Krauss v. Litman

56 A.2d 37, 189 Md. 394, 1947 Md. LEXIS 365
CourtCourt of Appeals of Maryland
DecidedDecember 12, 1947
Docket[No. 51, October Term, 1947.]
StatusPublished
Cited by11 cases

This text of 56 A.2d 37 (Krauss v. Litman) is published on Counsel Stack Legal Research, covering Court of Appeals of Maryland primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Krauss v. Litman, 56 A.2d 37, 189 Md. 394, 1947 Md. LEXIS 365 (Md. 1947).

Opinion

Marbury, C. J.,

delivered the opinion of the Court.

This is an appeal from orders of the Circuit Court No. 2 of Baltimore City overruling the separate demurrers of *396 the appellants to a bill of complaint for specific performance filed against them by the appellees. '

The bill alleges that the appellants, owning a fee simple unimproved lot of ground in Baltimore City as tenants by the entireties, were engaged in July, 1946, in the construction of a dwelling house and garage thereon. At that time the appellees-eomplainants, started negotiations with the appellants to purchase the lot and improvements when the same were completed in accordance with the plans and specifications then submitted to the appellees. These negotiations, in which the appellant, Mollye Krauss, actively participated, resulted in appellants’ offer to sell to the appellees the lot and to complete the improvements thereon for the sum of $25,400 of which $5,000 was to be paid in cash and the balance was to be paid at the time of the consummation of the transaction, which time was to be after the improvements had been entirely completed. All of these terms were to be incorporated in a written agreement to be signed by the parties hereto. The appellees accepted the offer, and on August 3, 1946, paid $5,000 and had an agreement prepared in accordance with the terms of their verbal agreement. This agreement, which is filed as Complainants’ Exhibit No. 1, was left with George W. Krauss, one of the appellants, who, it is stated, acted as agent and servant of Mollye Krauss. It shows four lines at the bottom, at the end of each is the word “Seal”, and under each line is the name of the party supposing to sign on that line. These names in order are George W. Krauss, Mollye Krauss, Harry Litman and Selma Litman. Attached to the agreement is a notary’s certificate of acknowledgment which is to be made on a blank day in August, 1946, by George W. Krauss, “one of the sellers”, and Harry Litman, “one of the buyers”.

The bill further states that thereafter George W. Krauss demanded additional payments on account of the purchase price on a plea that unless they were made, appellants would not have sufficient money to complete the improvements, and that relying on the agreement of sale the appel *397 lees made additional payments on September 16, 1946, of $1,000, on September 23, 1946, $2,900, and on November 28, 1946, $2,100, making a total paid of $11,000, and it is stated that “this money was used for the construction of certain improvements”. Meanwhile, the contract of sale was not executed and delivered to the appellees. In the early part of December, 1946, George W. Krauss asked for additional payments and appellees told him no additional money would be paid until the contract of sale was duly signed and delivered. Thereupon George W. Krauss delivered to the appellees the contract of sale, executed by him, but not by his wife, Mollye Krauss. The agreement submitted is filed as Complainants’ Exhibit No. 2. It is apparently a typewritten copy of Complainants’ Exhibit No. 1, with certain omissions and additions and certain other changes are made in ink. There is a change in the purchase price from $25,400 to $26,000. A warranty clause is omitted, the date of completion is fixed at January 1, 1947 instead of October 15, 1946, there is a credit of $11,000 and there is a penalty provided of $3 a day for each day after January 1, 1947. This agreement contains the same provision for execution and acknowledgment as that in Complainants’ Exhibit No. 1. It was signed by George W. Krauss on the line provided for his signature, but the line left for Mollye Krauss’s signature was vacant. As filed, it also contains the signatures of the appellees on the lines provided for them. The bill states that in addition to the payments of $11,000 made prior to the delivery of this written agreement, the appellees also, at the request of Mr. Krauss, paid to certain material men, furnishing material for the house and garage, sums aggregating $216.35. At the time of the filing of the bill of complaint all improvements had not been finished, but on January 15,“ 1947, counsel for the appellants called Harry Litman, one of the appellees, and told him that the appellants did not intend to convey the property in accordance with the contract of sale, and that the latter could not be enforced because of the failure of Mrs. *398 Krauss to sign. The bill further avers that the appellants have performed all their requirements, that they are willing and ready to pay the balance of the purchase price, and they ask that the. agreement, Complainants’ Exhibit No. 2, may be specifically enforced, that the appellants be required to complete the improvements in accordance therewith, and to convey the premises in accordance with the terms of the contract upon payment of the balance of the purchase money. There was also a prayer for further relief. The appellants filed separate demurrers in which they alleged, among other things, that the contract is not enforceable by reason of the Statute of Frauds, that the Court cannot enforce the agreement against the defendant, Mollye Krauss, and that the complainants have a full, complete and adequate remedy at law. These demurrers were overruled in separate orders.

The appellants show that there is nothing in the bill of complaint alleging that either agreement was ever submitted to Mollye Krauss or that she agreed to either of them, that there is nothing to show in what manner she actively participated in the negotiations leading up to the oral offer, nor is there anything to show that she received any of the payments of money. They cite the case of Weininger v. Weininger, 140 Md. 227, 117 A. 568, in which the Court found that the proof sustained the allegations of the bill as to the husband, but as the estate was by the entireties, specific performance could not be decreed against the husband alone. They also contend that there is no allegation of part performance, as payments are not so considered, citing Boehm v. Boehm, 182 Md. 254, 34 A. 2d 447. Therefore, as to Mollye Krauss, there are not sufficient allegations even of an oral contract, and such a contract could not be enforced against her, if there were such allegations. Since the property is held in tenancy by the entireties, and the contract signed by George W. Krauss alone cannot be specifically enforced, the only remedy left to the *399 appellees is to proceed in law against the appellant, George W. Krauss.

It is quite apparent from the record that it was the intention of the appellees that a written contract should be entered into by both of the appellants. Whether they waived this requirement by accepting the contract signed by George W. Krauss, is not important at this stage of the matter. As to Mollye Krauss, we have a situation somewhat similar to that in the recent case of Kaufmann v. Adalman, 186 Md. 641, 47 A. 2d 755. In that case the allegations show prospective vendors and vendees had orally agreed on the terms and conditions of a lease, and a written lease had been prepared. The attorneys for both parties had practically accepted the lease prepared, with the exception of certain minor changes.

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Cite This Page — Counsel Stack

Bluebook (online)
56 A.2d 37, 189 Md. 394, 1947 Md. LEXIS 365, Counsel Stack Legal Research, https://law.counselstack.com/opinion/krauss-v-litman-md-1947.