L. P. Courshon Co. v. Brewer

245 N.W. 354, 215 Iowa 885
CourtSupreme Court of Iowa
DecidedNovember 22, 1932
DocketNo. 41470.
StatusPublished
Cited by3 cases

This text of 245 N.W. 354 (L. P. Courshon Co. v. Brewer) is published on Counsel Stack Legal Research, covering Supreme Court of Iowa primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
L. P. Courshon Co. v. Brewer, 245 N.W. 354, 215 Iowa 885 (iowa 1932).

Opinion

Kindig, J.

— This action was commenced by the plaintiffsappellees L. P. Courshon Company and L. P. Courshon on the theory that the defendant-appellant Helen M. Brewer breached her contract to purchase the “L. P. Courshon one-stop service station” in Mason City, including the good will of the business, a Firestone Tire & Rubber Company contract and franchise, furniture, fixtures, equipment, and merchandise.

*887 According to the appellees, the alleged contract was entered into between them and the appellant on or about December 11, 1930. It is asserted by the appellees that the appellant agreed to pay them under the contract: First, $2,000 for the good will of the business and the Firestone Tire & Rubber Company contract and' franchise for the local territory; second, $3,870.29 for the merchandise on hand; and, third, $3,500 for the furniture, fixtures and equipment used in the business. The appellees’ petition is divided into three counts.

At the time the contract was entered into, the appellant placed in escrow a check for $2,000 to cover the sum above specified for the good will of the business and the Firestone Tire & Rubber Company contract and franchise. Such check was to be delivered to appellees after the parties had agreed upon an inventory and valuation of the aforesaid merchandise, furniture, fixtures, and equipment. An inventory was made, and the jury found a valuation agreed upon. Accordingly, the appellant took over the business and placed her employees in charge thereof. Later, however, she refused to.settle according to the terms agreed upon, and the appellees sought, by an action in spcific performance, to, compel her to perform the contract. That relief was denied by the district court upon the theory, it seems, that the appellant had performed the contract in all respects except to pay the purchase price above agreed upon, Consequently the district court apparently considered that the appellees could obtain the only remaining relief necessary at law. Thereupon the appellant, the jury found, abandoned all the property except the Firestone Tire & Rubber Co. franchise and contract, which she kept. So the appellees, the jury found, in order to minimize damages, after the notice to appellant, reappraised the merchandise, furniture, fixtures, and equipment, took possession thereof as the latter’s agent, and then sold the property on her account.

In the first count of their petition, the appellees seek to recover the difference between the contract and the resale price of the merchandise, furniture, fixtures, and equipment. Then, in. the second count, the appellees attempt to obtain from the appellant certain rents and expenses of the resale; while in count three the appellees demand $2,000 on the aforesaid check executed by the appellant to the appellees for the Firestone contract and franchise.

I. A controversy arises between the parties concerning the measure of damages on that part of the contract relating to the mer *888 chandise, furniture, fixtures, and equipment. As before indicated, the appellees seek to recover the difference between the contract price of this property and the amount received therefor on the resale.

This theory of recovery, the appellant declares, has no basis in the law. 'Especially is this true, the appellant contends, under the Uniform Sales Act adopted by the Iowa legislature. See Chapter 435, Title 24. Under that act, the appellant claims that there were only two remedies available to the appellees in the event the former breached her contract to purchase the personal property. These ■remedies are in the alternative. The one, according to the appellant, would permit the appellees to rescind the contract and receive back the property (see Section 9990, 1931 Code), and the other would entitle them to sue for the purchase price due under the agreement (see Section 9992, 1931 Code). That is true, the appellant argues, because under the appellees’ theory title had passed to her and she had possession of the property. Therefore, the appellant urges that after title passed to her and she had possession of the property, the ■appellees had no lien on the same for the purchase price, and the provisions of Section 9983 of the 1931 Code do not apply. A concession is made by the appellant that the appellees might have sold the property in question on her account after title passed, providing the -Sellers • still had possession thereof. See Hawkeye Security Fire Insurance Co. v. Central Trust Company of Des Moines, 208 Iowa 573. At this juncture, emphasis is placed by the appellant upon the fact that not only the title in the case at bar vested in her under appellees’ theory, but that possession also had passed.

It is true, as the jury evidently found, that title to the property purchased had passed to the appellant. Likewise that body found that appellant had possession of the property when she later abandoned the same without paying therefor. There is nothing in the Uniform Sales Act, adopted in this state, covering the situation here presented. After the appellant’s abandonment of the property, the appellees were confronted with an anomalous situation. Necessity seemed to demand that appellees resell the property on appellant’s behalf and apply the proceeds on the contract price. This procedure appeared essential for the purpose of minimizing damages,

The Uniform Sales Act is evidently not intended as a substitute for the entire law merchant existing before its adoption. So, in any case not provided for in the-Uniform Sales Act, the rules of law and equity included in the law merchant continue to apply to *889 contracts for the sale of goods, wares, and merchandise. Sec. 10002, 1931 Code. See also Uniform Sales Act, Annotated, Yol. I (Edward Thompson Co.), pp. 444-5, sec. 73, and notes. Under the law merchant existing in this state at the time the Uniform Sales Act was adopted, a seller, after title and possession had passed to the buyer and he then abandoned the property without paying therefor according to the contract, might retake possession of the property after notice to the buyer, sell the same on the buyer’s behalf, and apply the proceeds received therefrom on the purchase price, Smith & Son v. Bloom, 159 Iowa 592; Katz v. Delohery Hat Co., 118 A. 88 (Conn.); Uniform Laws. Annotated, Yol. I (Edward Thompson Co.), pp. 326-7.

According to the facts presented in this record, the title to the property involved passed from the appellees to the appellant. She took possession thereof and later abandoned the same without paying therefor, according to the terms of the contract. Appellees, then, for the purpose of minimizing damages, retook possession of the property on appellant’s behalf after serving due notice on her. Whereupon appellees appraised the property, informed appellant of the appraisal, and sold the goods, wares, and merchandise in good faith on her behalf. All the proceeds were applied on the contract price and recovery is now sought by appellees for the remainder. Manifestly the appellees followed a proper method and sought a proper remedy.

II, While a somewhat indifferent claim is made by the appellant that no contract of sale was ever entered into between her and the appellees, the jury, on substantial evidence and under proper instructions, found otherwise. Therefore, further discussion of this proposition is unnecessary.

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245 N.W. 354, 215 Iowa 885, Counsel Stack Legal Research, https://law.counselstack.com/opinion/l-p-courshon-co-v-brewer-iowa-1932.