Harris v. Shorall

188 A.D. 330, 177 N.Y.S. 214, 1919 N.Y. App. Div. LEXIS 7787

This text of 188 A.D. 330 (Harris v. Shorall) 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
Harris v. Shorall, 188 A.D. 330, 177 N.Y.S. 214, 1919 N.Y. App. Div. LEXIS 7787 (N.Y. Ct. App. 1919).

Opinions

Woodward, J.:

This is an action for specific performance of a contract, and has resulted in a judgment in favor of the plaintiff, from which the defendants appeal. The complaint alleges the ownership of the premises involved by the plaintiff, and that on the said nineteenth day of January, 1918, the plaintiff and defendants entered into an agreement in writing, a copy of which is hereto annexed, * * * for the sale by plaintiff and purchase by defendants of the said real property.” The written contract referred to provided for the sale of the premises described to the defendants for the sum of $16,000. Five hundred dollars was to be paid upon the delivery of the contract, and this was done. Four thousand five hundred dollars was to be paid on the 15th day of February, 1918, on which date deed is to be delivered and purchase price paid, and possession to be given second parties; the property is subject to a mortgage of $11,000 held by the Albany Savings Bank, and when the said $5,000 is paid as above provided, the deed is to be given as hereinafter provided, and subject to said mortgage. First party agrees to procure from said bank an extension of the payment of said mortgage for at least two years from this date, or to procure some other person to hold said mortgage for that time; and in default thereof, this agreement is to become void and said $500 returned to said second parties.”

Language could hardly be stronger; the defendants made it a condition precedent to the consummation of the purchase that the plaintiff should procure the bank or some other person to “ hold said mortgage ” for a period of at least two years, and this contract is under seal, and must be presumed to express the understanding between the parties. That the plaintiff understood that this was a condition precedent is [332]*332evident from the fact that in his complaint it is alleged that after said nineteenth day of January, 1918, and prior to the fifteenth day of February, 1918, plaintiff duly procured an agreement óf the Albany City Savings Institution * * * for the extension to February 15th, 1920, of the payment of $10,000 of the $11,000 secured by the mortgage incumbrance on said premises held by the said Savings Institution, and that plaintiff thereupon agreed with defendants to take their mortgage on said premises as security for the payment to him on February 15th, 1920, of the remaining sum of $1,000 to be paid by him to said Savings Institution in reduction of the said mortgage incumbrance held by it, to all of which defendants agreed.” The complaint then alleges the tender of a deed, with the usual muniments of title, and the refusal of the defendants to pay the consideration and accept the deed, and demands judgment for the specific performance of the contract.

The answer admits the making of the contract and the initial payment of $500, and denies the remaining material allegations of the complaint. It is to be noted that there is no effort to reform the contract; no suggestion of any misunderstanding in reference to the terms or conditions of the written instrument. The plaintiff sets out the contract in full and “ prays judgment that the defendants be required to perform said agreement, pay to plaintiff the sum of $4,500, with interest thereon, from February 15th, 1918, and execute and deliver to plaintiff a mortgage on said premises as security for the payment to plaintiff of the sum of $1,000,” etc. But the “ said agreement ” makes no provision whatever for giving to the plaintiff a second mortgage upon the premises; the “ said agreement,” which the plaintiff asks to be performed, provided that the plaintiff should procure from the bank an “ extension of the payment of said mortgage ” of $11,000 for at least two years, or procure some other person to hold said mortgage ” for that time, and as there is not claimed to have been any misunderstanding as to the terms it is difficult to understand how any court can decree the specific performance of the contract set out, and at the same time require the defendants to give a second mortgage on the property. It is true, of course, that upon the face of the transaction [333]*333there appears little difference between the extension of 11 said mortgage ” for $11,000 and the extension of $10,000 of the said mortgage and the giving of a second mortgage to take care of the plaintiff’s advance of $1,000 in payment of that portion of the mortgage, but if the court is to make a new agreement for the parties there should be some equitable grounds for the reformation of the contract — not an arbitrary determination that something else is just as good. And in a business way a second mortgage upon the premises is not just as good as one mortgage for the aggregate sum; it introduces a complication which would at least have to be explained. The bank was not willing to extend the credit to the extent of $11,000, and a second mortgage, with the possibilities always of default and foreclosure, depreciated the property as a basis of credit, and then, too, there is the question of the mortgage taxes, for which no provision appears in the contract.

But a more serious question is presented. The complaint, as we have already pointed out, alleges that prior to the law day the “ plaintiff duly procured an agreement of the Albany City Savings Institution * * * for the extension to February 15th, 1920, of the payment of $10,000 of the $11,000 secured by the mortgage incumbrance on said premises,” and this allegation is denied in the answer. Even upon the plaintiff’s theory that the $10,000 extension and the payment of $1,000, with a second mortgage to the plaintiff, was just as good for the defendants, it was necessary to show that the plaintiff had performed this much of the agreement; it is still requisite that the judgment or decree of the court should be secundum allegata et probata. The rule is explicit and absolute that a party must recover in chancery according to the case made in his bill, or not at all; secundum allegata, as well as probata. (Mc Neil v. Cobb, 186 App. Div. 177, 181, and authorities there cited.) It is true the learned trial court has found as a fact that “ after the 19th day of January, 1918, and prior to the time agreed upon in said contract for the delivery of the deed and the payment of the balance of the purchase price, plaintiff duly procured an agreement of the Albany City Savings Institution * * * for the extension,” etc., but a careful examination of the testimony fails to disclose any evidence to support this finding. The only testimony bearing upon the alleged exten[334]*334sion agreement is found in connection with an alleged letter from the Albany bank in which it is alleged to have expressed a willingness to extend the time of the mortgage to the extent of $10,000 upon three conditions, not one of which the defendants were willing to comply with, or did, and the undisputed testimony of the plaintiff’s witness on cross-examination, that the alleged extension agreement which was produced on the law day was in blank and unexecuted by any one. Moreover the court itself declared, in the course of an examination of a witness, that there was no claim that there was an executed extension agreement at the law day meeting, and the record shows that no such agreement was executed by the Albany bank until the 10th day of September, 1918, approximately five months after the complaint was made and verified.

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Related

Brownell v. . Town of Greenwich
22 N.E. 24 (New York Court of Appeals, 1889)
McNeil v. Cobb
186 A.D. 177 (Appellate Division of the Supreme Court of New York, 1919)

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Bluebook (online)
188 A.D. 330, 177 N.Y.S. 214, 1919 N.Y. App. Div. LEXIS 7787, Counsel Stack Legal Research, https://law.counselstack.com/opinion/harris-v-shorall-nyappdiv-1919.