Johnson v. Childs

6 V.I. 354, 1968 U.S. Dist. LEXIS 12829
CourtDistrict Court, Virgin Islands
DecidedMarch 15, 1968
DocketCivil No. 115-1967
StatusPublished
Cited by1 cases

This text of 6 V.I. 354 (Johnson v. Childs) is published on Counsel Stack Legal Research, covering District Court, Virgin Islands primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Johnson v. Childs, 6 V.I. 354, 1968 U.S. Dist. LEXIS 12829 (vid 1968).

Opinion

MARIS, Circuit Judge

OPINION

Before me for determination is a motion for a new trial filed by the plaintiffs in the above entitled case which was tried before me without a jury at Christiansted on February 9,1968. The suit was brought to recover a down payment which the plaintiffs had made to the defendant under a contract for the purchase of a dwelling house and plot of ground in St. Croix. The defendant filed an answer and a counterclaim seeking damages for the plaintiffs’ failure to purchase the property pursuant to the contract. The facts are fully set out in the findings which I announced at the close of the trial from which I quote as follows:

“The agreement of purchase and sale was dated May 3, 1966, and provided for a down payment of $3,950.00, the balance of $38,350 to be paid in cash at the time of closing, which was fixed as of June 30,1966... .
“The estate of William St. Clair Childs, Jr., was being administered in New York and an ancillary administration was taken out in this court in St. Croix.
[357]*357“The plaintiffs paid to the defendant the down payment by a check drawn to Mr. John F. James, his attorney and resident agent under the statute. They paid, as I said, the sum of $3,950.00 representing the deposit.
“The sale was never closed. The purchasers, the plaintiffs here, sought a first mortgage from the Chase Manhattan Bank. This mortgage was declined, although there is some indication it was orally suggested it might have been granted in a lesser amount than they had applied for. The plaintiffs testified that they had other sources of funds they could have used but they had no written commitment from anyone for the funds needed to make the closing. As a matter of fact they never did make a tender of the balance of the purchase price to the defendant, the seller, as • required by the contract.
“It appears that by consent of both parties the time of closing was postponed, it was understood it would be later and there was an effort on both sides to come to a time of closing, which, as I say, never was reached.
“The seller, the defendant here, was under the impression that the order permitting the sale in New York State in the probate proceedings there would be adequate. The District Court Commissioner concluded that it was necessary to have an express approval here and it was necessary in that connection to have the written consent of the parties in interest in the estate of William St. Clair Childs, Jr. The necessity for securing this consent, in addition to the fact that the District Court Commissioner was off the island on vacation in October and November 1966 resulted in his approval not being obtained until November 23, 1966. From that time on the plaintiffs here, having decided that they no longer desired to purchase this property, had sought to sell their contract, to secure someone else to take over the transaction, contacting real estate brokers in the island and this proved unsuccessful.
“They had, as permitted by the contract, taken possession of the house as a residence in May 1966 and their contention is the house was really not complete and somewhat inadequate for their purposes and for residence with their family and it would be necessary to enlarge it and make improvements. They made some improvements but they didn’t do what they fully intended because they didn’t acquire title and they didn’t wish to do so until [358]*358they had acquired title. They remained, however, ■ in the property until October 20th, a period of five months, aproximately, in which they were in possession. After October 20th they vacated the property and subsequently they turned over the keys to the defendant. As a matter of fact they then, at some subsequent time, purchased another property to which they took title and where they are now living.
“Likewise the defendant, this contract not having been consummated by closing, sought to sell the property to someone else, succeeded in doing so at a reduced- price, and with the approval of this court, through the District Court Commissioner, under date of September 26, 1967 effected a sale of the same property to Stewart B. Meedy and Mary Van Inghen Meedy for the sum of $38,500. The commission which had to be paid -on the second sale was $2,310.00, which made the net proceeds of that sale to the estate $36,190.00. The difference between that sum • and $42,300.00, the purchase price under the - agreement between the parties here, would be $6,110.00. This obviously is an element of loss to the estate if the plaintiffs are responsible for it. -
“In addition the plaintiffs;, as I have said, occupied the property for five months, or a little bit more. I find that the fair rental value of the dwelling house, the property here involved, in its condition at the time when it was rented, and without considering the improvements made by the plaintiffs’ was $400.00 a month. For five months this amounts to $2,000.00, which is an item that the plaintiffs are obligated to pay to the defendant’s estate.
“The plaintiffs assert- that they cancelled this agreement on October 5, 1966, and they rely upon a letter written by their counsel, Mr. Isherwood, to Mr. James, counsel for the Executor, in which it is- stated that they would like to cancel the agreement, as they have found other property which will meet their requirements, without further delay. They will, of course, reimburse the estate for the fair rental value of the premises but they do not wish to be considered in default as they have been ready, willing and able to close since the closing date. I find that this did not have the effect of a cancellation because it was the duty of the plaintiffs to make a tender of the balance of the purchase price if they desired to hold the defendant-executor liable for breach of contract. This they never did, although asserting they were prepared to, they didn’t actually do it.
[359]*359“On the other hand. the defendant-executor acquiesced in the delay. So far as the delay on his part is concerned it was necessary to procure approval of the court. It is quite clear to the Court that the parties acted throughout this period of time in an effort to accommodate each other, trying to close this contract if they could, until the time when the plaintiffs found another property and decided they didn’t want to go through with this deal and wrote the letter in question. But even after that they proceeded, as I have said, to seek to sell the property for their account, treating it as though they were still obligated, as, indeed, I think they were.
“Under these circumstances the estate has suffered a loss by reason of the plaintiffs’ failure to comply with their agreement to pay the balance of the purchase price after the time when by the approval of the court it was possible for the defendant to proceed to give good title. And this loss the estate has suffered amounts to $6,110.00.
“The executor is claiming additional items with respect to the taxes, interest, insurance, attorney’s fees; these I regard as too remote and I am not allowing these as elements of damage for which the plaintiffs are responsible.

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6 V.I. 354, 1968 U.S. Dist. LEXIS 12829, Counsel Stack Legal Research, https://law.counselstack.com/opinion/johnson-v-childs-vid-1968.