Pomeroy v. Newell

117 A.D. 800, 102 N.Y.S. 1098, 1907 N.Y. App. Div. LEXIS 345
CourtAppellate Division of the Supreme Court of the State of New York
DecidedMarch 8, 1907
DocketNo. 2
StatusPublished
Cited by7 cases

This text of 117 A.D. 800 (Pomeroy v. Newell) is published on Counsel Stack Legal Research, covering Appellate Division of the Supreme Court of the State of New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Pomeroy v. Newell, 117 A.D. 800, 102 N.Y.S. 1098, 1907 N.Y. App. Div. LEXIS 345 (N.Y. Ct. App. 1907).

Opinion

Jenks, J.:

This is an appeal from a judgment dismissing the complaint in an action for specific performance. In consideration of this dispose tion we must remember that such relief is largely in the discretion of the equity courts ” (Dunckel v. Dunckel, 141 N. Y. 434), and that in Stokes v. Stokes (148 id. 716) the following rule was quoted and approved : “ A contract must possess certain elements in order that a court of equity may exercise jurisdiction to compel its performance. ‘ It must be upon a valuable consideration. It must be reasonably certain as to its subject-matter, its stipulations, its purposes, its parties, and the circumstances under which it was made. It must be, in general, mutual.in its obligations and its remedy.’ (3 Pomeroy’s Eq. Jur., sec. 1405.) ”

The plaintiff declares upon an agreement to convey lands in the county of Queens, possessed by the defendants Mrs. Newell and Miss Pomeroy, who were his aunts. At the time of the alleged agreement the plaintiff was in this country and the said defendants were in France. The husband of Mrs. Newell, George B. Newell, Esq., who was the agent of these defendants, .was also in France, and the dealings between the plaintiff and Mr. Newell were by telegraph and by post. The property had been in the family for years and was well known by all of the parties. It had been the subject of correspondence between them for some time. Mr. Newell had put the property in charge of the law firm of Blackwell Brothers of New York city, who were authorized to sell it and who were continuously active to make a sale that would be acceptable to their clients. These facts were familiar to the plaintiff.

It appears that the Messrs. Blackwell made a. sale of the lands to a third party, which the defendants in recognition of the Messrs. Blackwell’s authority in the premises felt bound to confirm and did [802]*802confirm. It was essential then that the plaintiff should establish a prior-engagement of the defendants to him, and thus the contest waged about the telegraphic communications before the period that the Blackwells notified the plaintiff of the sale made by them. This was February fifteenth. On February 9, 1905, the plaintiff had telegraphed to Mr.'Newell: “ Will give Pomeroy and Newton (or Newell), seventy-five thousand for Astoria property free and clear. Answer.” On February 10, 1905, Mr. Newell had telegraphed: “ Will take cash above all liens which you must assume.” On that day the plaintiff telegraphed to Newell': “Will you accept fifty, thousand cash, I assuming all liens?” On February eleventh Mr.' Newell had telegraphed: “ Will take sixty thousand cash above all liens and commissions.” On' February eleventh the' plaintiff telegraphed: “Will you give thirty day option at last figures ? ”. And on ■ February twelfth Mr. Newell ■ telegraphed;: “Will give thirty day option. ■ Notify Blackwell.” On February fourteenth the plaintiff telegraphed: “Tour, cable granting option received. Have accepted option. Notified Blackwell.”

The issue as to an agreement was finally defined as to .the force and effect of the expression, “ Have accepted option,” the plaintiff insisting that thereby he agreed to purchase the property and the defendants contending that thereby the plaintiff but agreed to establish, an option between the parties whereby if he offered the' stipulated price within thirty days he would purchase the property.. The learned Special Term sustained the defendants, and I am of opinion that its judgment should be affirmed. The determination of the intention is not dependent on the question whether the language used was futile or effective; by this I mean whether the - plaintiff thereby did or did not secure an option. If he sought, to secure an option and did not, we. should not, therefore,, hold that lie he did not intend to secure it. The agreement for an option and the option are two different things (Ide v. Leiser, 10 Mont. 5; Black v. Maddox, 104 Ga. 157; 21 Am. & Eng. Ency. of Law ;[2d ed.], 924 and 925), and. the mere assent to an offer of an option is not a purchase qnder the option. (Chicago & G. E. R. Co. v. Dane, 43 N. Y. 240.) Otherwise acceptance of the offer of an option would destroy the option by merging it in the purchase. In this case, the plaintiff, in order to maintain his legal right, was. forced [803]*803to declare on an agreement to purchase, for if he stood upon the proposition that the words “ Have accepted option ” secured for him an option, he must fail, inasmuch as what the parties supposed was an option was but a mere continuing offer, in that there was no-consideration for it, and hence it could be withdrawn at any time ' before the plaintiff availed himself of it. (21 Am. & Eng. Ency. of Law, supra, 929; Quick v. Wheeler, 78 N. Y. 300, 304. See, too, Dickinson v. Dodds, L. R. 2 Ch. Div. 463; Boston & Maine Railroad v. Bartlett, 3 Cush. 225.) And the sale by the Black-wells would amount to such withdrawal. (Dickinson v. Dodds, supra.)

The words “ Have accepted option ” have not received a judicial definition from the Court of Appeals so as to warrant the assumption that the parties had a settled definition in mind. (Slocovich v. Orient Mut. Ins. Co., 108 N. Y. 56.) The industry of the learned counsel for the appellant has collected instances of the use of this expression, in judicial opinions and in legal head notes, to describe past acts in closing the option. It may be conceded that such uses were accurate, but on the other hand instance is not wanting of a use of the same expression in the sense contended for by the defendants in this case. In Chicago & G. E. R. Co. v. Dane (supra), Grover, J., for the court, writes: “.Upon the receipt of .the defendants’ offer to transport not to exceed 6,000 tons upon the terms specified, it merely accepted such offer and agreed to be bound by its terms. This amounted to nothing more than the acceptance of an option by the plaintiff for the transportation of such quantity of iron by the defendants as it chose; and had there been a con-' sideration given to the defendants for such option the defendants' would have been bound to transport for the plaintiff such iron as it required within the time and quantity specified, the plaintiff having its election not to require the transportation of any.” We are not limited by legal definition or by rigid meaning, but the question may be answered in consideration of the meaning of the words, in the light of surrounding circumstances, of the purpose in mind and of the end sought. (Maloney v. Iroquois Brewing Co., 173 N. Y. 303; Gillet v. Bank of America, 160 id. 549.)

The parties had failed to make any agreement for immediate . purchase, and they were apart as to the purchase price. The defend. [804]*804ants demanded more 'than the plaintiff offered... Thereupon the plaintiff’s object was to secure an option in order, as he says, that he might look into the “ taxes, assessments, arrears and interest.” It ■is to be- noted that the plaintiff did nbt ask- for the option, so "that an answer of' the defendants, might constitute a meeting of the minds, nor did he make an offer that he would take an option. He but makes, inquiry, Will you give thirty day option at last figures ?, ” In Wald’s Pollock on Contracts (Williston’s 3d ed. p.

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Cite This Page — Counsel Stack

Bluebook (online)
117 A.D. 800, 102 N.Y.S. 1098, 1907 N.Y. App. Div. LEXIS 345, Counsel Stack Legal Research, https://law.counselstack.com/opinion/pomeroy-v-newell-nyappdiv-1907.