Mecham v. Nelson

451 P.2d 529, 92 Idaho 783, 1969 Ida. LEXIS 229
CourtIdaho Supreme Court
DecidedFebruary 28, 1969
Docket10189
StatusPublished
Cited by22 cases

This text of 451 P.2d 529 (Mecham v. Nelson) is published on Counsel Stack Legal Research, covering Idaho Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Mecham v. Nelson, 451 P.2d 529, 92 Idaho 783, 1969 Ida. LEXIS 229 (Idaho 1969).

Opinion

SHEPARD, Justice.

This action arises from a contract for the sale of the Jerome County ranch of the respondents Mecham, hereinafter called sellers, to appellants Roscoe Nelsons, hereinafter called buyers. A purchase and sale contract together with contemporaneous escrow instructions were executed by sellers and buyers on May 6, 1964. The total purchase price was recited as $80,000, pay *785 able $6,000 down, and the balance of $74,-000 payable as follows:

“As soon as they are reasonably able to do so, the sellers will obtain a maximum loan secured by a mortgage on the above described real property from a reliable lending agency. The buyers shall cooperate in every way in obtaining said loan and mortgage even to the point of joining with the sellers in executing the promissory note and mortgage, should that be required by the lending agency.”

The loan was to be thereafter assumed by buyers and the proceeds thereof to be paid to sellers after the discharge of a pre-existing mortgage in the approximate amount of $4,000. It was anticipated that the “maximum loan” would yield approximately $18,000 to $21,000. The remaining balance was to be paid by buyers through the escrowholder: $500 plus interest on December 1, 1964; $1,000 plus interest on December 1, 1965; $1,000 plus interest on December 1, 1966; $7,500 plus interest on December 1, 1967, and a like amount on December 1st of each year thereafter until the principal balance together with interest had been completely paid.

The escrow instructions indicated that the escrow depositary was authorized and directed to pay sellers $3,000 of the down payment at the time of obtaining notice of clear title and was to thereafter collect the additional payments, pay a real estate commission and then furnish the balance to the sellers.

The contract provided that the sellers were to furnish a purchaser’s title insurance policy at such time as the “maximum loan” and mortgage were obtained. The buyers were to pay all taxes, assessments and water payments for 1964 and the following years. The contract contained a forfeiture clause providing that sellers might give notice of default in the event buyers defaulted in any material aspect, and that failing correction of such default within 90 days the buyers would forfeit all interest to the property and all monies previously paid. In such event the buyers agreed to surrender possession and absent such surrender they would be deemed to be tenants holding over after the expiration of their term.

Buyers deposited the $6,000 in escrow and immediately went into possession. Sellers thereafter attempted to secure the “maximum loan” by making application therefor to the Utah Mortgage Loan Corporation. Buyers placed appellants Russell Nelsons in possession of the property as tenants and returned to California where they were residents.

The “maximum loan” was never obtained; nevertheless the escrow depositary paid to sellers $3,000 and retained the balance of $3,000. The evidence does not reveal that the title insurance policy was ever issued. After repeated requests by sellers, buyers agreed to release an additional $2,000 from the escrow depositary on November 23, 1964. On February 24, 1965, buyers paid directly to sellers $2,000. On March 26, 1965, buyers paid the Federal Land Bank of Spokane $504 as payment on the existing mortgage. On May 21, 1965, buyers paid directly to sellers $1,500. Such payment was the last made by buyers.

The non-payment of any additional sums is explained in that on July 21, 1965, sellers served a written notice of default alleging that buyers had failed to cooperate with sellers in obtaining the “maximum loan”, had failed to pay the $500 payment plus interest due on December 1, 1964, and failed to pay a water assessment of $122.12.

During October and November, 1965, the parties negotiated in attempting to reform the contract and buyers attempted to obtain a loan in their own name. These efforts proved unsuccessful and in December a notice of forfeiture and demand for surrender of the premises was served by sellers. The appellants refused to vacate the premises, and in fact remained in possession until after judgment by the trial court. The present action was filed December 13, 1965.

The complaint reiterated the default grounds specified in sellers’ previous notice, *786 declared the contract forfeited and requested the District Court to restore the property, quiet title in them, grant damages, including damages for unlawful detainer, and award them attorney fees.

Buyers denied default, and prayed for specific performance or in the alternative damages for sellers breach and for attorney fees.

The case was tried to the court without a jury and the court found that the buyers had defaulted in failing to make the full down payment, failing to cooperate in obtaining the loan, failing to pay deferred principal installments, failing to pay the full amount of interest for the years 1965 and 1966, and failing to pay water assessments. It found the buyers guilty of unlawful detainer for the years 1966 and 1967. Damages were awarded sellers on the basis of the reasonable rental value of the property for the period between May 6, 1964 and December 31, 1965. Damages for unlawful detainer were awarded by trebling the reasonable rental value of the property for the years 1966 and 1967. Against said amounts the court set off $11,175.03, representing payments, legal and title fees, property taxes, irrigation assessments and fire insurance, all paid by bujrers. Costs and attorney fees in the amount of $3,500 were awarded sellers and the clerk of the court was ordered to pay the sellers $742.50 deposited with him by the escrow depositary. The court ordered the buyers to surrender the premises to the sellers and quieted title in the sellers.

Appellants assign error, among others, in the trial court’s findings and conclusions that the buyers had breached the contract and were in default thereof for failure to cooperate in obtaining the “maximum loan”, for failure to make specified payments, and that buyers were guilty of unlawful detain-er during the years 1966 and 1967 for which sellers were entitled to treble rents.

Respondents contend that appellants’ assignments of error do not conform to the requirements of Rule 41 of this Court in that they are too general and thus should not be considered. Appellants’ brief taken as a whole adequately reveals the position and assertions of appellants in such a way that they could be and were met by respondents and therefore the Court will proceed to consider the merits. Burton v. Bayly, 50 Idaho 707, 300 P. 359 (1931); Mountain States Implement Co. v. Arave, 49 Idaho 710, 291 P. 1074 (1930); Thibadeau v. Clarinda Copper Mining Co., 47 Idaho 119, 272 P. 254 (1928).

Appellants contend, as above stated, that the trial court erred in its findings that the appellants had failed to cooperate in obtaining the “maximum loan” and that such failure constituted a material breach of the contract. The evidence does not sustain such a finding. Sellers produced one David R. Mead, an officer of the Utah Mortgage Loan Corporation, as a witness.

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Bluebook (online)
451 P.2d 529, 92 Idaho 783, 1969 Ida. LEXIS 229, Counsel Stack Legal Research, https://law.counselstack.com/opinion/mecham-v-nelson-idaho-1969.