Neal v. Owings

194 P. 324, 108 Kan. 73, 1920 Kan. LEXIS 556
CourtSupreme Court of Kansas
DecidedDecember 11, 1920
DocketNo. 22,760
StatusPublished
Cited by5 cases

This text of 194 P. 324 (Neal v. Owings) is published on Counsel Stack Legal Research, covering Supreme Court of Kansas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Neal v. Owings, 194 P. 324, 108 Kan. 73, 1920 Kan. LEXIS 556 (kan 1920).

Opinion

The opinion of the court was delivered by

Johnston, C. J.:

This was an equitable proceeding to compel the delivery of a deed and the completion of a transfer of a tract of land, and from a judgment in favor of Jeannette Neal, the defendants, M. D. Owings and Lillie R. Owings, appeal.

[75]*75M. D. Owings, who owned five hundred and twenty acres of land, listed the tract for sale with Nate Neal for the fixed price of thirty dollars per acre. About nine months later the agent notified Owings, who was then in California, that he had found a purchaser for the tract at the price fixed, one-half of the purchase price to be paid in cash, and the balance to be paid on or before five years, secured by a mortgage upon the land. He sent a contract signed by him in behalf of the owner, and also a general-warranty deed to be executed by the owner to Jeannette Neal, who was the wife of the agent. With this he sent an advance payment of $200 as earnest money, and requested that the papers be signed and, with the abstracts, sent to the First State Bank of Minneola with instructions to the bank to deliver the deed on the payment of the first half of the purchase price and the execution of the mortgage. He also stated that the agent’s commission was to come out of the cash payment made upon the land. The defendant Owings declined to accept the contract as made and suggested several changes that would satisfy him, namely, that the earnest money should be increased from $200 to $1,000; that it contain a stipulation that the purchaser would only get one-third of the growing crop, and to provide that he should get no part of the crop unless the first half of the purchase price was paid before the crop was harvested; a recital that Owings did not’ own or sell a certain windmill and fence on the premises which belonged to another; also that he did not own or sell a crop growing on a small strip of his land that was named. He further required that a statement be placed in the contract as to the exact amount to be paid as the agent’s commission. The purchaser agreed to all the changes proposed and a contract was prepared and signed in accordance with the directions of Owings. This, together with a deposit slip showing that the $1,000 of earnest money had been deposited to his credit in the bank, was sent to Owings. It was also stated that the purchaser was ready to comply with the conditions of the contract as soon as the abstracts were produced showing a merchantable title, and further that the commission of the agent was $415, which was to be taken out of the cash payment when the abstracts were approved. Within a few days Owings wrote the agent that his wife had declined to sign the deed, that he had endeavored to procure her signa[76]*76ture but had been unable to do so and stated some of her objections. In reply to this letter the agent wrote that the purchaser insisted on the completion of the contract that had been made in accordance with his directions and referred him to Judge Price, who had been employed to represent the purchaser. A letter was written by Judge Price stating that he had been instructed by the purchaser to take the matter up with Owings and that if the transfer was not made to bring a suit to compel specific performance. He advised them as to the nature of the contract that had been made and the obligations of the parties under it, asking that they write him at once and that unless the contract was carried out suit would be immediately commenced. Shortly after receiving the Price letter, Owings and his wife joined in the execution of the deed, which they forwarded to the bank with instructions to the bank to bring the abstracts up to date and to close the transaction according to the contract. Directions were also given as to the release of certain mortgages and advising that when the first payment was made and the note for the unpaid balance and the mortgage securing its payment were executed, to deliver the deed to the plaintiff, and then to forward the note and mortgage to him together with a certificate of deposit for the cash payment. When the bank received the contract, the deed, abstracts and other papers, it brought the abstracts up to date and presented them to the plaintiff. Upon examination of the abstracts by the purchaser, the title was found to be satisfactory and the terms of the contract were accepted. The plaintiff placed the cash payment in the bank less the amount of the agent’s commission, and also the note and mortgage duly executed. On the same day, but before the deed was delivered or payment made, the bank received a telegram from Owings telling them not to deliver the deed, and in a letter to the bank he stated that, unless he was compelled to, he was not going to deliver the deed. In the letter he authorized the bank to pay the agent the commission provided for in the contract and directed it to return to the purchaser the earnest money that had been advanced. The present action was. then brought and the bank was made a defendant. It admitted the allegations of the plaintiff to be true, tendered to the court all the money received and also the papers and documents relating to the trans[77]*77action that had been placed in its possession and asked that it be dismissed from the action with its costs. The other defendants denied the authority of the agent, alleged that he had been dilatory in finding a purchaser, and had concealed from the owner the fact that there had been an increase in the value of land, and further that the land was really purchased by the agent for himself in the name of his wife. He further alleged that the contract was made and the deed executed and sent to the bank involuntarily, in that it was done because of the statements of Judge Price, which induced him to believe that the contract was binding upon him, and he alleged that but for these statements the deed would not have been executed. ' Mrs. Owings alleged that the deed executed by her was not her voluntary act, but that her signature was obtained because of the statements in the Price letter, and she set forth other defenses alleged by her husband. Upon application of the plaintiff a receiver was appointed to take care of the rentals accruing on the land during the pendency of the action, and to do such other acts as were necessary to protect the rights of the parties therein.

The first contention of the defendant is that the court erred in appointing a receiver. The case was peculiarly one for the appointment of a receiver. (O’Laughlin v. Prockish, 106 Kan. 616, 189 Pac. 383.) There were growing crops on the land in which plaintiff was interested in case she prevailed in the litigation. It was also important that the cultivable land should be put in crops during the period of litigation and to prevent deterioration and waste. This was the extent of the power given to the receiver. According to plaintiff’s allegation, the contract had been made, the deed executed and both placed in the bank for delivery upon compliance with conditions which it is averred were performed by plaintiff. These things, if shown, made the plaintiff the equitable owner of the land and entitled her to the delivery of the deed. Under these circumstances the covenants of the deed would relate back to the time of the contract and the plaintiff would be entitled to the rents accruing after that date. (Scott v. Stone, 72 Kan. 545, 84 Pac. 117.) Under the pleadings and the showing made on the application as to the crops and the condition of the land, it was for the interest of both parties that a receiver be appointed to care for [78]*78the crops and to prevent waste.

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Cite This Page — Counsel Stack

Bluebook (online)
194 P. 324, 108 Kan. 73, 1920 Kan. LEXIS 556, Counsel Stack Legal Research, https://law.counselstack.com/opinion/neal-v-owings-kan-1920.