Johnson v. Quaal

83 N.W.2d 796, 250 Minn. 154, 1957 Minn. LEXIS 618
CourtSupreme Court of Minnesota
DecidedJune 28, 1957
Docket37,043
StatusPublished
Cited by5 cases

This text of 83 N.W.2d 796 (Johnson v. Quaal) is published on Counsel Stack Legal Research, covering Supreme Court of Minnesota primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Johnson v. Quaal, 83 N.W.2d 796, 250 Minn. 154, 1957 Minn. LEXIS 618 (Mich. 1957).

Opinion

Dell, Chief Justice.

This is an action for an accounting and for the conveyance to the plaintiffs of the legal title to a farm located in Lac qui Parle County. Defendant John Quaal, hereinafter referred to as the defendant, 1 appeals from a judgment determining the amount due under a contract for sale and requiring him to convey his interest in the farm to the plaintiffs.

Prior to 1943 plaintiffs admittedly were the owners of the farm subject only to a mortgage to the Federal Land Bank. On February 11, 1943, the mortgage was substantially in default, and negotiations were conducted between the plaintiffs and the bank resulting in the plaintiffs’ deeding the farm to the bank and the cancellation of the mortgage by the bank. In December 1944, pursuant to a policy of the bank of permitting borrowers who had lost their farms to repurchase them, or to designate someone else to purchase them, plaintiff Joseph Johnson certified in writing to the bank that he wanted the defendant, who had been a boyhood neighbor, to purchase the farm. This plaintiff further certified that he was making arrangements with the defendant to lease the farm so that he could stay in possession. The purchase of the farm was completed by the defendant in February 1945 and he received a deed naming himself and his wife as joint tenants. Thereafter the parties entered into several leases providing for a one-third share of the crop to the defendant and cash rent for hay and pasture. Plaintiffs remained in possession of the premises at all times. Between 1947 and 1953 substantial improvements were made on the farm by the plaintiffs. In 1953 a dispute arose between the parties resulting in the commencement of this action.

In their complaint plaintiffs alleged that at the time the defendant *156 purchased the farm from the bank there was an agreement between the parties that the $21,000 paid by the defendant to the bank was, in effect, a loan by the defendant to the plaintiffs and that the legal title to the farm was to be held by the defendant merely as security for this indebtedness. The trial court found that no such agreement had been made. However, the court did find that sometime after the defendants had acquired title to the farm the defendant entered into a verbal agreement with the plaintiffs to sell them the farm for $21,000 upon the following terms: That the plaintiffs would continue in possession; that out of the landlord’s share of the income from the farm the defendant would pay the taxes and other expenses; that defendant would be paid 5-per-cent interest on the money he had invested; and that the remainder would be applied on the interest and principal of the purchase price.

The defendant first contends that the evidence does not support the finding that there was a verbal agreement for the sale of the farm. The best evidence of the existence of such an agreement was the defendant’s own record book which was introduced in evidence by the plaintiffs. Notwithstanding certain alterations in the book, it was shown with the aid of a handwriting expert that from the time he acquired the farm in 1945 the defendant had applied the plaintiff’s payments to the purchase price of the farm, after deducting taxes, expenses, and interest on his investment. There is also a statement in evidence given to the plaintiffs by the defendant in 1947 showing “rent” received, debits for expenses, and $1,000 interest, the difference being labeled “Balance for principle [sic].” Defendant, in fact, admitted in his testimony that he had made an agreement to sell the farm to the plaintiffs but claimed that the plaintiffs had failed to carry out the agreement. This latter assertion is contrary to the defendant’s records and could well be disbelieved by the trial court. Suffice it to say that the record discloses sufficient support for the finding of the existence of a contract.

Defendant next contends that, even assuming there was an oral agreement to sell the farm, specific performance should not be granted because the agreement, as found by the trial court, is incomplete and uncertain in its terms. It is claimed that the contract is silent as to: (1) The amount of the landlord’s share of the income from the farm; (2) what the “other expenses” should be; (3) when plaintiffs should be *157 chargeable with taxes; and (4) when the interest at 5 percent should start. A review of the evidence discloses that whatever uncertainty there may have originally been in the agreement was adequately resolved by the subsequent conduct of the parties. Even though the parties may have expressed an agreement in terms so vague and indefinite as to be incapable of interpretation with a reasonable degree of certainty, they could cure this defect by their subsequent conduct and by their own practical interpretation. 2 A court of equity does not look with favor on objections of uncertainty where the subsequent conduct of the parties in reliance on the contract makes the precise acts which remain to be done clearly ascertainable and also leaves the complaining party without an adequate remedy unless the contract is enforced. 3 Here the amount of the payments made® by the plaintiffs to the defendant and the allocations made by the defendant to taxes, interest, and “other expenses” are clearly ascertainable from defendant’s own records. They were accepted by the parties and are not in dispute. On the basis of these payments and allocations it is clear, as the trial court concluded, that more than one-half of the purchase price of the farm has been paid. The only remaining act required of the defendant is certain, namely, a conveyance by the defendant of his interest in the farm. 4 The plaintiffs are obviously left without an adequate remedy unless the contract is enforced. 5

The defendant next challenges the finding of the trial court that the improvements made on the farm by the plaintiffs were made in reliance on the oral agreement. The plaintiffs’ testimony is replete with the implication that the improvements were made in reliance on a con *158 tract for sale. There is ample corroborative evidence. The improvements were of a very substantial nature, including installation of a hot-water heater, new bathroom fixtures, stool and lavatory, tiled bathroom wall and rubber tile on the floor, also rubber tile on the kitchen floor and pantry, sanding of all floors in the house, both upstairs and downstairs except the kitchen and pantry floors which were covered with tile, re-plastering the kitchen, repairing the basement foundation, scraping and refinishing all woodwork in the kitchen, pantry, and stairway, painting the house and bam, new ditching, putting a new roof on the house, installing a windmill pressure pump, constructing a cattle shed with concrete floor, comcrib, chicken coop, cesspool, new fencing, feedbins, and planting approximately 1,000 trees for shelter. There is evidence that at least some of these improvements were known and observed by the defendant and it would be quite proper to infer his consent. The trial court was well justified in concluding that these improvements and additions would not have been made by a mere tenant but rather were made in reliance on a contract for the sale of the farm.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

S O Designs USA, Inc. v. Rollerblade, Inc.
620 N.W.2d 48 (Court of Appeals of Minnesota, 2000)
Harry N. Ray, Ltd. v. First National Bank of Pine City
410 N.W.2d 850 (Court of Appeals of Minnesota, 1987)
Formanek v. Langton
134 N.W.2d 883 (Supreme Court of Minnesota, 1965)
Bohman v. Berg
356 P.2d 185 (California Supreme Court, 1960)
Cut Price Super Markets v. Kingpin Foods, Inc.
98 N.W.2d 257 (Supreme Court of Minnesota, 1959)

Cite This Page — Counsel Stack

Bluebook (online)
83 N.W.2d 796, 250 Minn. 154, 1957 Minn. LEXIS 618, Counsel Stack Legal Research, https://law.counselstack.com/opinion/johnson-v-quaal-minn-1957.