Reed v. Zalm

57 N.W.2d 304, 336 Mich. 1, 1953 Mich. LEXIS 442
CourtMichigan Supreme Court
DecidedMarch 10, 1953
DocketDocket No. 69, Calendar No. 45,587
StatusPublished
Cited by1 cases

This text of 57 N.W.2d 304 (Reed v. Zalm) is published on Counsel Stack Legal Research, covering Michigan Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Reed v. Zalm, 57 N.W.2d 304, 336 Mich. 1, 1953 Mich. LEXIS 442 (Mich. 1953).

Opinion

Sharpe, J.

This is a suit for specific performance of an alleged oral contract for the purchase of lot 30 of Hylewood subdivision, Lansing township, Ingham county, Michigan, and for a determination of the amount due defendants as a result of such sale.

In 1940, plaintiffs, Richard W. Reed and Ruby L. Reed, his wife, were residents of the city of Lansing. Defendant, Dr. Yander Zalm, was their family physician. At this time plaintiffs had 2 children and their living conditions were not entirely satisfactory. In August, 1940, plaintiff Richard W. Reed called on Dr. Vander Zalm to pay a bill. During this visit, Dr. Vander Zalm informed Reed that he had a vacant lot on Hylewood avenue and suggested that he build a 2-car garage house for them. Reed informed Dr. Yander Zalm that he was not interested, but the next time Reed saw Dr. Yander Zalm, the doctor suggested building a 4-room house, the cost of which would be between $2,200 and $2,500, plus the cost of the lot. Further arrangements were made whereby plaintiff Reed would excavate for the basement and help with the building of the house. On February 1, 1941, the house was completed and plaintiffs moved in. Plaintiffs made regular' monthly payments of $25. In 1942, plaintiff Reed put in a cement floor in the basement. In 1943, he graded the lawn and planted shrubbery. In March or April of 1941, Dr. Yander Zalm was called to military service, and thereafter payments were made to Mrs. Yander Zalm. In May, 1945, plaintiff Reed was inducted into the military service. Thereafter, Mrs. Reed made payments to Mrs. Vander Zalm. In June, 1945, Mrs. Vander Zalm gave Mrs. Reed a paper on which payments were to be' recorded. This paper reads as follows: “Theodore P. Yander Zalm and wife to [4]*4Richard W. Reed and wife, dated June 26, 1945, consideration $3,000, interest 6 per cent.” The first entry reads: “Principal $3,000, date of payment, June 26, 1945, $25, balance at interest, $2,975.” The last entry shows: “Payment January 1, 1951, $50, balance at interest $2,774.90, interest to February 1, 1951, $13.86, amount $2,788.76.” This paper was not signed by plaintiff Reed, or defendant Dr. Vander Zalm.

When plaintiff Richard W. Reed returned from the army he continued to make the usual $25 monthly payments. In January, 1951, plaintiffs moved to Royal Oak. He later rented the property for $50 per month. On or about February 1, 1951, defendants returned the monthly check of $25 to plaintiffs and refused to accept any more payments, whereupon plaintiffs began the instant suit. It is the claim of plaintiffs that in 1940, they entered into an oral agreement with Dr. Vander Zalm, wherein Dr. Vander Zalm, the owner of a vacant lot, agreed to pay for the materials and labor in the erection of a 4-room house, with Richard W. Reed doing the excavation and such other work that he could do; that the cost of the house, not including the lot, was estimated at between $2,200 and $2,500, and that plaintiffs were to pay the sum of $25 per month until the contract price of the house was reduced in the amount of $250; that plaintiffs moved into the house and made certain improvements and repairs, the cost of which, including labor and materials exceeded the sum of $1,500; that on June 26, 1945, plaintiff Ruby L. Reed entered into an agreement with defendant Emma Vander Zalm, whereby the price of the property was fixed and determined in the amount of $3,000, payable at the rate of $25 per month; that when plaintiff Richard W. Reed and defendant Theodore P. Vander Zalm returned from the military. [5]*5service, the payments were continued until such time as defendants refused to accept them.

Plaintiffs also urge that when they received the payment sheet and payments noted thereon, it was and should be construed as a land contract with the principal amount in the sum of $3,000, payable at the rate of $25 per month, with interest at the rate of 6%. It is the claim of defendants that plaintiffs paid rent for the premises; that although there had been some discussion about a contract, none of the terms of a contract were ever agreed upon. The cause came on for trial and at its conclusion, the trial court entered a decree dismissing plaintiffs’ bill of complaint. In an opinion filed, the court stated:

“The defendant Doctor Yander Zalm testified that there was some discussion between he and plaintiff Richard Reed in 1940 about the building of the house. He testified that he furnished all of the money necessary for the erection of the house. He also testified that he told plaintiff Richard W. Reed that eventually it would be their house or that he would sell it to them. He further testified that he did not discuss with the plaintiffs the price that the house was to cost, but that he would in the future sell the house to the plaintiffs at a price to be agreed upon and that if the plaintiffs helped in the construction of the house that the cost would be lower. There is also testimony on the part of both the plaintiff Richard W. Reed and the defendant Doctor Yander Zalm that neither ever discussed the amount that was to be charged for the lot upon which the house was built. Defendant Doctor Yander Zalm testified further that it was his understanding that he and his wife would, not give a contract to the plaintiffs for the sale of the house until 10% of the cost of the house had been paid by the plaintiffs. The partial payment sheet, exhibit No 1, shows a balance of $2,788.76. He also testified that all taxes and insurance on the premises were to be paid by the plaintiffs. The proofs show [6]*6that the plaintiffs never paid any of the taxes or the insurance on the building. There were also several assessments levied on the property which were paid by the defendants. * * *
“At the trial of this cause plaintiff Richard W. Reed testified that it is his understanding that the house would cost from $2,200 to $2,500. He also stated that there was no agreement between he and the defendant as to who was to pay the taxes or keep up the insurance on the property. Plaintiff Richard "W. Reed also testified that he had never insured the house against loss by fire or in any other way. He also testified that the amount of the purchase price of the house was never established at the time that the deal was started or at any time thereafter. He also testified that he could not remember how defendant Doctor Yander Zalm said the price was to be established. The proofs do not show that any formula or agreement was entered into as to how this price was to be set and that no price was ever set on the value of the lot. The defendants also testified they never agreed -on any price that the house was to be sold to the plaintiffs. Defendant Doctor Yander Zalm testified that the parties were to decide in the future as to the price of the house and the terms of a contract that might be entered into. ■* * *
“In the instant case this court cannot find where the plaintiffs are entitled to a decree for the specific performance of the alleged contract. This court cannot find that the plaintiffs have established by clear, satisfactory and convincing proof, the terms of any agreement between the parties. At the trial of this cause there was testimony ánd exhibits introduced by the plaintiffs which would tend to show that the established price was $3,000. There is no proof in the record that the plaintiff Richard Reed ever agreed to purchase the premises at this price. On the other hand, the defendant Theodore Vander Zalm testified that he never quoted a price to the plaintiff at which the house could be purchased. He further [7]

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

Related

Calhoun County v. Blue Cross Blue Shield
824 N.W.2d 202 (Michigan Court of Appeals, 2012)

Cite This Page — Counsel Stack

Bluebook (online)
57 N.W.2d 304, 336 Mich. 1, 1953 Mich. LEXIS 442, Counsel Stack Legal Research, https://law.counselstack.com/opinion/reed-v-zalm-mich-1953.