Malone v. Meres

109 So. 677, 91 Fla. 709
Supreme Court of Florida·Decided April 30, 1926·Published·Cited by 137 cases

Opinions

On petition for rehearing.

Opinion Filed July 17, 1926.

1. Before the enactment of Chapter 7839, Laws of Florida, 1919, requiring a deficiency, decree to be entered when the proceeds of the sale of property subject to the lien being enforced should not be sufficient to pay tbe debt and costs, the power of the court to enter such decrees in foreclosure of mortgages was exercised under Rule 89 of Circuit Courts in Equity Actions. They were not entered in causes to foreclose vendor’s liens.

2. A lien does not exist in favor of the seller of personal property for its purchase price after delivery.

3. When a written agreement is made between the seller of personal property and the purchaser to whom delivery is made of the thing sold and the. purpose and intent of the parties as shown by the document, was to execute an instrument to secure the payment of a debt it will be deemed to he a mortgage and subject to the same restraints and forms as are prescribed in relation to mortgages.

4. A written executory contract of sale, where delivery of the possession of the chattel agreed to be sold is made to the purchaser, and under the provisions of such contract the seller has the option to forfeit and terminate the- contract and retain all payments made and retake the thing agreed to be sold upon the happening of certain conditions, secures to the seller the alternative to enforce the payment of the balance of the purchase price of the thing agreed to he sold.

5. The exercise of the alternative by the seller is a renunciation of the option but not a cancellation of the contract which leaves the title ,to the thing agreed to be sold in *715 the seller; for absolute title in. the seller to a thing is inconsistent with an action to recover the debt due for its purchase.

6. The purchaser under such a contract, by paying part of the purchase price of the article and taking it into his possession, acquires an equitable interest in the thing agreed, to be sold which may be the subject of an agreement between the parties subjecting it to a lien for the unpaid purchase price.

7. Under a contract of sale where the chattel sold is delivered to the purchaser but the seller retains the title to it with an option to retake it upon the happening of certain conditions and forfeit all payments made upon the purchase price of it the seller may exercise the alternative of proceeding against the purchaser for the collection of the unpaid balance of the purchase price and treat the contract as a lien upon the thing sold to secure such payment, because under such a contract the purchaser consents to the encumbrance upon his equitable interest in the chattel.

8. In the absence of any statutory provision declaring an instrument given to secure the payment of money to be a mortgage, a sale of personal property on the installment plan continuing title to the thing sold in the vender until all payments are made with a condition that upon the vendee’s failure to make all payments the' vendor shall have the right to a surrender of the property and forfeit all payments upon the purchase price of it he may elect to consider the property as security for the payment of the balance due.

9. Equity abhors a forfeiture and a court of equity, under some circumstances, has the power to declare “retain-title-contracts” to be a mere security and protect the purchaser from unconscionable forfeiture.

*716 Petition for rehearing denied.

W. W. Flournoy, for Appellant;

McKay & Withers, for Appellee.

Whitfield, P. J.

— Suit was brought to enforce a lien predicated upon the following written instrument, it being alleged that complainant ‘ ‘ does hereby elect to claim a lien upon property.”

"ARTICLES OF AGREEMENT, Made this 15th day of October, in the year of our Lord one thousand nine hundred and nineteen BETWEEN the Sponge Exchange Bank, a corporation organized and existing under the laws of the State of Florida, at Tarpon Springs, Pinellas County, Florida, party of the first part, and F. E. Malone, of New York, party of the second part, WITNESSETH, That if the said party of the second part shall first make the payments and perform the convenants herein mentioned on his part to be made and performed, the said party of the first part hereby convenant and agree to convey and assume to the party of the second part, his heirs, executors, administrators or assigns in fee simple, clear of all incumbrances whatever, by a good and sufficient bill of sale, all of the furniture, fixtures and equipment belonging to the Tarpon Inn and now in the Tarpon Inn in Tarpon Springs, Florida, and the said party of the second part hereby convenants and agrees to pay to the said party of the first part the sum of Fifteen Thousand Dollars, in the manner following:

"One Thousand Dollars cash, the receipt of which is hereby acknowledged, and Three Thousand Dollars on or before March 15th, 1921, Three Thousand Dollars on or before March 15th, 1922, Three Thousand Dollars on or be-for March 15th, 1923, Three Thousand Dollars on or be *717 fore March 15th, 1924, and Two Thousand Dollars on or before March 15th, 1925, with interest at the rate of six per centum, per annum payable annually on the whole sum remaining from time to time unpaid; and to pay all taxes, assessments or impositions that may be legally levied or imposed upon said property subsequent to the year 1918, and to keep the property insured in some company satisfactory to the party of the first part in a sum not less than $14000.00 during the term of this agreement. And in case of failure of the party of the second part to make either of the payments or any part thereof, or to perform any of the covenants on his part hereby made and entered into, this contract shall, at the option o'f the party of the first part, be forfeited and terminated, and the party of the second part shall forfeit all payments made by him on this contract; and such payments shall be retained by the said party of the first part in full satisfaction and liquidation of all damages by it sustained, and said party of the first part shall have the right to re-enter and take possession of the property aforesaid without being liable to any action therefor.

‘ ‘ The payments above set forth shall be covered by promissory notes of even date herewith, and for the time specified in the agreement above, and said notes to be payable at the Sponge Exchange Bank. The party of the second part however reserves the right to pay any or all of these notes at any time by paying the interest thereon at date of payment.

It is Mutually agreed, by and between the parties hereto, that the time of payment shall be an essential part of this, contract, and that all convenants and, agreements herein contained shall extend to and be obligatory upon the heirs, *718 executors, administrators and assigns of the respective parties. ■

“In Witness Whereof, the parties to these presents have hereunto set their hands and seals the day and year first above written.”

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Malone v. Meres, 109 So. 677, 91 Fla. 709 (Fla. 1926).

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