have rescission because the contract was void for fraud in its inception. But we think a recovery of the sums paid by the plaintiffs to defendant is justified. It is alleged in the complaint and the proof shows that defendant was the vendee in a contract with one Scott as vendor to convey this same real estate; the defendant defaulted in his payments upon that contract; Scott brought action in January, 1922, to foreclose it; judgment of foreclosure was entered therein and the premises sold to a third party;.immediately after such sale the plaintiffs elected to renounce further performance of the contract, left the real estate and took therefrom the personal property which was conveyed under the contract of August 10, 1920. Defendant’s title to the real estate rested solely in this Scott contract, and his only source of title which would enable him to perform his contract with plaintiffs was by complying with the terms of that contract. Under its terms defendant was to pay forty-five dollars per month. He made his last payment November 15, 1920, but three months after making his contract with plaintiffs. He continued in default until January, 1922. In this interval plaintiffs had regularly paid sixty dollars a month to defendant, in compliance with the terms of their contract, and defendant had applied this sixty dollars per month to payment of his own obligations other than those under his contract with Scott. Scott, in the action to foreclose his contract with defendant, served the papers upon these plaintiffs. Defendant defaulted in that action; he abandoned that contract and made no attempt to protect the only title or interest he had in the real estate. The real estate was sold to his brother, who soon thereafter executed a mortgage in the sum of one thousand eight hundred dollars thereon. No assurance in any valid form was given to these plaintiffs that their rights under their contract with defendant would be protected. Here then was a complete change in the condition of the title, which in our view excused the plaintiffs from continuing the contract and justified them in withdrawing therefrom. Williston says in his work on Contracts (§ 878): “ It is obvious that a conveyance subsequent to the contract [647]*647imposes a risk of inability which the buyer did not assume, and it is also clear that such a conveyance justifies an inference of intent not to perform which would not be warranted by a lack of title at the time the contract was originally entered into.” (See, also, James v. Burchell, 82 N. Y. 108.) Neither the oral statement which defendant claims he made, nor the testimony of the brother John, who purchased the real estate, that he is ready and willing to carry out the contract, in any wise affected the right of the plaintiffs to withdraw from the contract; such oral statements bound no one. Neither defendant nor his brother ever made any tender of a written contract by the brother with the plaintiffs.

The plaintiffs not only had the right to withdraw from the contract but they had a right to maintain an action for reimbursement (Flickinger v. Glass, 222 N. Y. 404) without further performance or tender of performance on their part. (Williston Cont. §§ 767, 768.) We quote from section 768, entitled “ Conditions precedent as well as conditions concurrent are excused by the promisor’s prospective non-performance,” as follows: The injustice of requiring performance of the condition in order to acquire a right of action when the promisor has indicated that he will not keep the promise is obvious. Contracts are not made with the expectation that they will be broken, but with the expectation that they will be performed. A promisee will rarely think it wise to perform a condition precedent, involving large expense, when he knows that the promisor will not perform in his turn. Yet to deny him because of this a right of action against the promisor who has brought the situation about is unjust and inconvenient. It may be urged that the contrary view involves enforcing against the promisor a promise which he never made; namely, an absolute instead of a conditional promise; but owing to his own conduct he should be precluded from insisting upon the condition. There is no doubt that this is the law, and that no distinction is taken by the courts in this respect between conditions which require co-operation or concurrent action by the promisor and those which do not.”

The fact that plaintiffs retained possession of the personal property covered by the contract is not inconsistent with this cause of action. The principal part of the personal property was a dairy; the cows could not be abandoned to take care of themselves; they must be fed and milked. These cows came rightfully into the possession of the plaintiffs; the plaintiffs rightfully chose to withdraw from the contract and leave the premises. They were under obligation to take with them at least the cattle. And when later they refused to deliver the personal property to the defendant the refusal was because they claimed a hen thereon and rightfully [648]*648as we think will appear later. They promptly brought this action and on May 22, 1922, obtained an order from a justice of the Supreme Court restraining defendant, his representatives and all persons claiming under him, from interfering with or seizing this personal property “ until the determination of this action or further order of the court.” This order was based upon the hen claimed by defendant. It has never been appealed from or modified. Acts do not necessarily determine a man’s relation to property in his possession; his intention fixes the character and nature of his possession. (Weigel v. Cook, 237 N. Y. 136,140.) Whether rightfully or wrongfully, the plaintiffs held this personal property solely to secure payment to them of the amount they had lost by defendant’s wrongdoing. They still had the right to renounce performance and bring action.

Nor do we think it was necessary that plaintiffs should have given any notice to defendant requiring performance at some future time on his part, or requiring some further assurance that he would perform. The foreclosure proceeding and the subsequent separation of defendant from the title to the real estate was entirely due to the fault or omission of the defendant. In connection with it there was no waiver of any condition of the contract on the part of the plaintiffs, nor any delay in which they concurred by implication.

Consistently with the cause of action here upheld the court has allowed judgment for the exact amount which the plaintiffs had paid upon the contract.

There remains the question of the vendee’s lien.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

American Savings & Loan Ass'n v. Blomquist
465 P.2d 353 (Utah Supreme Court, 1970)
Leavitt v. Blohm
357 P.2d 190 (Utah Supreme Court, 1960)
Hunt v. Mahoney
187 P.2d 43 (California Court of Appeal, 1947)
In re the Estate of Vaughan
156 Misc. 577 (New York Surrogate's Court, 1935)

Cite This Page — Counsel Stack

Bluebook (online)
215 A.D. 644, 214 N.Y.S. 582, 1926 N.Y. App. Div. LEXIS 11030, Counsel Stack Legal Research, https://law.counselstack.com/opinion/giarratano-v-mcilwain-nyappdiv-1926.