Newman v. Kay

68 L.R.A. 908, 49 S.E. 926, 57 W. Va. 98, 1905 W. Va. LEXIS 16
CourtWest Virginia Supreme Court
DecidedFebruary 7, 1905
StatusPublished
Cited by23 cases

This text of 68 L.R.A. 908 (Newman v. Kay) is published on Counsel Stack Legal Research, covering West Virginia Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Newman v. Kay, 68 L.R.A. 908, 49 S.E. 926, 57 W. Va. 98, 1905 W. Va. LEXIS 16 (W. Va. 1905).

Opinions

POEEENBARGER, JUDGE:

Whether a certain sale of real estate, the contract having been executed by conveyance and payment of all the purchase money, was a sale by the acre or in gross, is the first question presented in this case; and it being held to have been a sale in gross, the second is whether the sale can be rescinded in equity on the ground of a considerable excess, found upon surveying the tract of land, both parties having been ignorant, at the time of the sale, of the quantity of the [100]*100land and both being entirely free from any fraud or misrepresentation as to quantity.

In 1884, W. W. Newman, a resident of Virginia, died seized of a tract of land in Fayette county, this State, described in his deed by metes and bounds, as containing two hundred acres and thirty-seven poles, and leaving his widow and two sons suiwiving him. On the 23rd dajr of October, 1895, the widow and sons conveyed the lands to James Kay, in consideration of $4,800.00 of which $1,000.00 was paid in cash, and for the residue of which the purchaser executed his four negotiable notes in equal amounts, payable in one, two three and four years. This deed described the land thereby conveyed in the exact language used in the old deed by which it had been conveyed to W. W. Newman, in 1814, and reserved a vendor’s lien for the unpaid purchase money.

Some time afterwards, Kay had the land surveyed and found that the tract contained two hundred and seventy-two and two-tenths acres, and had the land book corrected accordingly. Knowledge of this excess of seventy-two acres having come to the Newmans, they caused a notice to be served on Kay on the 26th day of October, 1900, reciting the discovery of the excess, claiming they had sold by the acre in ignorance of the quantity, demanding payment for the excess at the contract price of $24.00 per acre, or a rescission of the sale, and averring their readiness and willingness to repay the purchase money with interest. Kay having refused to do either, they brought this suit, alleging in their bill the facts relating to the sale, hereinbefore set out, and, in addition thereto, that, at the time the deed was executed, they believed the tract contained only the quantity mentioned in the deed, and so represented to J. M. Richards who negotiated and consummated the sale; that, at the time, they did not know it contained a larger quantity; and that they were informed and believed said Richards and Kay accepted the deed with the understanding that the quantity of land was as stated in the deed.

A few days before the deed was executed, the Newmans executed to Richards, “his heirs and assigns,” an option on the land for twenty days, at the price of $24.00 per acre, describing the tract as containing, by estimation, two hundred acres, and the bill sets up the option and alleges that when [101]*101Richards came and negotiated for it, he represented that he desired to purchase the land for some person other than himself, whose name he did not disclose. It is further shown that Richards returned to Virginia a few days after the execution of the option with the deed prepared to be executed by the Newmans, conveying the land to Kay, which, it is charged, he represented to be in exact conformity with the terms and stipulations of the option, except that it set forth the aggregate amount of purchase money instead of specifying the price per'acre; and that this variance was discussed at the time of the execution of the deed, and the plaintiffs were assured that the deed was in substantial 'conformity with the option. The option, the notice served on Kay, and copies of the deed to Kay and the deed to W. W. Newman are exhibited with the bill.

It is further alleged that Kay has leased the land to Frank Lyman, who is made a defendant, for the purpose of mining and removing the coal underlying it, and that Lyman has released it to the Low Moore Iron Company, but that none of the coal had been mined at the time of the institution of the suit; and plaintiffs aver their willingness, in case the sale shall be rescinded, to carry out the terms of the lease made to Lyman and the one made by Lyman to the iron company.

. The prayer is that Kay be required to pay plaintiffs for said excess at $24.00 per acre with interest from the date of the deed, or that .the sale and deed be rescinded, and that they may have general relief.

Kay demurred to the bill, and, his demurrer being overruled, he answered, denying that Richards was his agent in the matter of the purchase, averring that he purchased from Richards for the sum of $5,440.00, giving him $644.00 in addition to the $4,800.00 paid to the Newmans; that he had no notice or knowledge of the option; that Richards acted for himself and represented that he had authority to sell and procured and delivered the deed as aforesaid; that "the sale was one in gross, the land having been purchased by the defendant to solidify his holdings of surrounding lands, and irrespective of its acreage-; that such was the inducement and understanding of the parties; that the quantity of the land was easily ascertainable and could easily have been known by plaintiffs, had they exercised ordinary care;. that they had [102]*102conveyed by the description and statement of quantity contained in the deed to-W. W. Newman; that the defendant, upon the faith and credit of said purchase, had expended large sums of money, whereby the property had been greatly enhanced in value, and sold to third parties who had made further heavy expenditures on account thereof, in consequence of which the plaintiffs were barred by laches; that the plaintiffs sold and received pay for the exact quantity purchased and paid for by W. W. Newman, wherefore, his vendors, if anybody, were entitled to pay for the excess; that defendant had made large expenditures in rendering said tract and others, near to, or adjoining it, valuable and accessible to market, and effected a coal lease thereon with an option of purchase to Frank Lyman, who assigned it to the Low Moore Iron Co., and sale of the land was afterwards consummated, and that in the event of a rescission, the parties cannot be placed in statu, quo, wherefore, and because of the laches of complainants, if they ever had any right, a court of equity cannot entertain their suit. Although denying the right of the plaintiffs to have rescission, the respondent asks that, in case the court shall be of opinion that the complainants are entitled to such relief, he may be permitted to pay for the excess.

Depositions were taken and filed by both parties, and, on the hearing, the court pronounced a decree in favor of the plaintiffs for $2,341.44, awarding execution therefor and granting the plaintiffs leave for further proceedings against the land, should said sum and the costs be not paid. From this decree, Kay has appealed.

As the rights and liabilities of the parties to a sale of real estate by the acre materially differ from those arising out of a sale in gross, it becomes necessary to determine, in the first instance, whether the sale now under consideration was by the acre or in gross. The principles governing the construction of deeds and contracts of sales of real estate are exhaustively considered and accurately defined in the case of Crislip v. Cain,, 19 W, Va. 438. In reaching his conclusions, Judge G-beeN, who delivered the able opinion of the Court, in that case, reviewed and analyzed all the Virginia decisions, as well as all the leading cases decided by other courts, and the principles deduced by him from them were

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Bluebook (online)
68 L.R.A. 908, 49 S.E. 926, 57 W. Va. 98, 1905 W. Va. LEXIS 16, Counsel Stack Legal Research, https://law.counselstack.com/opinion/newman-v-kay-wva-1905.