Reard v. Ephrata Orchard Homes Co.

138 P. 678, 78 Wash. 180, 1914 Wash. LEXIS 995
CourtWashington Supreme Court
DecidedFebruary 16, 1914
DocketNo. 11355
StatusPublished
Cited by6 cases

This text of 138 P. 678 (Reard v. Ephrata Orchard Homes Co.) 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
Reard v. Ephrata Orchard Homes Co., 138 P. 678, 78 Wash. 180, 1914 Wash. LEXIS 995 (Wash. 1914).

Opinion

Mount, J.

The plaintiffs brought this action to annul an executory contract and for the possession of lands described in the contract. The cause was tried to the court without a jury, and resulted in a judgment substantially as prayed for in the complaint. The defendant has appealed.

The facts are, in substance, as follows: On the 16th day of August, 1909, the respondents, J. D. Heard and wife, entered into a written contract with' one L. V; Wells. This contract, by mesne conveyances, was assigned to the appellant. This contract provided for the sale by the respondents to the appellant of 380 acres, more or less, of unimproved land, located near the town of Ephrata, in Grant county. The purchase price was $30,000, payable in installments as follows: $4,000 on or before March 1, 1910; $2,000 on or before July 1, 1910; $10,000 on or before March 1, 1911; $10,000 on or before March 1, 1912; and $4,000 on or before March 1, 1913; all deferred payments to draw interest from the 16th day of August, 1909, at the rate of six per cent per annum, payable annually on the 16th day of August of each year until the whole sum was fully paid.

[182]*182The contract also provided, as a consideration therefor, that certain acts were to be performed by the vendee, among which were the payment of all taxes, assessments, etc., which might accrue against the property after the date of the contract; the digging of a well of a certain capacity and the installation of an irrigation system in connection therewith; and the platting of the land into tracts. Time was declared to be the essence of the contract; and it was provided therein that, in case of default .on the part of the vendee in the performance of any of the obligations, the vendors were released from all obligations in law or equity imposed by the contract. The contract also contained a provision as follows:

“Provided, that when the said second party shall have paid to the said first parties the sum of ten thousand dollars according to the terms of this contract he shall upon the execution and delivery to said first parties of his promissory notes for the balance unpaid, said notes to be for the same amount, payable at the same time and draw the same rate of interest as the deferred payments then unpaid, under the terms of said contract and secure said notes by a first mortgage upon such portions of said real estate as has not been conveyed by said first parties under the terms of this contract, be entitled to a warranty deed for all the remainder of said premises.”

The contract also provided that, upon final payment, the vendors were to have a good and. sufficient deed to the premises, free and clear of all incumbrances. The appellant, or its predecessor in interest, paid the first two installments of $4,000 and $2,000. No other sum was ever paid or tendered to the vendors.

When the appellant was in default in the payment of $10,-000 due on March 1, 1911, and interest up to that date, the respondents, at the solicitation of the president of the appellant corporation, agreed orally that, if the appellant would pay $4,000 and the accrued interest at the rate of 10 per cent per annum, and would execute notes secured by a mortgage upon the property, the respondent would thereupon [183]*183execute a deed conveying the title to the appellant. Thereafter, on May 27, 1911, notes and a mortgage, and a deed to the property were deposited in a bank in Seattle to be delivered to the appellant, or its assigns, upon the payment of $4,000 and accrued interest, amounting altogether to something like $7,000.

Thereafter, about July 1, 1911, the respondents notified the appellant that, unless the oral agreement was complied with and the money paid as therein agreed, they would withdraw the papers delivered in escrow and rescind the oral agreement. After this notice, the appellant did not comply with the oral agreement, and' the papers were withdrawn and the oral agreement rescinded. Thereafter, on July 15th the respondents served a written notice upon the appellant that, if the terms of the written contract were not complied with by July 24, 1911, the contract would be deemed null and void and all moneys paid would be declared forfeited according to the terms of that contract. No further payments were made, and on July 24th the respondents filed a written declaration of forfeiture in the office of the auditor of Grant county, and on July 26th served a copy upon the appellant company. Thereafter, on March 4, 1912, this action was begun.

The facts above stated are not disputed. In the complaint it was not alleged that the respondents at the time the written notice of forfeiture was served, or at any time, tendered a deed of the premises to the appellant. And it was not claimed upon the trial that any deed had been tendered.

It is claimed by the appellant that the reason for not complying with the oral agreement entered into as aforesaid was,, that a patent had not been issued by the United States for 160 acres of the land in question, and by reason of that fact there was a failure of title. The principal contention of the appellant, and the only one which we deem necessary to notice in this case is, that the tender of a good and sufficient deed was a mutual dependent and concurrent act, necessary to be performed by the respondents before a forfeiture could be de[184]*184dared. That it was both necessary to allege a tender of a deed and to prove that fact before the court was authorized to annual the contract. A number of cases from this court are relied upon to sustain this proposition, among which are Stein v. Waddell, 37 Wash. 634, 80 Pac. 184, and Reese v. Westfield, 56 Wash. 415, 105 Pac. 837, 28 L. R. A. (N. S.) 956. But we think this case is not controlled by the rule in those cases. In Reese v. Westfield, supra, we said:

“If the case of Stein v. Waddell and the succeeding cases to which we have referred have been hitherto misunderstood, we desire now, for the sake of certainty, to lay down the rule that, where land is sold under a time contract calling for payment by installments, and every installment has been paid except the last one, the vendor may, if he act with reasonable promptness, declare a forfeiture, unless by the terms of the contract he has agreed to perform some act necessary to the complete performance of his agreement, as, for instance, the giving of an abstract or the tender of a deed, in which event his power to forfeit depends upon his offer and ability to perform ; for, as this court has said, his duty to tender performance depends upon, and is concurrent with, the duty of the vendee to meet the final payment.”

It will be noticed, from what we have already said above, that, at the time this action was begun, all the payments provided for in the contract had not been made. Two payments only had been made, one of $4,000 due on the 1st day of March, 1910, and one of $2,000 due on the first day of July of the same year. The payment of $10,000 due March 1, 1911, was in default, and also the interest, amounting to more than $1,000 due on the 16th day of August, 1910. The provision above quoted to the effect that, when $10,000 had been paid upon the contract and promissory notes secured by mortgage had been executed for the balance unpaid, it was the duty of the respondents to deliver a warranty deed for the remainder of the premises, was merely an option which the appellant was entitled to exercise or reject as it saw fit. Until it exercised that option to pay the balance of the

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Bluebook (online)
138 P. 678, 78 Wash. 180, 1914 Wash. LEXIS 995, Counsel Stack Legal Research, https://law.counselstack.com/opinion/reard-v-ephrata-orchard-homes-co-wash-1914.