Hale v. Young

24 Neb. 464
CourtNebraska Supreme Court
DecidedJuly 15, 1888
StatusPublished
Cited by4 cases

This text of 24 Neb. 464 (Hale v. Young) is published on Counsel Stack Legal Research, covering Nebraska Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Hale v. Young, 24 Neb. 464 (Neb. 1888).

Opinion

Reese, Ch. J.

On the 3d day of August, 1882, plaintiff was the owner of the south-east quarter of section eight, and the southwest quarter of section nine, and the south half of the [466]*466.south-east quarter of section nine, all in township twenty-two north, of range three west, in Madison county. At the same time he held by lease from the state of Nebraska the south-west quarter, and the north-east quarter of the north-west quarter, and the north-west quarter of the northeast quarter of section sixteen, township twenty-two north, of range three west, being a part of the school lands belonging to the state. A contract of sale was made after-wards by plaintiff to defendants, John M. and Alexander Young, whereby plaintiff sold to them what was denominated plaintiff’s old farm. Plaintiff" executed to the Youngs a title bond, by which, upon the performance of the conditions therein expressed, by the Youngs, he bound himself to convey to them the lands in sections eight and nine, but no reference was made in the bond to the school land leases. The indebtedness described in the bond was $1,800, to be paid on or before the 3d day of October, 1882, and $4,000 on the 3d day of August, 1892, with interest at the rate of ten per cent per annum. The price for which the farm was sold was $6,000, $200 of which was paid in cash, and notes were executed for the remainder, to mature at the times above designated. The $1,800 payment was made on or before the date of its maturity. After the completion 'of the contract and the exchange of the papers mentioned, it seems to have occurred to ■ plaintiff that in the execution of the writings certain portions of the oral contract had been omitted. These were, that the interest on the $4,000 note should have been made payable annually, and that defendants Young should have assumed the payment of all taxes accruing against the land subsequent to the year 1882. He visited the state of Virginia, where they resided, when they executed to him separate notes for the accruing interest, said notes to mature as the interest accrued. Afterwards, through the instrumentality of Joseph Osborn, as agent, defendant David A. Hale purchased the premises from the Youngs. A dispute having [467]*467arisen as to the obligations of the parties under their contract, this action was brought by plaintiff for the purpose of reforming the written contract so as to correspond with the agreement of sale, alleging that the failure of the writings to express the contract was owing to the mistake of the person employed to prepare them. It was alleged that, as soon as the mistakes were discovered, plaintiff directed the attention of the defendants Young to the omissions; that they had acknowledged the same, and agreed to correct them, and did so in relation to the payment of the annual interest by the execution of the notes referred to, but that they had failed and refused to have the bond so corrected, either as to the payment of interest or as to the payment of the taxes on the land; that they had failed and refused to pay the taxes,'had permitted them to become delinquent, and that for the purpose of protecting his security for the $4,000 he had been compelled to pay the taxes for the years 1882 and 1883; that one Joseph Osborn had purchased the real estate from defendants, and that they had executed to him a title bond, binding themselves to convey the property to him as soon as their titles were perfected by conveyance from plaintiff to them; that Osborn had acquired whatever interest he had in the property with full knowledge of plaintiff's rights, and with full knowledge of the real contract existing between the parties. That defendant, David A. Hale, was in possession of the property, claiming an interest ■therein derived through Osborn and the Youngs, but that whatever interest he had was subject to the rights of plaintiff ; that defendants Osborne and Hale were jointly and severally indebted to the Youngs for the part of the purchase price in excess of the amount due plaintiff on the original obligation as given; that John Young was a resident of the state of Virginia, and had no property in this state liable for the payment of the debt, and that defendant Alexander Young had no property which could be taken [468]*468on execution for the payment of his debts. The prayer of the petition was, that the contract be reformed so as to correspond with the original agreement, and that the interest and the amount due plaintiff for taxes should be declared a lien upon the land.

To this petition the Youngs filed an answer, denying that they agreed to pay all the taxes described in the petition, and denying generally the material allegations of the petition so far as the original agreement was concerned. They also filed a cross-bill, by which they alleged the purchase of the real estate from plaintiff, and that said purchase included the leases upon the school land referred to, and that the leases had been transferred to them by plaintiff, and were left with one Boyer by them for safe keeping, but without any authority from them he had surrendered said leases to plaintiff; that they had sold the real estate to Osborn, but that by reason of the plaintiffs having obtained possession of the leases they were unable to execute their contract with him by the delivery thereof, and that said contract, although unexecuted by them, was of full force and effect. The prayer of the cross-bill was, that plaintiff be required to surrender unto them the leases referred to, and that he be debarred from having or claiming any interest in or to them, either as against defendants Young, or as against Osborn, their vendee.

The answer of defendant David A. Hale consisted, First, of a general denial of all the allegations of plaintiff’s petition. Second, of a cross-bill, by- which the original contract was alleged according to the allegations of the cross-bill of the Youngs, the execution by them of the bond and notes referred to in plaintiff’s petition; that the Youngs had in all respects complied with the terms of the contract on their part; that on the 28th day of March, 1884, the Youngs had sold all of the lands referred to in the petition, as well as the school lands referred to in the answer of the Youngs, to defendant, Joseph Osborn, upon his [469]*469paying them the sum of $1,000 on the first day of May, 1884, $2,000 on the first day of November, 1884, and assuming to pay to plaintiff the $4,000 due from the Youngs on the 3d day of August, 1892, with the interest thereon at the rate of ten per cent per annum; that said Osborn, in making said contract, did so for him, Hale, as his agent, Hale furnishing the money, and that soon thereafter Osborn transferred to him the evidences of the contract, and that he, Hale, was the real party in interest in said purchase; that upon the purchase being made, he had taken possession of the land and had continued to hold it, and that he was the present owner thereof.

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Bluebook (online)
24 Neb. 464, Counsel Stack Legal Research, https://law.counselstack.com/opinion/hale-v-young-neb-1888.