Handy v. Rice

57 A. 847, 98 Me. 504, 1904 Me. LEXIS 19
CourtSupreme Judicial Court of Maine
DecidedMarch 24, 1904
StatusPublished
Cited by7 cases

This text of 57 A. 847 (Handy v. Rice) is published on Counsel Stack Legal Research, covering Supreme Judicial Court of Maine primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Handy v. Rice, 57 A. 847, 98 Me. 504, 1904 Me. LEXIS 19 (Me. 1904).

Opinion

Whitehouse, J.

This is a bill in equity to enforce the specific performance of an agreement to convey real estate.

By the terms of the bond the plaintiff, a resident of Aroostook County, agrees to pay to the defendant, James Rice, a resident of Bangor, “seventy dollars Dec. 1, 1899, fifty dollars July 1, 1900, fifty dollars January 1, 1901, fifty dollars July 1, 1901, and fifty dollars Jan. 1, 1902, with interest on the whole at 12 until paid, agreeably to 1ns five notes of even date herewith.” And in consideration thereof the defendant, James Rice, agrees that “after the payment of said sum before or at the time the same shall become due as aforesaid,” he will upon request convey to the plaintiff certain real estate in Molunkus, in the County of Aroostook, “by good and sufficient deed thereof including release of dower.”

The case comes to this court by appeal from the decree of a single justice, with a report of all the evidence. The case also presents a [506]*506statement .of the findings of fact and of the special rulings of the court below, as follows:

“July 7th, 1899, the defendant, James Bice, living in Bangor gave to plaintiff a bond for a deed for the land in Molunkus described in the bill, and the plaintiff gave the defendant, James Bice, the notes described in the bond. The plaintiff thereupon moved on the land and has since occupied it as a homestead. At the time of executing these papers, Bice told the plaintiff that he might pay the money on the notes to Joseph Davis who lived in Chester and who had some care of some of Bice’s interest in that vicinity.
“When the first note was due the plaintiff Avent to Davis and asked for the note and paid the amount with interest, and took it up. When the second note fell due it Avas not paid at maturity but a few days afterwards, July 12, the plaintiff paid $25.00 on the note to Davis and had the indorsement made by Davis and agreed to pay the balance in a month or so. He did not pay the balance however till December 27th, Avhen he paid it to Davis and took up the note. In the meantime he had been dunned by Bice for the balance and had been notified that unless paid at once, a forfeiture would be insisted on, but no steps were taken to eject him from the premises nor was he then explicitly notified that no more payments Avould be received. Mr. Davis sent the amount to Mr. Bice.
“On January 1, 1901, the plaintiff went again to Davis and desired to pay the note then due and also to pay all the unmatured, notes, claiming that by the terms of the bond he could do so and acquire a right to a deed. Mr. Davis said he did not have the notes-but would send for them. The plaintiff insisted, hoAvever, that he take the money Avhieh he finally did, the full amount of all the remaining notes with interest up to that day, giving a receipt. The plaintiff had never been informed that Davis’ authority Avas revoked. This money, Davis sent to Bicé Avith letters of explanation. Bice returned this money and also the balance of the second note which had been paid Dec. 27 to Mr. Davis with the instructions to return the whole to the plaintiff. He retained, however, the remaining notes of the plaintiff, and has never offered to return them until the hearing Avhen he asked leave to amend his ansAver and offered to [507]*507return the notes. Davis offered to repay the money to the plaintiff but the plaintiff refused to receive it. Subseqently, at some date not stated, Davis deposited the amount in the Savings Department of the Eastern Trust & Banking Co. to his own personal credit.
“During these events Mr. Rice conveyed the land to his son the other defendant by a deed not yet recorded, but his son had full knowledge of all the events.
“Upon these facts I rule, (1) that no forfeiture was incurred by the plaintiff, — (2) that his payments to Davis were under the circumstances payments or tenders to James Rice,— (3) that though James Rice may still have a personal claim for interest on the unmatured notes up to their maturity the tender of the amount accrued at that date, Jan. 1, 1901, entitled the plaintiff to a deed under the terms of the bond and is entitled to a conveyance from both defendants according to the term of the bond,— (4) that the plaintiff is entitled to costs.”

The final decree provides “That said James Rice and Frank X. Rice shall make, execute and deliver to said Clarence P. Handy a deed of quit-claim with special covenants of warranty against incumbrances created by them of the premises described in the bill of complaint, including the release of dower or title by descent by the wives of said James Rice and Frank X. Rice, within fifteen days from the date of filing this decree in accordance with the terms of the bond.”

It is a settled rule in the equity practice of this State that the decision of a single justice upon matters of fact in an equity hearing will not be reversed unless it clearly appears that such decree is erroneous; and the burden to show the error falls upon the appellant. Young v. Witham, 75 Maine, 536; Berry v. Berry, 84 Maine, 542; Hartley v. Richardson, 91 Maine, 424.

A careful scrutiny of all the evidence reported in the case at bar fails to show that the findings of fact above stated were “clearly erroneous;” on the other hand it satisfactorily appears that they were correct.

The conclusions of law deduced by the justice below would seem to follow naturally and necessarily from his findings of fact.

[508]*508It is a well established principle in equity that the obligee in a bond for the conveyance of real estate containing the usual provision that the bond shall be void upon the execution of a deed of the property, cannot be compelled to accept the amount of the penalty named in the bond in full discharge of the obligation, but upon compliance with the conditions on his part is ordinarily entitled to a specific performance of the bond as a distinct agreement for the conveyance of land. 1 Pom. Eq. Jur. 446; Dooley v. Watson, 1 Gray, 414; Bragg v. Paulk, 42 Maine, 502.

In the case at bar it is claimed in behalf of the defense that the plaintiff is not entitled to specific performance in the first place because it is said he failed to pay the amount of the notes and interest at maturity as required by the terms of the bond.

It is true that the balance of $25.00 and interest due on the second note payable July 1, 1900, was not paid until the following December when the amount due was accepted by Mr. Davis, the authorized agent of the defendant, James Rice, and the note duly surrendered to the plaintiff. The right to insist upon payment of the note at maturity was undoubtedly waived. The defendants were not prejudiced by the delay in the payment of a note.drawing twelve per cent interest, and it was obviously not deemed a sufficient reason for insisting upon a forfeiture. No measures were taken by the defendants to obtain possession of the premises, and the plaintiff was not then expressly informed that no further payments would be received. When the third note became due January 1, 1901, the plaintiff paid to Mr.

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Bluebook (online)
57 A. 847, 98 Me. 504, 1904 Me. LEXIS 19, Counsel Stack Legal Research, https://law.counselstack.com/opinion/handy-v-rice-me-1904.