Kruger v. Agnor

32 N.W.2d 365, 321 Mich. 131, 1948 Mich. LEXIS 462
CourtMichigan Supreme Court
DecidedMay 18, 1948
DocketDocket No. 65, Calendar No. 43,441.
StatusPublished
Cited by8 cases

This text of 32 N.W.2d 365 (Kruger v. Agnor) is published on Counsel Stack Legal Research, covering Michigan Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Kruger v. Agnor, 32 N.W.2d 365, 321 Mich. 131, 1948 Mich. LEXIS 462 (Mich. 1948).

Opinion

Dethmees, J.

Richard Kruger, hereinafter called plaintiff, executed a land contract whereby he agreed to convey 80 acres of land by warranty deed to defendants and to furnish them an abstract showing-marketable title. Defendants went into possession and made improvements. Four years later defendants offered to pay the unpaid balance on the contract and asked plaintiff to forward a deed and abstract of title to a specified bank. The deed tendered by plaintiff contained a reservation of coal and mineral rights which plaintiff did not own because of reservations thereof made in 1882 on one 40-acre parcel and in 1909 on the other by predecessors in plaintiff’s chain of title. Defendants rejected the deed claiming the right to a warranty deed conveying marketable title without encumbrances. Plaintiff thereupon filed his bill in chancery praying that the land contract either be rescinded or reformed to include the reservation, alleging that its omission had resulted from mutual mistake.

*134 Defendants filed an answer denying mutual mistake and a cross bill requesting specific performance of the contract or, at least, a conveyance by plaintiff of all Ms right, title and interest in the land and that plaintiff be required to pay their damages sustained by reason of plaintiff’s misrepresentation' of his title and for breach of covenants contained in the contract. From decree dismissing plaintiff’s bill and granting defendants relief substantially as prayed for in their cross bill, plaintiff appeals.

The plaintiff testified that prior to and again at the time of execution of the land contract he told defendants about the coal and mineral reservation and that defendants said that it made no difference to them; that before signing the contract defendants examined the abstract and deed whereby plaintiff had acquired title, both of which showed the reservation ; that the contract was prepared by a scrivener, paid by both parties, who also examined the deed and abstract and knew of the reservation but inadvertently neglected to incorporate it into the contract. Plaintiff claims that it was understood and agreed by and between the parties that defendants were buying the land subject to the reservation and that defendants knew and that it was common knowledge in the vicinity that lands in that area were quite generally subject to such reservations. Defendants testified that they had no knowledge of the reservation before the purchase and that plaintiff made no mention thereof to them; that they did not see plaintiff’s deed or abstract before entering into the contract arrangement and that plaintiff had assured them that the land was “free and clear” and that “there wasn’t anything against it.” It is their claim that the scrivener prepared the contract in accord with the understanding and agreement of *135 the parties. The scrivener, called as a witness, had no recollection of the transaction whatsoever. The court, after hearing and seeing the witnesses, did not accept plaintiff’s version of the facts and in its opinion said:

“Plaintiff’s bill is based on the theory that all of the parties knew of the mineral reservation but it was not included in the land contract because of a mistake of the scrivener.

“ ‘When it is sought to reform a written instrument on account of a mutual mistake, the evidence of the mistake and mutuality thereof must be so clear as to establish the fact beyond cavil.’ Lyons v. Chafey, 219 Mich. 493.

“For similar statements as to the clear and convincing degree of proof necessary see Burns v. Caskey, 100 Mich. 94; Emery v. Clark, 303 Mich. 461, 471; Schuler v. Bucuss, 253 Mich. 479; Long v. Bibbler, 225 Mich. 261; Goldberg v. Cities Service Oil Co., 275 Mich. 199.

“Plaintiff’s proofs in this case do not attain the standard fixed by the decisions as necessary to warrant reformation.

“Plaintiff also asks rescission of the land contract because of the alleged mutual mistake of omitting the mineral reservation provisions from the contract, or the mistake of plaintiff in this regard, and the fraud of the defendants in connection therewith.

“What has been previously said as to the degree of proof or evidence of mistake necessary to warrant reformation applies with equal force to rescission on the ground of mistake. Likewise there is no satisfactory proof on the part of plaintiff of defendants’ alleged fraud, and fraud cannot be presumed, but must always be proved by him who alleges it * * *

“Rescission of a contract cannot be sustained in the absence of mutual mistake or unilateral mistake *136 induced bv fraud. Trembert v. Mott, 271 Mich. 683 (38 N. C. C. A. 283).

“Plaintiff has not established by a preponderance of clear, convincing evidence that there was a mutual mistake in the omission of a mineral reservation, from the land contract. Neither has he established that defendants were guilty of any fraud inducing such omission.”

While we hear the case de novo, a careful reading of the record does not persuade us that, had we occupied the position of the court below, we would have reached a different conclusion as to the facts. There is no error in the trial court’s above-quoted statement of the legal tests to bo applied where the relief sought is rescission or reformation of the land contract. Plaintiff’s bill of complaint was properly dismissed.

That upon performance of their obligations under the contract defendants are entitled to a conveyance in accord with its terms there can be no doubt. Plaintiff, being unable to convey marketable title as agreed, should be required to respond in damages for breach of the covenant in that regard. In Holden v. William Tait Realty Co., 216 Mich. 633, we quoted with approval from 36 Cyc. p. 740, the following:

“ ‘Although the purchaser cannot have a partial interest forced upon him, yet if he entered into the contract in ignorance of the vendor’s incanacity to give him the whole, he is generally entitled to have the- contract specifically performed as far as the vendor is able, and to have an abatement out of the purchase money for any deficiency in title, quantity, or quality of the estate. This is not making a new contract for the parties, since the vendor is not compelled to convey anything for which he did not agree to convey, and the vendee pays for what he gets according to the rate established by the agreement.’ ”

*137 In Stauch v. Daniels, 240 Mich. 295, and in Drysdale v. Marheine, 240 Mich. 529, we held that where a vendor contracted to sell land but owned only a portion thereof, the vendee in a suit for specific performance has the right to elect to take partial performance to the extent of the vendor’s ability to perform and have proportional abatement of the contract price. To the same effect see Nelson v. Geib, 162 Mich. 410. See, also, 14 Am.

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Bluebook (online)
32 N.W.2d 365, 321 Mich. 131, 1948 Mich. LEXIS 462, Counsel Stack Legal Research, https://law.counselstack.com/opinion/kruger-v-agnor-mich-1948.