Grummel v. Hollenstein

367 P.2d 960, 90 Ariz. 356, 1962 Ariz. LEXIS 311
CourtArizona Supreme Court
DecidedJanuary 17, 1962
Docket6668
StatusPublished
Cited by17 cases

This text of 367 P.2d 960 (Grummel v. Hollenstein) is published on Counsel Stack Legal Research, covering Arizona Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Grummel v. Hollenstein, 367 P.2d 960, 90 Ariz. 356, 1962 Ariz. LEXIS 311 (Ark. 1962).

Opinion

PER CURIAM.

From a judgment rendered in favor of the plaintiffs, both the plaintiffs and defendants appeal. The matter was tried by the court without a jury. The parties will be referred to as they appear in the trial court.

The essential facts are as follows: Defendants owned 640 acres of unimproved land in the Harquahala Valley in central Arizona. In addition, they held desert entry rights to an additional 480 acres of unimproved Federal land adjoining their fee acreage.

In the latter part of 1951 plaintiffs and defendants entered into an oral agreement whereby the plaintiffs agreed to sink an irrigation well in return for one-half of the defendants’ acreage. It was further agreed that plaintiffs would be entitled to the use and production of the entire farm until they had fully recouped all of their investment.

The well was sunk, and thereafter the parties performed their agreement. In 1953 defendants conveyed one-half of the patented land (320 acres) to plaintiffs, so that the plaintiffs could buy out a partner who had originally been associated with them in the venture.

By early 1955 serious difficulties had developed between the parties, and in Novem *358 ber of that year plaintiffs filed suit against the defendants seeking (1) an injunction restraining defendants from interfering with plaintiffs’ use of the farm until recoupment of all funds was made, (2) an accounting and dissolution of any and all relations between the parties, (3) a decree of specific performance, to require defendants to convey sufficient land to give effect to the contract. An amendment to the complaint sought additionally (4) to cancel a written lease between plaintiffs as lessees and defendants as lessors, and (5) damages for breach of contract, resulting in unjust enrichment to the defendants in the amount of $15,000.

During the course of the trial the parties entered into a written stipulation, the effect of.which was to remove from the court’s, consideration the issues which have been designated (1), (2), (4) and (5), above. Thus, the only issue left for the court’s determination was that concerning specific performance. At the conclusion of the case, the court entered a money judgment in favor of the plaintiffs in the amount of $40,000.

The defendants assign as error the court’s failure to grant their motion to vacate and set aside the judgment, and their motion for a new trial on the grounds that:

(1) The pleadings and record did not permit the court to enter its judgment for money damages based upon breach of contract to convey land,

(2) The judgment was contrary to law because a material variance existed between the pleadings and the proof, and

(3) The judgment is not supported by competent evidence.

The stipulation, insofar as it is essential to the determination of the issues, reads as follows:

“NOW THEREFORE, in consideration of the foregoing, IT IS HEREBY STIPULATED AND AGREED BETWEEN THE PARTIES AS FOLLOWS:
“1. The prayer for relief, being numbered No. 1 for an injunction, may be stricken, and count III contained in plaintiffs’ amendment to complaint money damages for unjust enrichment may be dismissed with prejudice, pursuant to the terms of this stipulation.
“5. The principal function of this stipulation is to delete from determination of this lawsuit the plaintiffs’ prayer for injunctive relief and their claim from the defendants for money by reason of accounting of the so-called partnership operation.
“It is specifically understood and agreed, however, by all parties to this stipulation that this stipulation shall in no ways limit in any manner the plaintiffs from proving any or all portions of the books, records and transactions of the so-called partnership operation, and neither shall it limit in any man *359 ner the plaintiffs from proving by competent evidence any other fact or circumstance which would otherwise be material to this litigation just as though this stipulation had not been executed, and likewise this stipulation shall in no manner limit nor determine the defendants from such cross examination or independent proof as they may otherwise deem material and competent.”

It is apparent that the effect of this stipulation is to remove from the court’s consideration the issue of money damages by reason of accounting of the so-called partnership operation. It did not affect, or intend to affect the plaintiffs’ claim for specific performance.

It is further apparent that the trial court concluded that it could not order the defendant specifically to perform the contract. We agree. A portion of the land had already been conveyed to a third party, and hence it was impossible to enforce the agreement of the parties, which called for an equal division of the land..

“The courts will go a long way to protect persons found in the situation of the plaintiffs, * * * but they cannot, and will not, make a new contract for the parties and specifically compel its performance.” Ernst v. Deister, 42 Ariz. 379, 384, 26 P.2d 648, 650 (1933).

Whether or not a court will award damages when specific performance cannot be enforced, depends upon the particular facts involved. The general rule is discussed in 49 Am.Jur., Specific Performance § 173 (1943):

“As the rule is often laid down, a court of equity will not grant pecuniary compensation in lieu of specific performance unless performance has become impracticable, or unless the case presented is one for equitable interposition such as would entitle the plaintiff to performance but for intervening facts, such as the destruction of the property, the conveyance of the same to an innocent third person, or the refusal of the vendor’s wife to join in a conveyance, which would render the decree useless or inadequate.” 1

There is yet another compelling reason why the court could grant a money judgment, having determined that it could not grant specific performance. Rule 54 (d) of our Rules of Civil Procedure, 16 A.R.S., provides:

“Except as to a party against whom a judgment is entered by default, every final judgment shall grant the relief to which the party in whose favor it is rendered is entitled, even if the party *360 has not demanded such relief in his pleadings.”

This court, in discussing the rule in Mackey v. Spangler, 81 Ariz. 113, 116, 301 P.2d 1026, 1028 (1956) stated:

“Under our present rules of civil procedure the plaintiffs are entitled to and the court should award them any relief which the evidence legitimately admitted under the pleadings allows under any theory, whether this be the theory advanced by the plaintiffs in their complaint. A complainant will not be denied legitimate relief merely because he might have misjudged the proper theory.

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Cite This Page — Counsel Stack

Bluebook (online)
367 P.2d 960, 90 Ariz. 356, 1962 Ariz. LEXIS 311, Counsel Stack Legal Research, https://law.counselstack.com/opinion/grummel-v-hollenstein-ariz-1962.