Lamar v. Detroit Apartments Corp.

211 N.W. 643, 237 Mich. 206, 1927 Mich. LEXIS 510
CourtMichigan Supreme Court
DecidedJanuary 3, 1927
DocketDocket No. 5.
StatusPublished
Cited by3 cases

This text of 211 N.W. 643 (Lamar v. Detroit Apartments Corp.) 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
Lamar v. Detroit Apartments Corp., 211 N.W. 643, 237 Mich. 206, 1927 Mich. LEXIS 510 (Mich. 1927).

Opinion

Steere, J.

This suit is for specific performance of a land contract entered into on January 8, 1920, between plaintiff, Lamar, and defendant Detroit Apartments Corporation. The property involved is known as lot 1, block 3, E. C. Van Husan’s subdivision, located at the southeast corner of Sheridan and Canfield avenues, and at the time the contract was entered into the defendant corporation had practically completed erecting upon the property three two-apartment bungalows, known as 972 Sheridan avenue, 1342 and 1344 Canfield avenue east. The purchase and sale was through the Hannan Beal Estate Exchange as broker for the vendor. The price for the property was *208 $25,000, $500 of which, was paid on the signing of the agreement, $2,500 on or before March 1, 1920, and the balance of $22,000 in quarterly installments of $600 each or more including interest at 6% per annum on deferred payments.

Plaintiff did not pay the $2,500 installment falling due on March 1, 1920, and his failure to do so resulted in notice of default and claimed cancellation of the contract, which gave rise to this litigation. Plaintiff’s vocation is not disclosed beyond the fact he states that he “had been in the habit of buying and selling real estate.” The defendant corporation is an artificial legal entity of defendant Morris’ creation, of which he said he was practically the owner and “sole boss,” that he and his wife “are the only two that are pecuniarily interested,” and he had held all but two shares since its organization. He is a real estate operator, who in effect admitted organizing himself into corporations with dummy directors for conduct of his business, conducting it in their name or his own as deemed expedient. Of the two shares in this corporation which he did not own, one was held by his wife, who was in California in 1920, and the other by an employee named O’Neill who acted as its president. In this transaction it can be said without violence to any rule of right that Morris and the Detroit Apartments Corporation are one and the same thing and may be hereafter so referred to. Defendants Davis and Strieker are subsequent purchasers from Morris of this property under contract, and innocent participants in this entanglement.

Shortly before January 1, 1920, when the three bungalows were approaching completion, defendant listed the property with the Hannan Real Estate Exchange, and its contract sale to plaintiff was effected through a Hannan salesman named Scott who got in touch with plaintiff and showed him the property. At that time the buildings were, as Morris claims, *209 substantially finished, four of the six apartments being occupied by tenants before January 8, 1920. The negotiations resulted in the contract in issue here after plaintiff, in company with Scott, had inspected the property to his satisfaction. At that time, as plaintiff testified, he pointed out to Scott certain imperfect work and absence of things essential to finished dwellings. It is not denied that a few things were required for proper completion of these buildings with modern conveniences as plaintiff pointed out to Scott, and provision was made for them in the contract, as follows:

“It is understood between the parties hereto that all electric fixtures, window shades and screens are included in the purchase price.

“Party of the first part agrees to grade and sod the lawn as soon as weather permits and to otherwise finish the construction of above premises in a thorough workmanship manner.”

Although possession was to be given on or before March 1, 1920, at which time the $2,500 payment was to be made, it is not shown Lamar ever took possession. Before March 1, 1920, Scott spoke to Lamar about making the payment due on that date, but Lamar claimed to have visited the premises, and, finding that the repairs promised had not been made, he told Scott that he would not make the payment until such repairs had been made and the premises put in proper condition. Morris denies that he ever was advised that Lamar based his failure to make the payment of $2,500 on March 1, 1920, on the buildings’ not being completed. There is testimony of interviews and claimed promises in that connection between Lamar and Scott, but Lamar did not make or tender the payment of $2,500 when it fell due or for several months thereafter, nor personally communicate with Morris, who did not know Lamar, or where he lived.

*210 On March 12,1920, Morris instructed Scott by letter as follows, as shown by his verified carbon copy:

“Please be advised that your client has failed to fulfill his agreement for the purchase of my bungalows and if he desires to renew his option on the purchase, I will consider same upon the payment of $500, if the deal will be closed previous to April 1st, or upon the payment of $1,000 if the deal be closed on or before May 1st. My reason for being obliged to submit this proposition is because I have another chance for the sale of them. Immediate action is necessary.”

Scott denied receiving such letter. Various communications between the parties through Scott as intermediary took place upon which the testimony is not altogether harmonious, but on May 7, 1920, Morris wrote Lamar as follows:

“Will you be good enough to advise me by return mail whether or not it is your intention to carry out your contract relative to purchasing property at Can-field and Sheridan.”

To this Lamar replied on May 8, 1920:

“Am told that there is a great deal to be done to the property at Canfield and Sheridan before same will be in order. When it is in proper shape shall be pleased to take up the matter of closing the deal with you.”

Soon after entering into this contract, Lamar put the property in the hands of the Hannan Real Estate Exchange for sale through Scott. On May 17, 1920, a Hannan agent named Richards found defendant Davis as a prospective purchaser of the Sheridan avenue property at a price of $11,000 and secured from her a written offer to purchase, through the Hannan agency without naming the vendor, under a contract with deferred payments extending over a period of time, accompanied by a deposit of $300. Richards turned over the money and written offer to Scott who later turned them over to Lamar, who accepted the proposal and deposit, conditionally, as he claimed, but *211 never returned the deposit, stating he did not make any agreement to complete the building as he expected that would be done before the property would be delivered to the purchaser.

Lamar also states that he received another deposit on the rest of the property but returned it upon demand by the prospective purchaser for delivery of possession of the easterly of the two Canfield avenue apartments, as he would not enter into a final agreement “because I did not want to fix it up when I was promised to have it fixed up.” Further activities on the part of Richards resulted in*his obtaining an offer to purchase the two Canfield avenue places from defendant Strieker.

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Cite This Page — Counsel Stack

Bluebook (online)
211 N.W. 643, 237 Mich. 206, 1927 Mich. LEXIS 510, Counsel Stack Legal Research, https://law.counselstack.com/opinion/lamar-v-detroit-apartments-corp-mich-1927.