Heitman v. Clancy

167 Iowa 58
CourtSupreme Court of Iowa
DecidedOctober 6, 1914
StatusPublished
Cited by2 cases

This text of 167 Iowa 58 (Heitman v. Clancy) is published on Counsel Stack Legal Research, covering Supreme Court of Iowa primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Heitman v. Clancy, 167 Iowa 58 (iowa 1914).

Opinion

Preston, J.

There is no contention by appellant that appellees would not be entitled to the relief asked by them if it is found that plaintiff is not entitled to specific performance. The question is therefore, as to whether plaintiff is-entitled under the record to specific performance. The plaintiff executed a deed to defendants for the -Canada land, and defendants executed a mortgage thereon to plaintiff. This was done before the time for the performance of the contract. Defendants claim that certain representations were made by the agent for plaintiff, to be performed by plaintiff before that date, which were not carried out by plaintiff, and defendants refused to make a conveyance of their Davenport property.

The written contract was executed June 12,1912, and was to be performed July 1, 1912. The substance of the contract is that plaintiff was to deliver a deed to defendants for a half section of land in Canada, and defendants were to convey to plaintiff their lot in Davenport, and that plaintiff was to assume a certain mortgage of $2,100 on the Davenport property and defendants were to execute a mortgage for that amount, to the plaintiff, upon the Canada land. The contract also provided that plaintiff and defendants were each to pay $100 to Muxfeldt for services rendered at the time the contract was executed, and that upon the completion and consummation of the salé and agreement plaintiff was to pay the further sum of $100 commission to Muxfeldt and defendants to- pay him the further sum of $50. •

“Plaintiff alleges that he has complied with all the terms of the contract to be by him performed, and that he has always been willing,' ready, and eager to perform his part of the contract. He does not allege that he was able to do so, but no point is made as to this by appellees. The defendants admit the execution of the contract, but deny that same is of any force. They say that at the time of the execution of the contract and the negotiations preceding one Carl Muxfeldt was the agent o-f the plaintiff, having authority to sell or trade the Canada land belonging to plaintiff; that as such agent Mux [61]*61feldt called at the home of defendants on several different occasions and suggested a trade of their property for the Canada land of plaintiff; that defendants positively refused to consider a trade of that character, and told Muxfeldt that under no circumstances would they be induced to buy or trade for Canada land; that as such agent he represented to defendants that plaintiff had sold or had a buyer for the Canada land at an advanced price, and that if defendants would sign a contract agreeing to make said trade or transfer, the title to the Canada land would never pass to defendants, as the land had already been sold, and that on July 1, 1912, the date when the deal was to be finally consummated, defendants would own nothing; and that they would thus sell their property and there would be a profit to the defendants in the transaction. Other representations are alleged in the answer, but defendants rely on the one just stated. There is little, if any, evidence to sustain the other alleged, representations. Defendants say they relied upon the representations and agreements of said agent, and but for them would not have executed the contract. They set up the fraud as a reason why they should not be required to execute a conveyance of their property. The defendants admit that plaintiff executed the deed to them, and that they executed a mortgage back on the Canada land, and that these things were done before July 1st, but say that Muxfeldt told them these papers would have to be executed in order to carry out the plan; that before July 1st they learned that the representations and statements of Muxfeldt that the land had been sold to other parties were not true, and learned that plaintiff would not carry out that part of the agreement, and that thereupon defendants refused to execute a conveyance of their property.

For reply plaintiff denies all allegations of the answer not admitted; admits that Muxfeldt, on or about June 12, 1912, had the right to obtain a customer for the plaintiff to sell plaintiff’s land in Canada; that while Muxfeldt obtained [62]*62the right from plaintiff to sell the Canada land he was the agent of the defendants; admits that he took possession of defendants’ property and collected rent from the tenant; says that by their acts defendants ratified the acts of Muxfeldt and are estopped from denying that he was their agent; that plaintiff informed defendants prior to the signing of the written contract that defendants should investigate the real estate of plaintiff and the value thereof, and should not rely upon any representations as to its value; that he allowed defendants opportunity to make such investigation, and that defendants will not now be heard to say that they were deceived; that Muxfeldt was not authorized to make any fraudulent statements, and that if any were so made, they were not authorized and were beyond the scope of his authority; that plaintiff had no knowledge of said representations, and now repudiates any such made by Muxfeldt; that if the court finds that the contract is void and of no effect, defendants be required to convey to plaintiff the Canada land.

By its decree the trial court found that the equities were in favor of the defendants, and dismissed the petition; it further adjudged that plaintiff is liable to defendants for whatever rent plaintiff has collected for defendants’ Davenport property, and ordered plaintiff to account to defendants therefor, and upon failure to account the defendants may have an accounting; that defendants should execute a reconveyance to plaintiff of the Canada' land, and that plaintiff shall release, cancel, and satisfy the mortgage executed by defendants to plaintiff on the Canada land and to deliver the mortgage to defendants; that plaintiff vacate and surrender to defendants the possession of the Davenport property.

Some of the minor points will be first noticed before proceeding to the real contention of the parties.

[63]*631. Real peopekty: examination by purchaser: estoppel. [62]*62I. Appellant contends that defendants had opportunity to inform themselves as to the title to the Canada land and [63]*63its value before the execution of the written contract, and by not informing themselves cannot now com- ... . plain. This is the rule in some cases where the party does examine for himself and the defects are obvious. Shuttlefield v. Neil, 163 Iowa, 470. But in this case the defendants did not see the Canada land, nor did they investigate for themselves the title to or value of the Canada land. Muxfeldt testifies that he told defendants not to take his word for what it was worth, but, “to go and inquire from Judge Boddewig, and you go to Ed Bischoff; he knows about the land up there; he made one deal for Mr. Heitman and a fellow up there now. ’ ’ Plaintiff testifies that he told defendants before the contract was signed:

If you will go out and see the land, and then if we can agree we may make a deal. That is the way I said. There is no deal made today. That is the way I want it; when I want to make a deal I want to know what I am doing; I want to see what I am getting. Q. You had seen what you were getting, hadn’t you? A. Yes, but I wanted them—

2 same • conevMence1:*1101 varmnce. But, after all, the question as to value and title of the land is not now in controversy.

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Bluebook (online)
167 Iowa 58, Counsel Stack Legal Research, https://law.counselstack.com/opinion/heitman-v-clancy-iowa-1914.