Maxted v. Stenberg

534 P.2d 864, 166 Mont. 460, 1975 Mont. LEXIS 654
Montana Supreme Court·Decided April 25, 1975·No. No. 12808·Published·Cited by 1 cases

Opinion

MR. JUSTICE DALY

delivered the Opinion of the Court.

This is an appeal from a judgment entered in the district court, Sweet Grass County, denying plaintiff specific performance for an alleged breach of contract because of defendants’ failure to sell their ranch to plaintiff after execution of a buy-sell agreement.

On September 23, 1970, defendants Stanley and Ann Stenberg, hereinafter referred to as sellers, listed their ranch consisting of approximately 315 acres located west of Big Timber, Montana, for sale with real estate broker Harold Mjolsness, hereinafter referred to as realtor, for the price of $70,000. The listing expired March 1, 1971. With the consent of sellers, the realtor continued to show the property to interested parties but was unable to find a buyer.

[462]*462In the summer of 1972, plaintiff Roy Maxted, a resident of the state of California, hereinafter referred to as purchaser, decided to settle in Montana and purchase a rench. He inquired of the realtor and was advised that sellers’ ranch was on the market. After negotiations, a buy-sell agreement was executed on July 7, 1972, by purchaser and realtor, and by sellers on August 3, 1972. The agreement provided in part :

1) The purchaser pay a $1,000 deposit as earnest money and as part payment of the purchase price of $75,000. The balance in the amount of $74,000 to be paid $1,000 on or before August 7, 1972, and additional payments each month until purchaser had paid a total of $15,000, on or before January 1, 1973. Purchaser thereafter to make annual payments of $6,000 which will include interest at the current rate charged by the federal land bank for the duration of the contract a period of fifteen years, and, at that time the unpaid balance will be due and payable in one sum.

2) A legal description of the land purchased, including all recorded water rights; sellers to retain one-half of the existing mineral rights and purchaser the remaining one-half, until final payment. Upon final payment sellers agreed to release all mineral rights to purchaser.

3) All irrigation fixtures, heating fixtures and equipment, including water heaters, etc., were to be left as part of the property purchased.

4) Sellers at their expense shall furnish an abstract of title or at their option title insurance showing merchantable title vested in sellers, free and clear of all liens and encumbrances, with no exceptions.

5) The real property was to be conveyed by warranty deed and personal property by bill of sale, free and clear of all encumbrances, except zoning reservations in the federal patent.

6) Sellers shall pay all taxes for 1972 and prior years. Purchaser shall pay all taxes and assessments thereafter. Encum[463]*463brances may be paid out of purchase price by sellers at the date of closing.

7) Time is of the essence and purchase rights are not assignable without written consent of sellers.

8) Sellers agreed to remove all old machinery before possession date.

9) Sellers agree to transfer present private leases [including the description] to purchaser at the time of closing sale.

10) Harold Mjolsness is agent for sellers and sellers agree to convey to purchaser the property described and on the terms contained in the agreement. Sellers agree to pay their agent $2,500 for services rendered in the transaction, and further provided:

«# * * I/we authorize said agent to pay out of the cash proceeds of sale the expense of furnishing evidence of title, of recording fees and revenue stamps, if any, as well as any encumbrances on said premises payable by me at/or before closing. # * *”

There was no provision in this buy-sell agreement to enter into any other contract agreement at any future time. The agreement, in fact, recites as it relates to purchaser and oral promises, that the purchaser enters into this agreement in full reliance upon his independent investigation and judgment. There are no verbal or other agreements which modify or affect the buy-sell agreement.

Following the execution of the buy-sell agreement purchaser sold his home and liquidated his construction business in California.

The realtor did not use his regular attorney but hired Mr. Richard Heard of Columbus, Montana, to prepare a contract for deed, because realtor’s regular attorney was not satisfactory to sellers.

In November 1972, purchaser returned to Montana and met with sellers and realtor in Mr. Heard’s law office to discuss terms and refinements to be included in a formal contract for [464]*464deed to be prepared by Heard. At this meeting purchaser offered to pay the remaining balance on the buy-sell agreement, but was requested by sellers to withhold payment until after January 1, 1973, because of sellers’ tax problems for 1972. In court, sellers did not directly admit making this request, but neither did they deny it completely. They allowed as to the tax problem, but maintained the money could have been placed in escrow. In any event, the parties agreed the new date for payment of the $14,000 to be January 5, 1973.

At this point the parties were left alone by the attorney to discuss and agree on the terms of the proposed contract. After an hour he returned to the conference room and discussed the oral agreement. Thereafter, he prepared a contract for deed, submitted to the purchaser in California where it was signed by him on December 11, 1972.

In order to construct a home on the ranch, purchaser needed five acres released to him to satisfy the financial arrangements for the home. Sellers refused to sign the contract for deed because the provision granting the five acres to purchaser on closing was unacceptable to them. Purchaser was so informed by telephone on December 9, 1972. An amendment to the contract was prepared, but sellers continued to object to any release of five acres prior to payment of a more substantial sum than the $15,000 down payment.

At this point there were several telephone calls between realtor and purchaser concerning the $14,000 due on January 5, 1973, under the buy-sell agreement. Purchaser testified he had nothing in hand and no title report, etc., and therefore he chose to come to Montana and close the matter personally, but did not arrive in time to make the payment on January 5, 1973.

On January 8, 1973, sellers requested realtor to notify purchaser “to get some money up here so that I know they were going to go through with this”. Purchaser, driving a truckload of furniture, arrived in Montana on January 19, 1973. [465]*465He tendered a cashier’s check for $14,000 to sellers’ agent, who accepted the check although sellers apparently considered “the deal was off.”

Purchaser and realtor testified that on January 19, 1973, the parties were to meet in realtor’s office but sellers excused their absence due to cattle being out, etc. Purchaser and realtor finally went to the ranch late in the afternoon of the same day and sellers explained they had to see about financing in Bozeman and could not close the deal at that time. Sellers maintain they told purchaser and realtor the “deal was off”, yet, sellers came to another meeting the evening of the 19th at realtor’s office. Another conference was had then between the parties, but no positive results came of the meeting.

Free access — add to your briefcase to read the full text and ask questions with AI

Maxted v. Stenberg, 534 P.2d 864, 166 Mont. 460, 1975 Mont. LEXIS 654 (Mo. 1975).

534 P.2d 864 (Maxted v. Stenberg) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

Related

Melby v. Doering
Montana Supreme Court, 2026
McDonald v. Cosman
2000 MT 126 (Montana Supreme Court, 2000)