Nelson v. Shelby Manufacturing & Improvement Co.

96 Ala. 515
CourtSupreme Court of Alabama
DecidedNovember 15, 1893
StatusPublished
Cited by59 cases

This text of 96 Ala. 515 (Nelson v. Shelby Manufacturing & Improvement Co.) is published on Counsel Stack Legal Research, covering Supreme Court of Alabama primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Nelson v. Shelby Manufacturing & Improvement Co., 96 Ala. 515 (Ala. 1893).

Opinion

COLEMAN, J.

Tbe plaintiff. Nelson, sued in assumpsit to recover back money paid as a part payment for tbe purchase of certain lots sold to him by tbe defendant, (appellee.) The right to recover is based upon two grounds: first, tbe invalidity of tbe contract of sale under tbe statute of frauds; and, second, actual fraud in tbe sale of tbe lots. It is conceded that there was no note .or memorandum of tbe agreement in writing, subscribed by Nelson, tbe plaintiff, or by other person for him, as required by tbe statute. The material facts of tbe sale and purchase, so far as tbe agreement is affected by tbe statute of frauds, are undisputed, and may be briefly stated :as follows:

.After extensive advertisement, on tbe first day of April, lots in tbe town of Shelby, Shelby county, were put upon tbe market for.sale. A fixed valuation was placed upon tbe several lots, and those wishing to purchase drew for first, second and third, &c., choice'of lots at tbe valuation fixed. Tbe town was platted and mapped, upon which could be seen tbe location and size of each lot by number and block, and-its value, and this map was tacked down on a large table in tbe office of tbe company. When it became plaintiff’s turn to select tbe lots be wished to purchase, be went into this office and selected thirteen lots located in different parts of the town, and of various valuations. As each lot was. selected by tbe plaintiff, a written memorandum, signed by tbe company’s agent, was banded to him, and when bis selections were completed, be took tbe several memoranda into an adjoining room, to tbe treasurer of tbe company, made a one-third cash payment, and received from tbe treasurer of tbe company a written receipt for tbe cash payment, and .statement of the contract of sale. Similar memoranda of tbe selection, and receipts for tbe one-third cash payment, [521]*521were executed for each, of the thirteen lots, but, as they were similar, it is necessary to set out only one of each. At the' time of the selection of a lot by a purchaser, the memorandum given was as follows: “Sold to Frank Nelson, dr.: 1 lot, 1 B. 70, block 63, $10.00. For the Shelby Mf’g & Improvement Co., by J. Scliwed.” Upon its presentation to the treasurer, and the payment of the one-third cash payment, a written instrument, as follows, was executed and delivered to the purchaser: “No. 277. Shelby Manufacturing & Improvement Co., Shelby, Ala., April 3d, 1890. Eeceived of Frank Nelson, Jr., two hundred and thirty-three 33-100 dollars, being one-third cash payment on lot No. (1) of block No. 63. Bond for title to said lot will be delivered on execution of notes for balance of purchase-money, and return of this receipt properly indorsed. T. H. Hopkins.”

Suit was brought to recover bade the cash payment, without an offer to execute notes for the balance of the purchase-money, and without previous demand, or further notice of an intention not to abide by the purchase. The ability and readiness of the vendor to carry out its agreement and make good and sufficient bond for title was not questioned. "Whether the plaintiff ever had actual possession of the lots, or either of them, was a controverted question on the trial. There was no objection or hindrance to his taking possession of twelve of the lots purchased, at any time, if the purchaser had seen proper to exercise the privilege. There is some contention as to one of the lots.

We will first consider the question upon the hypothesis that plaintiff in fact never took actual possession, and see whether upon this hypothesis he is entitled to recover back the purchase-money paid. The present Statute of Frauds (Code, § 1732,) provides, that “In the following cases every agreement is void, unless such agreement, or some memorandum thereof, expressing the consideration, is in writing, and subscribed by the party charged, therewith, or some other person by him thereunto lawfully authorized in writing.” Sub-div. 5. “Every contract for the sale of lands, tenements or hereditaments, or any interest therein, except leases for a term not longer than one year, unless the purchase-money, or a portion thereof, be paid, and the purchaser be put in possession of the land by the seller.” The old Statute of Frauds read as follows: “No action shall be brought upon any contract for the sale of lands, tenements, or hereditaments, or the making any lease thereof for a longer term than one year, unless the promise or agreement, upon which such action shall be brought, or some memo-[522]*522ranchim or note thereof, shall be in writing, and signed by the party to be charged therewith, or some other person by him thereunto lawfully authorized.” — Clay’s Digest, p. 254, §1.

Under the older act, that to be found in Clay’s Digest, supra, it was held that a part performance, such as the payment of a part of the purchase-money, and possession, or even possession without payment, when taken in pursuance of, and under the contract, with the assent of the vendor, was sufficient to take the agreement outside the operation of the Statute of Frauds. — Danforth v. Laney, 28 Ala. 274. In such cases, notwithstanding the Statute of Frauds, both parties were bound. The vendee could enforce specific performance against the vendor, although his agreement to sell was wholly in parol. — 28 Ala., supra.

To take an agreement for the sale of land out of the influence of the present Statute of Frauds, when there is no sufficient note or memorandum in writing, there must be a payment in whole or in part of the purchase-money, and, in addition thereto, the purchaser must be put in possession of the land by the seller. When there has been a part payment of the purchase-money, and possession of the laud by the purchaser, the contract for the sale of land is excepted from the statute by its terms, and is mutually binding and enforceable by either party.

We need not consider the difference of the legal effect of the substitution of the word “subscribed” in the later act for the word “signed” as used in the older act, and the further difference that under the present act the agent who signs must have written authority. Excepting these two differences, the language of the two acts is precisely the same, — “and subscribed by the party to be char’ged.” A sound rule of interpretation requires that the same legal significance and effect be placed upon the language “subscribed by the party to be charged,” used in the present statute, as judicially declared under the former act. Many decisions had been rendered by the highest court of this State construing the Statute of Frauds enacted by the legislature, as stated in Clay’s Digest, and were in force when the present statute (both using, in this respect, the same language) was adopted; and we can not suppose the legislature was ignorant of the judicial construction placed upon the statute by other courts and by this court, when the later act was adopted.

In the case of Allen v. Booker, 2 Stewart 21, the plaintiff Booker, sued to recover back money paid upon the purchase [523]*523of land. Tbe contract of sale was wholly in parol, and there was no proof of possession. The question of the ability and readiness of the vendor to comply with the terms of the contract was not raised. The trial court charged the jury that the mere payment of the purchase-money took the contract out of the operation of the Statute of Frauds, and that plaintiff could compel a specific performance on the part of the vendor, and for this reason the plaintiff could not abandon the contract and recover back the amount paid.

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Bluebook (online)
96 Ala. 515, Counsel Stack Legal Research, https://law.counselstack.com/opinion/nelson-v-shelby-manufacturing-improvement-co-ala-1893.