Mitchell v. Hughes

157 P. 965, 80 Or. 574, 1916 Ore. LEXIS 71
CourtOregon Supreme Court
DecidedMay 23, 1916
StatusPublished
Cited by33 cases

This text of 157 P. 965 (Mitchell v. Hughes) is published on Counsel Stack Legal Research, covering Oregon Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Mitchell v. Hughes, 157 P. 965, 80 Or. 574, 1916 Ore. LEXIS 71 (Or. 1916).

Opinion

Me. Justice McBeide

delivered the opinion of the court.

1,2. While this is in form a suit in equity, it amounts, in substance, to an action for money had and received; the only equitable feature being the attempt to cancel the judgment obtained upon the note given March 9, 1911. It is conceded that plaintiff, at the time defendants withdrew the deed and water stock [580]*580from escrow, was in default by reason of her nonpayment of taxes, and had been for' some time, and that plaintiff’s husband, who spoke for her and by her statement fully represented her, had expressed his entire inability to pay the amount; and we are satisfied from the testimony that defendants had informed him that unless plaintiff paid everything that was due up to date, including taxes and assessments, the contract would be forfeited. The defendant Hughes testified that, after the note signed jointly by Young, plaintiff’s husband, and herself had been paid, he said to plaintiff’s husband, “Now, Jim, I don’t want any more trouble like I had in the last contract with you, but I sure will take the deed down if you don’t pay,” and that Mitchell said that he did not have the money to pay, whereupon Hughes said, “I thought that you were just putting me off until you got your money for your timber,” to which Mitchell replied, in substance, that he had used the money to help out a relative, and that he would rather do that than to pay it on the place. We are satisfied from the evidence that, both before and after the payment of the note by Young, plaintiff was notified through her husband, and fully understood, that defendants intended to insist on the payment of the taxes and assessments as a condition for allowing the deed to remain in escrow, and that defendants also intended to insist on strict performance of the agreement, and never contemplated at any time waiving the condition in the agreement requiring the payment of taxes and assessments.

Where there is no intention to waive, there is no waiver, unless the conduct of the alleged waiver is such as to have misled the waivee to his prejudice. “Waiver involves both knowledge and intention; an estoppel may arise when there is no intention to mis[581]*581lead. "Waiver depends upon what one himself intends to do; estoppel depends upon what he caused his adversary to do ’ ’: 40 Cyc. 255. In other words, waiver is a voluntary act or declaration, whereby the waiver surrenders some privilege or right. In the case at bar, as before remarked, there is no evidence that defendants, when they accepted from Young the payment of the note upon which he was surety, intended to waive the performance by plaintiff of the conditions of her contract requiring her to pay the taxes when due. Failure to pay defendants the amount which they had been compelled to pay to protect their property was a continuing breach, especially so when plaintiff’s husband had told defendant Hughes that he could not raise the money to pay it.

Neither is there any estoppel arising from the fact that defendants accepted the payment made by Young An estoppel arises where the act or declaration of one party has misled another to his prejudice into doing or failing to do an act. No estoppel is pleaded as such in the complaint or reply. It does not appear that plaintiff in any way changed her attitude in regard to the property, or delayed or neglected to pay the taxes, upon the supposition that the performance of the condition had been dispensed with, or would not be insisted upon, by reason of the payment by Young of a note upon which he was jointly and severally liable with her and her husband. She was unable to pay the taxes before the note was discharged, and was equally unable to pay afterward. No estoppel is either pleaded or proved.

Upon the other features of this case the opinion of the learned judge who decided it in the court below is so clear and convincing that we adopt it as the opinion of this court; the material parts being as follows:

[582]*5823-8. “That the payments for taxes and assessments were past dne and delinquent, and that plaintiff did not pay or tender payment therefor, is also agreed upon and not disputed; but plaintiff proceeds on the theory that defendant has waived the time essence clause, with its attendant forfeiture and application of payments made as being for rent, etc., that defendant did not give direct notice of his election and intention to terminate the contract, and that therefore his withdrawal of the deed was such violation of the contract on his part as excused or waived performance on the part of plaintiff, and that therefore plaintiff would be entitled to be restored to her former position by being reimbursed of all that she had theretofore paid or performed under the contract. Defendant’s evidence is to the effect that he gave and made specific notice and demand, but that is not admitted by plaintiff. The facts in the case that are undisputed and agreed upon are, however, decisive of the case, as this court understands the facts and the legal principles applicable, and it is therefore useless to undertake to determine the exact status of the disputed facts, or to construe what legal effect such notice and demand as are undisputed would have as bearing upon the question of election to declare the contract terminated. It is common experience that contracts of this nature are generally hazardous to the purchaser, in particular, in that they are usually drawn with a view to give vendor ample security against the risks of the loss incident to parting with use and possession, while binding himself to not make other use or disposition of the property during the life of the contract, while the purchaser, not having the title, but only the use and possession, after part performance, undertakes to protect his investment by completing the performance and so become entitled to the property. Under such contracts the vendor cannot by any means compel the purchaser to pay anything whatsoever, if he, the purchaser, sees fit not to pay. As was said in Potter Realty Ca. v. Derby, 75 Or. 563 (147 Pac. 551), where the vendor sought by an action at law to enforce payment of the purchase price: ‘It it not unreasonable to [583]*583assume that the purchaser intended to reserve to himself the one small privilege of losing what money he might have paid, and thereby be automatically released from further obligation. The parties having agreed upon their own remedy for breach of the contract, that remedy is exclusive.’ Under such contracts, as in other cases, neither party can repudiate or cancel the contract for one purpose, and insist upon its continued effect for another purpose. The purchaser cannot claim right to possession, and at the same time deny the obligation to perform the terms; nor can the vendor accept the benefits of performance after default, and at the same time claim forfeiture to have occurred prior to such performance.

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Cite This Page — Counsel Stack

Bluebook (online)
157 P. 965, 80 Or. 574, 1916 Ore. LEXIS 71, Counsel Stack Legal Research, https://law.counselstack.com/opinion/mitchell-v-hughes-or-1916.