Homer v. Lorillard

6 V.I. 558, 1967 V.I. LEXIS 1
CourtMunicipal Court of The Virgin Islands
DecidedDecember 20, 1967
DocketCivil No. 545-547-1966
StatusPublished
Cited by17 cases

This text of 6 V.I. 558 (Homer v. Lorillard) is published on Counsel Stack Legal Research, covering Municipal Court of The Virgin Islands primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Homer v. Lorillard, 6 V.I. 558, 1967 V.I. LEXIS 1 (vimunict 1967).

Opinion

JOSEPH, Judge

[563]*563OPINION

Plaintiff has filed herein her complaint alleging, in substance, that she entered into a written contract for the purchase of certain real estate from defendants Lorillard and Richard; that said property had previously been shown to her by defendant Saunders as real estate agent; that all defendants represented to her that the said property ran across the face of the hill on which it was located, with a small strip of land at the right side of the plot running down the hill; that pursuant to the terms of the contract and solely in reliance upon the said representations, she paid defendants the sum of $2,000 by check made payable to defendant Saunders as a down payment on the said property; that she purchased the property solely for the purpose of residing thereon and building another house there for rental purposes; that defendant Richard also represented that there was sufficient room to build a house next to the house on the property; that she subsequently discovered that the property did not lie as represented to her and that the property shown to her as that being purchased was not “completely owned” by defendants; that she is ready and willing to accept a deed for the property as represented but defendants are unable to convey, as they do not own it all.

Plaintiff also alleges, as a second cause of action, that she incurred damages in the amount of $900 by virtue of the representations of defendants. By way of relief plaintiff asks that the sales agreement be cancelled and that defendants be ordered to return to her the sum of $2,000 paid on said agreement and, secondly, that defendants be adjudged liable for $900 as damages, both claims with interest. The complaint also contains a prayer for costs and attorney’s fees and for general relief.

[564]*564Defendants have filed a motion to dismiss as to all defendants, alleging by supporting memorandum, (1) that the relief sought is equitable, (2) that the Municipal Court is without jurisdiction of suits in equity except writs of injunction or relief heretofore available by mandamus, and (3) that defendant Saunders is not a proper party defendant as he was acting as agent for defendants Lorillard and Richard. A memorandum in opposition has been filed by plaintiff.

Treating defendants’ contentions in order, it does not appear that plaintiff’s first cause of action is a matter cognizable only by courts of equity. The theory of plaintiff’s action is, according to the complaint, that she agreed to purchase certain land shown to her and defendants have rescinded the contract in that they are unable to perform it because they do not own all of the land. She asks in the first count that the agreement be “cancelled” and for restitution of the money she paid pursuant to it. In the second count she prays for damages she incurred in obtaining the money to meet her contractual obligations.

Plaintiff has made no allegation of fraud or bad faith. She merely states that representations were made by defendants which she later discovered to be untrue. The fact that plaintiff asked for “cancellation” of the contract is not controlling in determining the nature of the remedy sought.

In the case of Buzard v. Houston, 1886, 119 U.S. 347, plaintiff sought the annulment of an assignment of a contract for the sale of cattle and the reinstatement of a contract. The court found that a court of law, in an action for deceit, could afford a full, adequate and complete remedy, stating at page 352:

“* * * a suit in equity to enforce a legal right can be brought only when the court can give more complete and effective relief, [565]*565in kind or in degree, on the equity side than on the common-law side; as, for instance, by compelling a specific performance, or the removal of a cloud on the title to real estate; or preventing an injury for which damages are not recoverable at law * * * ; or where an agreement procured by fraud is of a continuous nature, and its recission will prevent a multiplicity of suits * * *.
“In cases of fraud or mistake, as under any other head of chancery jurisdiction, a court of the United States will riot sustain a bill in equity to obtain only a decree for the payment of money by way of damages, when the like amount can be recovered at law in an action sounding in tort or for money had and received.”

The same principles were set forth in Wenzel & Henock Const. Co. v. Metropolitan Water District, D.C. Cal., 18 F.Supp. 616, as follows:

“But whether a cause of action is legal or equitable does not depend upon the form adopted, or the name which the pleader may have given to it. It depends upon the facts pleaded or the remedy sought. If the facts pleaded are such that their determination depends upon the application of the principles of equity, jurisprudence, the action is equitable. If the remedy sought calls for the exercise of the powers which only a chancellor can exercise, the cause of action is, likewise equitable. * * * To call for the intervention of a court of chancery, it is still necessary * * * to allege special equitable grounds. * * *
i( * ❖ $
“Courts of equity have declined repeatedly to exercise jurisdiction in cases of fraud where relief could be obtained at law. And this, despite the fact that recovery at law could not be had without the court defeating or annulling, upon the ground of fraud, some preliminary instrument, such as a deed, agreement, release, settlement or the like.”

Extremely careful and detailed consideration was given to the history, nature and application of the remedy in cases such as the case at hand in Philpott v. Superior Court in and for Los Angeles County, Cal., 1934, 36 P.2d 635. In that case also the question for determination was whether such an action is legal or equitable. The court noted:

[566]*566"The far reaching importance of this inquiry is seen when it is remembered that the jurisdiction of both the appellate and the trial court is directly affected by the answer thereto.”

There plaintiff had entered into a contract for the purchase of corporate stock, and paid $625 pursuant thereto. He filed suit alleging that he had been induced to enter into the contract by fraudulent misrepresentation of material facts and that he had, upon discovering the fraud, rescinded the contract. He asked for the return of the $625 with interest and costs and for general relief. The court, sitting in banc, found that equity did not have jurisdiction as a full, adequate and complete remedy existed at law. The nature of the legal remedy, where the plaintiff has elected to waive the tort and sue for recovery of the money paid rather than for damages suffered from the tort, was held to be on the promise implied by law to return the money. This promise is implied upon the equitable principle of preventing unjust enrichment but the action is at law for assumpsit under the common counts of money had and received, and is an action ex contractu.

The holding in Philpott was summarized by the author of the decision, Justice Preston, in another case decided by that court on the same day, McCall v. Superior Court,

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762 F. Supp. 661 (Virgin Islands, 1991)
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Cite This Page — Counsel Stack

Bluebook (online)
6 V.I. 558, 1967 V.I. LEXIS 1, Counsel Stack Legal Research, https://law.counselstack.com/opinion/homer-v-lorillard-vimunict-1967.