McCrillis v. American Heel Co.

155 A. 410, 85 N.H. 165, 1931 N.H. LEXIS 94
CourtSupreme Court of New Hampshire
DecidedJune 2, 1931
StatusPublished
Cited by6 cases

This text of 155 A. 410 (McCrillis v. American Heel Co.) is published on Counsel Stack Legal Research, covering Supreme Court of New Hampshire primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
McCrillis v. American Heel Co., 155 A. 410, 85 N.H. 165, 1931 N.H. LEXIS 94 (N.H. 1931).

Opinion

Allen, J.

If by the contract more than a year was required to perform it, the statute of frauds is a defence. A contract calling for a year of employment not to commence until a time subsequent to the date of the contract must be in writing, and there was evidence tending to show a contract with such a term. And performance in part or in full does not make an unenforceable contract enforceable. Emery v. Smith, 46 N. H. 151; Webster v. Blodgett, 59 N. H. 120; Smith v. Phillips, 69 N. H. 470.

The position that the parties made subsequent oral contracts while the year of service was under way is not well taken. The most that the evidence tends to show is that the defendant agreed to have the original contract put in written form. No new contract was contemplated. At best an oral contract was orally acknowledged during its performance. It remained within the statute.

It is also argued that the principle that equity will grant relief from fraud resulting from the enforcement of the statute, may be invoked. In support of the argument it is said that the plaintiff “radically changed his position, surrendered a means of earning his living and moved to another city.” If it may be assumed that the situation given up was of profit and advantage, yet to entitle one to equitable *167 relief lie must show undue benefit to the other party as well as detriment to himself. The defendant must have something which it is not right in equity for him to retain. In White v. Poole, 74 N. H. 71, it was not alone the donee’s change of plans at the owner’s request that sufficed to give her relief, but in addition the benefit that the owner received therefrom. As the benefit could not be restored, the donee of the property was equitably entitled to it.

Furthermore, when relief is granted to prevent fraud or hardship, it is not in awarding damages for broach of the contract. It is either of specific performance, of damages for the equivalent' of performance when performance is impossible, or of restoration of the benefit the defendant has received. The principle of relief is not of estoppel against pleading the statute. Equity must recognize the statute equally with common law. To assert a statutory right cannot be made wx-ongful by equity, any more than by the common law. Rights arise out of a situation of which the contract is a part; and in reality it is not the contract of which performance is enforced, but an obligation established as the result of the contract and action under it of, which the defendant has received the benefit. It is because of the hardship or fraud brought about because the statute makes the contract unenforceable that the equitable right arises. The statute is not disregarded, but equity relieves against its unintended consequences when they amount to a wrong under equitable principles.

In cases of real property the purchaser’s relief is only to obtain what equitably belongs to him. He may not instead elect to be awarded damages for breach of the oral contract. He may recover the price paid because it is a wrong for the defendant to retain it without conveying the property. But he may not recover by way of damages for the loss of his bargain. When the obligation to convey does not arise on account of extraneous matters, such as the seller’s lack of title, or, as usually stated, when specific performance is impossible, damages may be awarded giving the equivalent in value of what performance, if it could be had, would give. This is the value of the equitable right which the plaintiff should have had, and not damages for the nonperformance of an unmaintainable contract.

If relief from the consequences of the statute extends to cases other than of real property, it is not given in a case of services to be performed. Specific performance of contracts of service is not ordinarily decreed. Williston, Cont., (1st ed.), s. 1423; Pomeroy, Eq. Jur., (4th ed.), s. 1402 n. For rendering the service, in part or in full, recovery may be had for its value. And payment in advance for serv *168 ices not rendered may be recovered. But for refusal to accept service there is no more liability than for refusal to render it. No hardship not intended to be imposed by the statute therefrom results. Beyond the service actually rendered, for which there is a quasi-contractual liability, the defendant receives no benefit.

The case presents the procedural question whether the defendant adequately protected its rights to rely on the statute as a defence. It sought to raise the issue by moving at the close of the evidence to plead the statute, and it excepted to the denial of the motion. It is claimed, first, that the exception is inherently without merit, and second, that the defendant lost the benefit of it.

In an action based on a contract required by the statute to be in writing, the authorities appear to be in conflict upon the point whether the defence of the statute may be made under the general issue or whether it must be specially pleaded. 27 C. J. 369, 370; 49 L. R. A. (n. s.) 11-28. But a special plea cannot be necessary when the contract as declared on is not within the statute. Sueh a plea would be demurrable because the oral character of the contract would not affect its validity. This is the situation here. Both the original and amended declarations are definite in alleging a contract outside the statute. The defendant could not be barred from the defence of the statute merely because it failed to file an improper plea at the outset of the trial.

The contract entered into was oral. During the trial the evidence introduced was such as to produce the issue of the statute as a defence. From the evidence the contract might be found to contain the terms declared on, and hence make the action maintainable, or it might be found to have other terms so as to require it to be in writing, and hence defeat the action. Clearly, at the close of the evidence the defendant was entitled to a verdict if the contract was found to be within the statute.

It endeavored to protect its rights in this respect. If the motion to plead the statute was an unnecessary step in obtaining the protection, yet it was not so regarded by the court and parties. It was taken under advisement. Until it was passed upon, the defendant 'was barred from further action with reference to the statute. A preliminary question was understood to be presented by the objection to the motion, as to whether the statute should have been specially pleaded at the outset of the trial. Until the court made its ruling, the defendant might only wait. It made ineffectual effort to obtain a determination of the issue by its request for special questions to be submitted *169 to the jury. They were submitted, but on the ruling that the answers would be merely for the court’s consideration, because the statute “so far” was not in the case.

This ruling, implying that the issue of the statute would not be submitted to the jury, necessarily meant that if the motion should be granted, either the court would pass upon the issue or the jury’s verdict, if for the plaintiff, be set aside.

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Cite This Page — Counsel Stack

Bluebook (online)
155 A. 410, 85 N.H. 165, 1931 N.H. LEXIS 94, Counsel Stack Legal Research, https://law.counselstack.com/opinion/mccrillis-v-american-heel-co-nh-1931.