McKinley v. Macbeth

129 N.W. 216, 113 Minn. 148, 1911 Minn. LEXIS 719
CourtSupreme Court of Minnesota
DecidedJanuary 6, 1911
DocketNos. 16,626—(16)
StatusPublished
Cited by1 cases

This text of 129 N.W. 216 (McKinley v. Macbeth) is published on Counsel Stack Legal Research, covering Supreme Court of Minnesota primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
McKinley v. Macbeth, 129 N.W. 216, 113 Minn. 148, 1911 Minn. LEXIS 719 (Mich. 1911).

Opinion

Brown, J.

Action to recover damages for the alleged breach of a contract for the exchange of certain lands and real property. Defendant had a verdict, and plaintiffs appealed from an order denying a new trial.

The facts are as follows: Plaintiffs, George A. and Alice L. McKinley, had, prior to the transaction here involved, entered into an executory contract for the purchase by them of certain lands, a part of which were in the state of North Dakota,’ and a part in this [150]*150state. The land was incumbered to the extent of $8,600. On or about November 16, 1905, their said contract being then in force, and a valid and binding obligation upon their part and upon the part of the vendor therein, the McKinleys entered into a contract with defendant by the terms of which plaintiffs agreed to assign the contract to defendant in consideration of defendant’s agreement to deed and convey to plaintiffs certain improved real property owned by him in the city of Mankato, this state. The contract was in writing, and provided that the assignment of plaintiffs’ contract should be subject to incumbrances against the land aggregating $8,600, and that the conveyance of defendant’s property should be subject to incumbrances to the amount of $7,000. Defendant thereafter made certain objections to the contract, based upon what he considered misrepresentations concerning the Dakota land. It is not necessary to refer to this matter in detail. The misunderstandings were adjusted, and plaintiffs formally assigned their purchase contract to defendant, and he accepted and received the same.

It is the.contention of plaintiffs, and herein is the foundation of their action, that defendant never at any time conveyed his Mankato property to plaintiffs, and has at all times failed and neglected to do so. Therefore they demand damages for his breach of the contract. Defendant denied any breach of the contract on his part.

The facts bearing upon the question whether defendant failed to perform are as follows: At the time of the transaction defendant was indebted to the First National Bank of Mankato in the sum of about $7,000, a part of which was secured by mortgage upon the property defendant proposed to exchange with plaintiff. As we understand the situation, it was proposed to, consolidate all prior mortgages in a new one to be executed by defendant to the bank for the total indebtedness of $7,000. The officers of the bank were informed of the contract of exchange, but refused to rearrange its mortgages, unless some responsible person would assume and agree to pay the mortgage debt.

Defendant presented the matter, together with his other objections to the original contract, to plaintiffs, and to facilitate a completion of the transaction if was then orally agreed, so defendant [151]*151claims, that the original contract of exchange should be modified i in certain respects not here material, and also to the effect and as requiring defendant to convey his property to one Samson, instead of the plaintiffs. • Defendant also claims that it was further then mutually agreed between plaintiffs and defendant that plaintiffs should procure from Samson an agreement on his part to assume and agree to pay the indebtedness upon the property so to be conveyed by defendant, and, further, that it was then agreed that the deed from defendant should so provide, and be executed and delivered to the bank, to be .by it delivered to Samson.

There is no question but that the plaintiffs requested that the deed be made to Samson; the purpose being to consummate another real estate bargain then existing between those parties. Samson, however, had no contractual connection with the case at bar. Defendant contends that, pursuant to this modified contract, plaintiffs assigned their purchase contract to defendant, and defendant in turn executed in due form a conveyance of his Mankato property to Samson, and delivered the same to the bank, as required by the terms of the new agreement. The deed contained a clause by which Samson assumed and agreed to pay the incumbrance of $7,000. Samson refused to accept the deed, because of this assumption clause, and also because of some objectionable details in respect to partial payments upon the debt. The transaction was finally completed in this manner about December 6, 1905.

The substantial controversy in the court below ranged about the question whether by the modified agreement plaintiffs undertook and agreed to procure Samson to assume the indebtedness against defendant’s property. The trial court charged the jury that if such was' the agreement between the parties, and defendant’s deed to Samson was executed and delivered to the bank in conformity therewith, defendant was not in default, had not failed or refused to comply with the contract, and plaintiffs could not recover. There was no error in this disposition of the case.

Plaintiffs’ motion for a new trial was based upon the usual grounds of errors in law, and that the verdict is not justified by the evidence, and also newly-discovered evidence. These grounds are specified [152]*152in the assignments of error in this court, and we will consider them in the order discussed in the briefs.

1. During the cross-examination of plaintiff George A. McKinley, counsel for defendant drew out, over the objection of plaintiffs, the fact that at the time of the transaction in question plaintiffs were in default in one of the payments under the purchase contract; that is, that they were behind in one payment. In its charge the court referred to this in reciting the case to the jury,' and stated “that for the purpose of saving this land and saving something from them, he sought to make a trade or deal, and that he applied to the defendant in this case for the purpose of making a deal with him.” We discover in this no error of a nature to justify a reversal. Of course, it was wholly immaterial whether plaintiffs were behind in their payments. But it was undoubtedly true that they sought by the exchange with defendant to make a profit, the natural and reasonable purpose of all real estate dealers. Clearly no prejudice resulted from this evidence, nor from the remarks of the court. The issues were thereby neither clouded nor the jury misled. Farnham v. Thompson, 32 Minn. 22, 18 N. W. 833.

2. The exchange contract called for a deed from defendant free and clear of all incumbrances, save a mortgage for $7,000. On cross-examination of defendant, counsel asked the question: “Now, at the time this contract was entered into between you and Mr. McKinley, there' was a judgment outstanding and docketed against you in this county in favor of the Standard Lumber Company, wasn’t there ?” An objection to the question was sustained, as incompetent, irrelevant, and immaterial. There, was no error in the ruling. The judgment record was the best evidence. There was no effort to produce it, and the question ruled out was not followed by an offer to show the existence of such a judgment. And, moreover, the refusal of Samson to accept the deed from defendant was based upon the assumption clause therein, and not for defects in the title, or because of liens upon the land other than those represented by- the $7,000 mortgage.

3. The evidence offered by both parties in reference to the value, of the North Dakota lands took, a wide range, both upon direct [153]*153and cross-examination of the witnesses. Perhaps some testimony not strictly admissible was received over the objection and exception of plaintiffs; but it was not of a character to justify a reversal.

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Bluebook (online)
129 N.W. 216, 113 Minn. 148, 1911 Minn. LEXIS 719, Counsel Stack Legal Research, https://law.counselstack.com/opinion/mckinley-v-macbeth-minn-1911.