Haag v. Dixon

152 S.W. 930, 151 Ky. 768, 1913 Ky. LEXIS 564
CourtCourt of Appeals of Kentucky
DecidedJanuary 28, 1913
StatusPublished
Cited by2 cases

This text of 152 S.W. 930 (Haag v. Dixon) is published on Counsel Stack Legal Research, covering Court of Appeals of Kentucky primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Haag v. Dixon, 152 S.W. 930, 151 Ky. 768, 1913 Ky. LEXIS 564 (Ky. Ct. App. 1913).

Opinion

Opinion op the Court by

Judge Carroll

Affirming.

Before and after 1907, Joseph C. Dixon, his wife, and two' of his three children, who were adults, mortgaged land owned by them to the Ohio Valley Banking & Trust Company to secure loans made by it to Dixon in 1905, 1908 and 1911* On November 27, 1907, Dixon, his wife, and his two adult children entered into a contract with Frederick Haag, the appellant, by which they leased to him for a term of five years, beginning on January 1, 1908, their farm of 392 acres in Henderson county, in consideration of a rental of $1,140 a year. It was also provided in this contract that:

“The said lessee shall have the option to purchase the said farm at any time during the said lease at the price of $24,000, but the said Joseph C. Dixon reserves the right after the expiration of two years to withdraw the proposition to sell said farm to said Haag for $24,000 unless the said Haag after four months notice of such intention of said Dixon shall complete the purchase of said land by paying therefor the said sum of $24,000, or making other satisfactory arrangements for the purchase thereof.”

In April, 1911, the banking and trust company brought its suit against the Dixons, making Haag and one Aaron Mann, assignee of Haag*, parties, for the purpose of enf orcing its mortgage lien upon the property. To this suit Haag and Mann filed their answer, which was made a cross petition against the Dixons.

In this pleading it was averred that Mann had acquired from Haag an interest in the lease contract and all the rights arising thereunder,' and that they had frequently notified the Dixons in accordance with the provision of the contract giving Haag an option to purchase the land; that they were ready- and willing to comply with-the contract to purchase, and they asked a specific performance of the contract. They further set up in this pleading that Joseph C. Dixon had an infant daughter, Margaret Dixon, and that their offer to purchase the land under the option was conditional upon being protected against the interest of the infant, Mlarga-ret, who [770]*770had not joined in the contract, and who in fact was never made a party to these proceedings and is not a party to this appeal.

They further set up that under the written contract, as well as under a verbal contract made with Dixon, they had expended, in making improvements on the land during the term of the lease, $3,385.78, and they asked a judgment against the Dixons, excepting Margaret, for this amount, and also that they be adjudged a lien on the land to secure its payment.

After the case had been prepared for trial the Chancellor rendered a judgment dismissing the pleading of Mann and Haag in so far as it sought a specific performance of the contract giving them a right to purchase the land, but gave judgment against the Dixons, excepting Margaret, for $1,685.78, on account of improvements and repairs made by them on the land, and gave them a lien on .the leased land, subject to the prior lien of the banking and trust company, to secure its payment. The judgment also provided for the enforcement of the lien of the banking and trust company and protected the interest of the infant, Margaret. From this judgment, Haag and Mann prosecute this appeal, and the Dixons prosecute a -cross appeal from the judgment in favor of Haag and Mann again-st them on account of improvements and repairs, insisting that this .judgment was for $359.78 more than it should have been.

As we understand the record there are only two questions for our consideration: (1) whether the judgment in favor of Haag and Mann against Dixon is larger than it should have been, and; (2) whether or not Haag and Mann are entitled to a specific performance of their contract -with the Dixons.

•So far as the judgment in favor of Haag and Mann against the Dixons is concerned, we are not disposed to disturb the- finding of the Chancellor. This judgment involved a settlement of accounts between the parties and presented merely a question of fact, and while some of the items in the account were disputed by Dixon, the evidence that the amount allowed is correct is well sustained and we are not disposed to disturb the conclusion reached by the Chancellor.

On the question of Haag and Mann being entitled to a specific performance of the contract we have been furnished with elaborate briefs by the attorneys for Haag [771]*771and Mann and for the Dixons, but we think the matter is not difficult of solution. When the lease contract was made containing the -clause giving Haag the right to purchase the property Margaret Dixon, the infant, and who is yiet, as far as appears from this record, an infant, owned an interest in the land equal to the interest of the .two other children of Joseph C. Dixon and this fact was well known at the time to Haag. Being, an infant, she was of course not a party to the contract giving the option to purchase, and her rights could not be in any manner prejudiced by this contract o-r any other contract that the adult Dixons might have- made.

The lease- contract, or rather the -clause we have quoted, contains the whole of the -contract between the parties in respect to the option to purchase, and by this contract the right of Haag and his assignee are to be determined. It will be noticed that under this contract Haag had an option to purchase- the farm at -any time during the -lease for $24,000, but Dixon reserved the right, after the expiration of two- years, to withdraw •the proposition to sell, and this withdrawal was to be final unless Haag, within four months after notice of the withdrawal, ‘ ‘ shall complete the purchase of' the said land by paying therefor the said sum of $24,000, or make other satisfactory arrangements for the purchase thereof.”

The evidence shows that Haag, several times during the existence of the lease contract, and before the institution of this suit, in 1911, offered to take the land and pay therefor the $24,000, but it also- appears that his proposition- to purchase the land was always accompanied with the condition that he must be protected against the interest Margaret Dixon had in the land. The' position of Haag is well illustrated by a letter appearing in the record that he addressed to Joseph C. Dixon in September, 1910. In this letter he said:

“You -are hereby notified that as I informed you several months ago I am ready to complete the purchase and make the necessary payment on your farm * * * under my contract with you for the purchase- thereof, and hereby request that you prepare ¡and deliver to me the proper deed therefor for the said farm. * * * The proper provision should be made in the deed for protection against any interest that your infant daughter, Margaret, may have upon the land, as agreed upon at [772]*772the time the contract was entered into. The contract has been assigned by me to Aaron Mann, of Henderson, Kentucky, and the deed should be made to him.”

This proposition of Haag, electing to purchase the land, is not in conformity with the contract giving him the option to purchase. There is no provision in the option contract that Haag should be protected against the interests of Margaret Dixon, and while it may have been contemplated, as argued by counsel, by Joseph C.

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

Related

Cite This Page — Counsel Stack

Bluebook (online)
152 S.W. 930, 151 Ky. 768, 1913 Ky. LEXIS 564, Counsel Stack Legal Research, https://law.counselstack.com/opinion/haag-v-dixon-kyctapp-1913.