Oconto Co. v. Bacon

195 N.W. 412, 181 Wis. 538, 40 A.L.R. 175, 1923 Wisc. LEXIS 239
CourtWisconsin Supreme Court
DecidedOctober 19, 1923
StatusPublished
Cited by36 cases

This text of 195 N.W. 412 (Oconto Co. v. Bacon) is published on Counsel Stack Legal Research, covering Wisconsin Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Oconto Co. v. Bacon, 195 N.W. 412, 181 Wis. 538, 40 A.L.R. 175, 1923 Wisc. LEXIS 239 (Wis. 1923).

Opinion

Rosenberry, J.

An opinion was filed in this case on March 6, 1923. After the time in which a motion for a rehearing might be made had expired, it was called to the attention of the court that the decision as written was misunderstood and had introduced some confusion into the law relating to the rights of vendor and purchaser under a land [543]*543contract. The decision was withdrawn, the authorities reviewed, and the entire subject reconsidered, resulting, however, in no change in the mandate, nor, as we understand it, in the law as declared in the former opinion.

Upon the trial it was contended by the defendants that that clause of the contract relating to the making of the improvements was waived by the plaintiff company by reason of the fact that one Dunham, an agent of the Home Land Company, which last named company was the plaintiff’s sales agent, had advised the defendant Flynn that the making of the improvements would not be insisted upon by the plaintiff. The record is barren of any evidence showing that Dunham or the Home Land Company, whose agent he was, had any authority to waive any of the provisions of the contract.

The principal contention of the defendants is that upon the undisputed facts it appears that the plaintiff had elected to foreclose the contract and had thereby waived its right to declare the contract at an end. This claim is based upon statements contained in the letters of July 7th and July 16th, the material parts of which are set out in the statement of facts.

Under Shenners v. Pritchard, 104 Wis. 287, 80 N. W. 458, and Foster v. Lowe, 131 Wis. 54, 110 N. W. 829, it cannot be doubted that upon the breach of the conditions of a land contract the vendor has three remedies: (a) he may elect to sue for the unpaid purchase money; (b) he may elect to sue for specific performance of the contract; and (c) he may elect to declare the contract at an end. See, also, Kunz v. Whitney, 167 Wis. 446, 167 N. W. 747.

There can be no doubt that the election of one of these remedies waives the others. The question in this case is, What constitutes a sufficient election?

In Fox v. Wilkinson, 133 Wis. 337, 113 N. W. 669, it is said:

“Since such choice is merely mental, any unambiguous act consistent with one and inconsistent with the other of [544]*544the elective positions will be deemed conclusive evidence of such election.”

While this language was not used with reference to a land contract, it is applicable upon the general question of what constitutes an election of inconsistent remedies. See Smeesters v. Schroeder, 123 Wis. 116, 101 N. W. 363.

The letters of July 7th and July 16th can scarcely be said to be unambiguous. In the letter of July 7th the plaintiff says that it will cancel the contract, although by the same letter it extends the time of payment until July 14th. In the letter of July 16th it says: “This is to notify you that the said contract is canceled,” although it is also said in that letter that if the quitclaim deed is not returned properly executed, “We will proceed to foreclose the contract and will take judgment against you for the full amount of claim including costs.”

At all times after. July 16th the plaintiff contended that the contract was at an end and did nothing inconsistent with that position. It refused to accept the tender of the remainder of the purchase price made by Flynn and held that the contract was void and no longer in force. The use of the word “foreclosure” and the threat to take judgment for the amount of the claim are inconsistent with the notice of cancellation. If so, it cannot be said to be unambiguous. The action of the plaintiff in refusing to accept the tender, its insistence that thereafter the contract was at an end, and the commencement of this action to quiet its title to the premises, are all consistent. We hold that it exercised the third right as defined in Shenners v. Pritchard, 104 Wis. 287, 80 N. W. 458.

It is further contended that equity will not give its aid in the enforcement of a forfeiture, and this leads us to the consideration of the respective rights of the vendor and purchaser under the ordinary form of land contract under the laws of this state. At common law the vendor had the right to maintain an action of ejectment against the purchaser [545]*545after condition broken, where the purchaser was let into possession under the contract. Gillett v. Eaton, 6 Wis. 30; 3 Wait, Actions and Defenses, 67; 107 Am. St. Rep. 724.

The action of ejectment was a legal remedy and was employed to enforce legal rights. In Whittier v. Stege, 61 Cal. 238, 241, the law is stated thus:

“When, therefore, the defendants, after they had obtained possession lawfully, substituted repudiation of the contract and refusal to comply with its terms, for. performance or willingness to perform, they divested themselves by their wrongful act of the equitable estate which they acquired under the contract, and became trespassers or tenants at will, against whom their repudiated vendors could maintain ejectment. The vendors were remitted to their legal title, and in an action upon it the defendants could not invoke as a defense to it a contract of sale which they repudiated and refused tó perform.”

In some jurisdictions unlawful detainer is by statute made available for the vendor, under similar circumstances. Vos v. Dykema, 26 Mich. 399; Haskins v. Haskins, 67 Ill. 446; Ruth v. Smith, 29 Colo. 154, 68 Pac. 278.

In Wright v. Roberts, 22 Wis. 161, it was held that, where the contract provides that the purchaser should “hold the premises from its date as tenant at sufferance of the vendor, subject to be removed as a tenant holding over in case of a default,” etc., an action for use and occupation could be maintained against the purchaser, and it is stated inferentially in the course of the opinion that under a contract of that character an action of unlawful detainer would lie, citing ch. 33 of 2 Hilliard on Vendors.

In Diggle v. Boulden, 48 Wis. 477, 4 N. W. 678, an action was brought by the vendor for strict foreclosure of the land contract. The purchaser set up that the vendor had an adequate remedy at law in an effort to defeat the vendor’s action, and it was held that an action of unlawful detainer was not adequate for the very good reason that, though the purchaser might be ousted of his possession, his [546]*546equities would not be foreclosed. The case did not hold that under facts similar to those in Wright v. Roberts, 22 Wis. 161, an action of unlawful detainer would not lie.

However, in Hill v. Sidie, 116 Wis. 602, 93 N. W. 446, it was said that the two cases are in direct conflict in principle and it was held that the case of Diggle v. Boulden, supra, was thenceforth to be followed, and that an action of unlawful detainer, where the relation of vendor and purchaser existed, was no longer available to the vendor where there was a breach of condition.

Such confusion as exists in respect to the law upon this subject is due mainly to a failure to distinguish between legal and equitable actions and defenses and a failure to read the language of the opinions in the various cases with reference to the facts which were before the court in those cases.

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Bluebook (online)
195 N.W. 412, 181 Wis. 538, 40 A.L.R. 175, 1923 Wisc. LEXIS 239, Counsel Stack Legal Research, https://law.counselstack.com/opinion/oconto-co-v-bacon-wis-1923.