Nielsen v. Northern Equity Corp.

286 P.2d 1031, 47 Wash. 2d 171, 1955 Wash. LEXIS 327
CourtWashington Supreme Court
DecidedAugust 18, 1955
DocketNo. 32881
StatusPublished
Cited by3 cases

This text of 286 P.2d 1031 (Nielsen v. Northern Equity Corp.) is published on Counsel Stack Legal Research, covering Washington Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Nielsen v. Northern Equity Corp., 286 P.2d 1031, 47 Wash. 2d 171, 1955 Wash. LEXIS 327 (Wash. 1955).

Opinion

Hamley, C. J.

H. B. Nielsen and Mrs. Nielsen, vendees ■under a real-estate contract, brought this action for specific performance. They alleged that the balance then due on the contract was $19,008.82, and offered to pay this sum to the vendor, Northern Equity Corporation. Ted Quackenbush and Mrs. Quackenbush are the principal stockholders of the corporation.

In its answer, defendant alleged' that the balance due was $25,969.35 plus • certain interest. The corporation also claimed a forfeiture of the contract for delinquency in the payment of monthly installments.

Judgment was entered for plaintiffs, decreeing specific performance upon the payment by plaintiffs of $16,158.78 plus certain interest. Defendant appeals.

There is no disagreement between the parties as to the purchase price of the real estate. It was forty thousand dollars. The parties are in dispute, however, as to the agreed purchase price of certain personal property on the premises. Appellant sold this property to respondents in connection with the real-estate transaction. Appellant contends that the agreed price of this personal property was ten thousand dollars, five thousand dollars of which was paid when the bill of sale was delivered, and five thousand dollars of which was to be paid a few months later. Accordingly, when respondents later paid such a sum, appellant applied it to pay the balance which it asserts was due on the personal property.

Respondents, on the other hand, contend that the agreed price of the personal property was five thousand dollars, which was paid when the bill of sale was delivered. It is their position that the five-thousand-dollar payment which was later made should have been .applied on the purchase price of the real-estate contract.

We are asked to review the findings of fact which reflect respondents’ version of this transaction. We therefore turn to the record.

The property in question, which had been operated as a restaurant, is situated at 711 Elliott avenue west, in the [173]*173city of Seattle. On August 28, 1948, H. B. Nielsen and Ted Quackenbush (for the corporation) executed an earnest money agreement under which Nielsen acquired the right to purchase this real estate and certain inventoried personal property on the premises for fifty thousand dollars.

The agreement did not segregate the purchase price as between the real estate and the personal property. It recited that twenty-five hundred dollars had been paid by check as earnest money in part payment of the purchase price. It also provided that twenty-five hundred dollars was to be paid on October 5, 1948, or upon possession, and three hundred fifty dollars per month or more thereafter, except that on March 1, 1949, and August 1, 1949, payments of five thousand dollars or more were to be made.

Respondents took possession about October 5, 1948, and thereafter reopened the restaurant under the name “Selandia Smorgasbord.”

Late in October, 1948, the parties executed escrow instructions to the Washington Title Insurance Company. In this connection, there were delivered to that company the following: the twenty-five-hundred-dollar earnest money check; Nielsen’s additional check for twenty-five hundred dollars; a bill of sale to personal property on the premises, as listed in an attached inventory; and a real-estate contract.

The bill of sale recited “in consideration of the sum of Five Thousand ($5,000) Dollars . . . ” The inventory attached to the bill of sale was substantially the same as the inventory attached to the earnest money agreement, except for the omission of “16 tables upstairs.” The real-estate contract described the same real estate as was described in the earnest money receipt. It set forth a purchase price of forty thousand dollars, the unpaid balance of which was to be paid at three hundred fifty dollars a month, except that, on August 5, 1949, a payment of five thousand dollars was required.

Nielsen testified that the intent of the parties, as shown by the escrow instructions, bill of sale, and real-estate con[174]*174tract, was to reduce the over-all price for the real estate and personal property from fifty thousand dollars to forty-five thousand dollars. In explanation, he stated that, when the earnest money agreement was executed, he had counted on the proceeds of a sale he had made of other restaurant property—the so-called Hepp-Black contract. He later experienced difficulty in obtaining a transfer of the lease on that restaurant to the new owners, and it appeared that he might have to repossess that property. Nielsen testified that, because of this development, he told Quackenbush, prior to the time that the escrow instructions were executed, that the Nielsens might not be able to complete the purchase of the Elliott avenue property in accordance with the earnest money agreement. It was Nielsen’s testimony that Quackenbush then agreed to sell the real estate for forty thousand dollars and the personal property for five thousand dollars.

Quackenbush denied that there was any conversation with Nielsen, subsequent to the earnest money agreement, concerning the gross purchase price. He testified that their conversation concerned only the title to the personal property. According to Quackenbush, Nielsen wanted a clear title to the personal property so he could sell or trade it in on new furnishings. It was accordingly orally agreed, Quackenbush testified, that Nielsen, on the payment of five thousand dollars, would be given a bill of sale to this property, and that the balance (five thousand dollars) would be paid “as per our agreement in the earnest money receipt.”

Payments of three hundred fifty dollars were made in the months of December, 1948, and January, February, and March, 1949. In April, 1949, appellant agreed to accept an assignment of respondents’ interest, as vendor, in the HeppBlack contract. The unpaid balance due on this contract was $10,832.91. Upon receiving the assignment of this contract, appellant gave respondents two receipts, both dated April 1, 1949. One of these acknowledged receipt of five thousand dollars “on purchase of 711 Elliott Ave. West property.” The other acknowledged receipt of $5,832.91, “to be applied [175]*175on the contract of purchase of 711 Elliott Ave. West, Seattle, Wash.”

Nielsen testified that it was understood that this total credit of $10,832.91 would be applied on the real-estate contract. It is undisputed that, upon receipt of this assignment, appellant agreed to waive the monthly payments until September, 1949, including the five-thousand-dollar payment due in August, 1949. The three-hundred-fifty-dollar monthly payments were resumed at that time.

In June, 1952, respondents sold Selandia to one Gunnar Hansen. In order to complete this sale, respondents sought a conveyance from appellant upon payment of the amount respondents considered to be due. It was then that the disagreement as to the purchase price came to light.

At the trial, the fact was developed that respondents’ books of account, as maintained by Robert D. Lyman, a licensed public accountant, had at all times been set up on a basis of forty thousand dollars as the purchase price of the real estate, and ten thousand dollars as the purchase price of the personal property. In keeping therewith, income tax returns, financial statement given to the bank, and periodic statements given to Nielsen consistently showed this information.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Becker v. Lagerquist Bros., Inc.
348 P.2d 423 (Washington Supreme Court, 1960)

Cite This Page — Counsel Stack

Bluebook (online)
286 P.2d 1031, 47 Wash. 2d 171, 1955 Wash. LEXIS 327, Counsel Stack Legal Research, https://law.counselstack.com/opinion/nielsen-v-northern-equity-corp-wash-1955.