McCrory v. Brinckmann

388 S.W.2d 883, 1965 Mo. LEXIS 833
CourtSupreme Court of Missouri
DecidedApril 12, 1965
DocketNo. 50889
StatusPublished
Cited by1 cases

This text of 388 S.W.2d 883 (McCrory v. Brinckmann) is published on Counsel Stack Legal Research, covering Supreme Court of Missouri primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
McCrory v. Brinckmann, 388 S.W.2d 883, 1965 Mo. LEXIS 833 (Mo. 1965).

Opinion

BARRETT, Commissioner.

In 1956 the appellants Charles A. and Charles Donald Brinckmann (father and son), as owner-lessors, and the respondents Glenn and Frieda McCrory entered into a “Lease With Agreement To Sell” a residence property in Camden County. The lease was for ten years from September 1, 1956, and provided for a rental of $125 a month. Within the ten-year period the agreement gave the lessees “the option of purchasing said premises” for $32,600 and provided in the event the lessees exercised the option that the rent payments were to be applied on the purchase price. In that same paragraph there was a provision that the lessees might execute a note and deed of trust in payment of any balance due on the purchase price upon their election to exercise the option. There were several provisions relating to insurance on the property and the total destruction of the residence “by any casualty of any nature.” As to insurance it was provided in a separate paragraph that the lessors, the Brinck-[884]*884manns, “may maintain such insurance as they so elect at their own expense to insure any loss of equity which they have in said premises at the time of the loss.” And likewise it was provided in the same sentence that the lessees, the McCrorys, “may insure their respective interest and their equity in said premises accordingly.” And it was specifically agreed that each party should “pay for their own insurance.” Another paragraph provided, in the event of total destruction of the insured property, that “the insurance which is in force by each party, respectively, shall compensate and adjust to each of the parties their respective interest at the time of the casualty” and, in the same sentence, it was agreed that the lessees, the McCrorys, “may elect to take under the option and acquire title to the property in fee simple” and in the event the property is totally destroyed the lessors agree to “claim any balance which is then due to them” during the period of the lease and “they will carry sufficient and adequate insurance to protect the unpaid balance.”

Pursuant to this agreement the McCrorys moved into the property and over the years made the monthly payments of $125 and as their potential equity increased they increased the amount of their insurance. And at the same time as the years passed the lessors decreased the amount of their insurance on the property. On December 7, 1962, after the lessees had made monthly payments totalling $9500 the property was destroyed by fire. On that date the Mc-Crorys carried $12,500 insurance on the residence and the Brinckmanns carried $20,000 insurance. The value of the lot without the residence was $3500 and the McCrorys valued their equity in the property before the fire at $17,500. On January 22, 1963, the McCrorys notified the Brinck-manns of their election to exercise the option to purchase the property and demanded that they cause the warranty deed to be delivered from escrow and otherwise comply with the terms of the agreement, and particularly with the provisions relating to insurance. Upon the lessors’ refusal to recognize the option the McCrorys instituted this action in specific performance.

At the conclusion of the trial and upon the appellants’ request the court made specific findings of fact and conclusions of law. Insofar as material to this appeal the court concluded that the agreement was so clear and unambiguous that there was nothing for the court to construe and consequently the court found that the lease gave the respondents an absolute option to purchase the property. In this connection the court found that upon exercise of the option the agreement provided for two methods of paying the balance of the purchase price, one, by executing a note and deed of trust and, second, in the event the property was totally destroyed by fire “payment of the balance due would be acknowledged by the defendants from the proceeds of their insurance policy.” And finally, in its judgment the court decreed that the deed conveying fee simple title be delivered to the Mc-Crorys. The Brinckmanns appealed and since the case involves the title to real estate (Const.Mo. Art. V, § 3, V.A.M.S.) the Springfield Court of Appeals transferred the cause to this court. McCrory v. Brinckmann, Mo.App., 379 S.W.2d 882.

The only question for determination is whether the option provided in the “Lease With Agreement To Sell” is conditional or absolute. While one of the parties cites Skelly Oil Company v. Ashmore, Mo., 365 S.W.2d 582, it should be noted that this appeal is not directly concerned with the proceeds of the insurance policies. It may be said in passing, however, that the implication of that case is that any loss by reason of the destruction of the property would fall on the vendor-owners. The Skelly Oil Company case has been commented on in 28 Mo.L.R. 641; 8 St.L.L.J. 266; 112 Pa.L.R. 305; and 39 No.D.L.R. 351. While this court-tried equity case is reviewable anew in this court (Sup.Ct.Rule 73.01, V.A.M.R.), other issues in the trial court and not necessary to be considered in the dis[885]*885position of this appeal are deemed to have been waived. Brackett v. Easton Boot & Shoe Co., Mo., 388 S.W.2d 842. As stated, the question presented here is whether the option is conditional as the appellants contend or absolute as the respondents contend and as the court decreed. The appellants state the problem and their contention in this language in the only point briefed and argued: “The Court improperly found, as set out in its Conclusions of Law, that the plaintiffs had a right to exercise their option to acquire fee simple title; that in fact, the plaintiffs did not have an absolute right but had a conditional or preferential and not an absolute option to purchase.” The appellants argument is that when two sections of the agreement are considered it is obvious that the option is conditional and dependent on the lessor-owners’ desire to sell. These two sections of the agreement are paragraph 6 relating to the insurance each party is to carry, as above noted, and paragraph 8 relating to a casualty rendering the property unfit for occupancy and providing that the lessees “may elect to terminate the lease agreement” and specifically providing that “this section shall be construed to be optional on the parties of the second part (lessees) only”.

But in this case and upon this record it is not deemed necessary to consider in detail the extrinsic circumstances (De Witt v. Stotts, Mo., 265 S.W.2d 398), as the court indicated, the terms of the agreement are clear and unambiguous and even though it provides alternatives there is no conflict in the provisions. Construing the agreement as a whole and the option clause, lessees “shall have the option of purchasing said premises,” in its context (Stein v. Reising, 359 Mo. 804, 224 S.W.2d 80) there can be no doubt that an absolute and unconditional option was granted. Neither is it necessary to examine into the rationale of the cases or in the circumstances of this case to carefully examine the contract document and indicate the corroborating and compelling characteristics of the various provisions. For general information there are these relevant annotations and they have been noted in all the cases cited throughout this opinion: 127 A.L.R.

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

Related

Powell v. Kennedy
463 S.W.2d 802 (Supreme Court of Missouri, 1971)

Cite This Page — Counsel Stack

Bluebook (online)
388 S.W.2d 883, 1965 Mo. LEXIS 833, Counsel Stack Legal Research, https://law.counselstack.com/opinion/mccrory-v-brinckmann-mo-1965.