Lyman v. Gedney

29 N.E. 282, 114 Ill. 388
CourtIllinois Supreme Court
DecidedJune 13, 1885
StatusPublished
Cited by56 cases

This text of 29 N.E. 282 (Lyman v. Gedney) is published on Counsel Stack Legal Research, covering Illinois Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Lyman v. Gedney, 29 N.E. 282, 114 Ill. 388 (Ill. 1885).

Opinion

Mr. Justice Scholfield

delivered the opinion of the Court:

This was a hill for the rectification and specific performance of an agreement to exchange and convey certain real estate in the city of Ottawa. The court below decreed in conformity with the prayer of the bill, and the case is brought here by the appeal of the defendant.

After some preliminary discussion, which was protracted, the parties signed an agreement, written in pencil, as follows:

“H. E. Gedney agrees to convey to E. D. Lyman, by Sept. 1, the N. J of the N. of lot No. 2, in block 11, by good and sufficient warranty deed, subject to mortgage of $4000, to Geo. E. and A. ’Keep, with interest accruing thereon from July 11, 1SS3, and a piece of ground 10 by 40 in rear thereof, on following terms, (namely, known as the Cook & Glover block): Lyman is to pay Gedney $8500, in cash or mortgages, by Sept. 1, 1883; also, to convey by good title the two lots of ground known as the Geo. H. Norris or Hickling property, being a two-story brick house, standing, etc., on lots 5 and 6, block 2, Walker’s add. to Ottawa. Gedney is to have the use of all rents of property on the N. of the N. i of lot 11, in block 11, till Nov. 1, 1883; also, to have use of Norris or Hickling property by Sept. 1, 1883. Gedney is to transfer to E. D. Lyman on Nov. 1, 1883, all his insurance policies on the tliree-story brick building conveyed to him, amounting to not less than $10,000, by renewing for one year any policies expiring before 'Nov. 1, 1883; and Lyman is to assign to Gedney his insurance policy amounting to...... on the Norris or Hickling property. Gedney and Lyman bind themselves in the sum of 1000 dollars, as liquidated damages, to fulfill above agreement.
“Witness our hands this 24tli day of Aug., 1883.
H. E. Gedney,
E. D. Lyman.”

At the time of signing this, the parties mutually agreed that Duncan McDougal, an attorney at law, should draw up a more formal instrument, written in ink, evidencing the agreement, which they would sign on the next day. Accordingly, he drew up the following, which was subsequently signed by the parties:

“This agreement, made this 24th day of August, A. D. 1883, by and between Henry E. Gedney, of the city of Ottawa, in the county of LaSalle, and State of Illinois, party of the first part, and E. D. Lyman, of the same place, party of the second part:
“Witnesseth, that if the party of the second part shall first make the payments and perform the covenants hereinafter mentioned on his part to be made and performed, the said party of the first part hereby covenants and agrees to convey by good and sufficient warranty deed, subject to a certain mortgage in favor of George E. and A. Keep, given to secure the sum of $4000, together with interest accruing thereon from July 11, 1883, which the party of the second part assumes and agrees to pay, the lots, pieces or parcels of land situated in the county of La Salle, and State of Illinois, known and described as follows, to-wit: the north half of the north half of lot two (2), in block eleven (11), in the original town (now city) of Ottawa; also, a strip of ground ten feet wide, extending along the east end of said strip of ground, being the same piece of ground described in the deed to the party of the first part. The party of the first part reserves the possession and accruing rents of said property until the 1st day of November, 1883, notwithstanding said conveyance may be sooner made without such reservations. The party of the first part further agrees to transfer to the party of the second part all insurance policies upon said property, to the amount of $10,000, at the time of the execution and delivery of said deed, and at his own expense renew, for the period of one year, any of said policies that may expire up to November 1, 1883. The party of the first part further agrees that his wife will join him in said conveyance, to the extent of relinquishing her dower right therein.
“The party of the second part covenants and agrees to pay the party of the first part the sum of -$S500 in cash, or good notes and mortgages that are acceptable to the party of the first part, and convey to the party of the first part, by good and sufficient warranty deed, free and clear of all incumbrances, the following described lots, pieces or parcels of land situated in the county of LaSalle, and State of Illinois, known and described as follows, to-wit: lots 5 and 6, in block 2, Walker’s addition to the town (now city) of Ottawa, together with all and singular the appurtenances and privileges thereunto belonging or in anywise appertaining. The party of the second part agrees to assign and transfer, at the time of the delivery and execution of said deed, all the insurance policies then upon the property above described, known as the ‘Norris or Hickling property.’
“It is mutually agreed by the parties hereto, that the several conveyances and payments above referred to shall be made on or before the first day of September next. The parties hereto further mutually bind themselves, respectively, in the penal sum of $1000, as liquidated damages, which they, respectively, agree to pay, each to the other, together with all other damages that may be sustained by either upon the failure of the other to comply with each and every one of the covenants herein contained.
“Witness our hands and seals the day and year first above written. H. E. Gedney,
E. D. Lyman. ”

Lyman refused to perform his part of this agreement. A mistake occurred in the description of the property to be conveyed by Gedney. The decree below corrects that mistake, and then requires this contract to be specifically j)erformed.

First—Counsel for appellant argue that the clause in the instrument written in pencil, whereby each party binds himself to the other in the sum of $1000, liquidated damages, limits the rights of the parties, upon a breach of the contract, in equity as well as at law, and that the only remedy is through an action at law for that sum; and they contend that the evidence shows that McDougal fraudulently added to that clause, as it is written in the last instrument, the words, “together with all other damages that may be sustained by either, upon the failure of the other to comply with each and every one of the covenants herein contained,” and that he falsely represented to appellant that the legal effect of the clause was not changed by the addition of these words, and thereby induced appellant to sign the last instrument. The mere fact that a contract stipulates for the payment of liquidated damages in case of failure to perform, does not prevent a court of equity from decreeing specific performance. (Fry on Specific Performance, sec. 67, ei seq; Waterman on Specific Performance, sec. 22; Pomeroy on Contracts, sec. 50.) It is only where the contract stipulates for one of two things in the alternative,—the performance of certain acts, or the payment of a certain amount of money in lieu thereof,—that equity will not decree a specific performance of the first alternative. Pomeroy on Contracts, ubi supra; Waterman on Specific Performance, secs. 22, 23 ; Dooley v. Watson, 1 Gray, 414.

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Cite This Page — Counsel Stack

Bluebook (online)
29 N.E. 282, 114 Ill. 388, Counsel Stack Legal Research, https://law.counselstack.com/opinion/lyman-v-gedney-ill-1885.