McKENNA v. Turpin

151 N.E.2d 303, 128 Ind. App. 636, 1958 Ind. App. LEXIS 137
CourtIndiana Court of Appeals
DecidedJune 25, 1958
Docket19,006
StatusPublished
Cited by14 cases

This text of 151 N.E.2d 303 (McKENNA v. Turpin) is published on Counsel Stack Legal Research, covering Indiana Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
McKENNA v. Turpin, 151 N.E.2d 303, 128 Ind. App. 636, 1958 Ind. App. LEXIS 137 (Ind. Ct. App. 1958).

Opinion

Crumpacker, J.

It is undisputed that on August 10, 1953, the appellants, as parties of the first part, and the appellee, as party of the second part, entered into a written contract which, omitting signatures, is in the following words and figures:

*639 “For services rendered the party of the first part gives to the party of the second part the exclusive right to sell the following described real estate and improvements thereon, for a period of nine months from date thereof.
“Lots numbered 53; 54; 55; 56; 57; 62; 63; 64; 65; 66; 67; 68; 69; 70; 71; 72; 73; 74; 77; 78; 79; 80; 81; 82, in Shadeland Terrace, an addition in Lawrence, Marion County, Indiana, as per plat thereof recorded in Plat Book 21, pages 101 and 102 in the office of the Recorder of Marion County, Indiana.
“The party of the first part, his heirs or assignee to pay to John C. Turpin, his heirs or assignee, a sum equal to 5% of the selling price of any of the above described properties as the same are sold and transactions consummated.
“WHEREAS, Richard F. McKenna and Ruth McKenna, husband and wife have entered into a certain option agreement with John C. Turpin in respect of the sale of certain lots in Shadeland Terrace, an Addition to the Town of Lawrence, which agreement is dated this 10th day of August, 1953; and
“WHEREAS, John C. Turpin has agreed to procure for said McKennas, construction loan monies for the purpose of financing the erection of dwelling houses and buildings on said lots and permanent mortgages thereafter to the purchaser of said improved lots on terms to be mutually agreed upon between the parties to said agree ments and to this agreement.
“NOW THEREFORE, if said John C. Turpin procures construction monies on terms to be mutually agreed between said parties and further procures for said McKennas permanent mortgages on the sale of said lots as improved, then the said option agreement shall remain in full force and effect; otherwise, said option agreement shall be void.”

On January 19, 1954, when the above contract still had approximately four months to run, the appellants notified the appellee in writing that they were rescinding said contract, would no longer recognize it as *640 binding and that all his rights thereunder were terminated. The appellee thereupon brought this suit by a complaint in four paragraphs. The first alleges that the appellants are selling dwelling houses erected on the lots described in said contract without paying him for his services. That it was the intention of the parties at the time said contract was made that the lots described therein were to be subject to a lien in favor of the appellee as security for the payment of his commissions which total $14,100.00. He therefore asks judgment in the sum of $14,100.00 and the foreclosure of his said lien. The second paragraph of said complaint alleges full performance on the part of the ap-pellee of all covenants in the contract on his part to be performed and a refusal by the appellant to pay him the agreed 5% of the sale price of the 13 dwelling houses sold. The third paragraph seeks the recovery of the 5% commissions on the sale price of 13 lots and dwelling houses described in the contract which he alleges he would have sold if he had not been prevented from doing so by the appellants. The fourth paragraph of complaint merely alleges the contract and its breach and asked damages in the sum of $16,450.00. The first paragraph of the complaint, which seeks the foreclosure of a lien, was amended twice, the last pleading in respect thereto being designated “third amended first paragraph of complaint.” The record, as of March 21, 1955, shows the following entry: “Comes now the plaintiff, John C. Turpin, by counsel, and dismisses his third amended first paragraph of complaint only.” Upon trial of the case the court found for the appellee, that the appellants had breached the contract involved by refusing to permit the appellee to continue to perform his part thereof although he was ready and willing to do so and assessed his damages at $4,993.75. The court, evidently believing that the dis *641 •missal of the third amended first paragraph of complaint revived and reinstated the first paragraph of second amended complaint, decreed that the appellee should have an “equitable lien” in that amount against 13 lots therein described and ordered said lots sold to pay said lien.

An amended pleading takes the place of the original which goes out of the case for all purposes. Jackson Hill Coal, etc. Co. v. Bales (1915), 183 Ind. 276, 108 N. E. 962; Indianapolis Traction, etc. Co. v. Formes (1907), 40 Ind. App. 202, 80 N. E. 872. It is obvious at once that the first paragraph of the second amended complaint, upon which the court based its decision setting up and foreclosing an “equitable lien” on the property involved, was out of the case when said decree was entered and therefore so much thereof as pertains to a lien is wholly outside the issues. A decree in equity, like a judgment at law, cannot stand when it has no pleading to support it. 30 C. J. S., Equity, §604. Where the pleading which sets up the subject matter has been stricken from the record, it is error to pronounce a decree thereon affecting the parties’ rights. Palmer v. Newman (1922), 91 W. Va. 13, 112 S. E. 194. In the case before us the matter of an equitable lien was set up by the first paragraph of the second amended complaint. This was taken out of the case by the third amended first paragraph of the complaint which in turn went out upon dismissal and it was therefore error to predicate a decree thereon. Nor does the evidence indicate that equity requires that a lien ■on the property involved be established and foreclosed. The contract in suit makes no provision for a lien and certainly such a provision cannot be read into a written contract upon oral testimony. We have found no authority for the proposition that a broker is entitled to *642 an equitable lien on property where there has been nothing more than a breach of the agreement to pay him a commission for its sale. See Gosslin v. Martin (1910), 56 Ore. 281, 107 P. 957.

It seems to us that the contract in suit is a simple one. The appellants owned certain lots in Shadeland Terrace, Lawrence, Indiana. They needed money to finance the construction of houses thereon. They agreed with the appellee that if he procured for them “construction monies on terms to be mutually agreed upon between the parties and further procure for said McKennas permanent mortgages on the sale of said lots as improved,” then and in that event the appellee was to have the exclusive right, for a period of nine months, to sell said improved lots for a commission of 5% of the sale price payable at the consummation of each transaction. If he failed to procure such money and arrange for said permanent mortgages then he was to have no right to sell the property involved.

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Bluebook (online)
151 N.E.2d 303, 128 Ind. App. 636, 1958 Ind. App. LEXIS 137, Counsel Stack Legal Research, https://law.counselstack.com/opinion/mckenna-v-turpin-indctapp-1958.