Romer v. Leyner

277 S.W.2d 66, 224 Ark. 884, 1955 Ark. LEXIS 497
CourtSupreme Court of Arkansas
DecidedMarch 28, 1955
Docket5-606
StatusPublished
Cited by21 cases

This text of 277 S.W.2d 66 (Romer v. Leyner) is published on Counsel Stack Legal Research, covering Supreme Court of Arkansas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Romer v. Leyner, 277 S.W.2d 66, 224 Ark. 884, 1955 Ark. LEXIS 497 (Ark. 1955).

Opinion

Ward, J.

This case relates to the sale of a hotel court in Hot Springs, Arkansas, and the issues arise from two conflicting sales agreements. Also involved is the issue of damages claimed by each of the contracting vendees. Helen B. Bomer, Bomona Horwitz and Howard L. Bomer, as trustees, owned and operated the Bomer Hotel Court in Hot Springs, Arkansas. Helen B. Bomer, acting for herself and for the others mentioned above, handled all negotiations relative to this litigation and we shall hereafter refer to the owner as “Romer.” One of the contracting purchasers was Samuel L. Leyner and Romer Hotel Court, Inc. [a Delaware Corporation] and most of the negotiations relative to this case were conducted by Samuel L. Leyner, and this party we shall hereafter refer to as “Leyner.” The other contracting purchaser was a partnership composed of Irving Dexter and Arinin Miller, and we shall hereafter refer to this party as “Dexter-Miller.”

On September 4, 1953, Romer and Leyner entered into a written agreement whereby, generally, Romer offered to sell and Leyner offered to buy the Hotel Court for the price of $500,000. This writing, hereafter referred to as the “Agreement,” also provided, generally, that the purchase price was to be paid as follows: (a) $10,000 paid to Romer on execution of the Agree-' ment; (b) Leyner was to secure a $350,000 first mortgage on the Hotel Court [this was to take the place of an existing mortgage of $260,000], and the proceeds, less the existing mortgage, were to go to Romer; (c) Leyner or his assigns were to execute a note to Romer for $90,000 secured by a mortgage on the Hotel Court subject to the $350,000 mortgage, and; (d) Leyner was to pay $50,000 upon delivery of the deed. The provisions in the Agreement relating to the time allowed Leyner in which to complete the contract appear not to have been interpreted alike by Romer and Leyner. Romer appears to have been under the impression that the deal was to be consummated within 90 days from the date of the execution of the Agreement, while Leyner apparently considered that he had 90 days in which to accept the offer of sale and that the sale was to be consummated at a later fixed date. It is not necessary to set out the exact language bearing on this issue nor is it necessary for us to put our interpretation on its meaning since, as will be seen later, the question is now moot.

Regardless of Leyner’s rights under the Agreement he notified Romer a day or so before the 90 day period had expired to the effect that he was ready to complete the purchase, and negotiations to that end ensued.

We gather from the record that as the end of the option period approached and Leyner had failed to exercise his option or rights under the Agreement Romer became fearful that Leyner was not going to buy the Hotel Court and she entered negotiations to sell the property to Dexter-Miller, which resulted in a written contract dated December 7, 1953, whereby she agreed to sell and Dexter-Miller agreed to buy the Hotel Court for the price of [what amounted to] $455,500. The closing date was set by the contract for December 15, 1953. It is now admitted by Dexter-Miller that at the time this contract was entered into they knew of the Agreement which Romer had executed with Leyner.

A short time later when Leyner learned of the contract with Dexter-Miller he filed a suit in Chancery Court on December 15, 1953, against Romer and Dexter-Miller to enforce specific performance and to clear the title of the Dexter-Miller contract. On December 16, 1953, Romer wired Leyner that inasmuch as suit had been filed she expected the purchase money to be paid at once and asked him to close the deal immediately, and on the same day Romer through her attorney advised Dexter-Miller that she was willing to complete her sale to them. On December 28, 1953, which was the date set by Leyner for closing the deal with Romer, Romer executed a ratification of the September 4th Agreement. This written ratification was filed for record the following day.

Apparently all efforts to reconcile the differences between the three parties failed and Leyner, on March 4, 1954, filed an amendment to his complaint asking to be reimbursed for expenses incurred because of Romer’s alleged breach of contract, to-wit: $3,500 attorney fees to local attorneys, $2,500 attorney fees incurred since December 15, 1953, to a New Jersey attorney, and $1,-855.43 for travel, hotels and other miscellaneous expenses.

Before Leyner filed his amended complaint as mentioned above, Romer, on January 4, 1954, filed her answer, admitting the execution of the Agreement but alleging that Leyner had not complied with the terms of the Agreement within the specified time of 90 days and asked that Leyner’s complaint be dismissed.

On February 15, 1954, Dexter-Miller answered admitting the existence of the Romer-Leyner Agreement and asserting their contract with Romer dated December 7, 1953. At the same time by way of cross-complaint against Romer it was alleged that they were ready, able and willing to perform the December 7th contract but that Romer had failed and refused to perform; that they had notice of the September 4th Agreement since its recordation on December 14,1953; that they were excused from performing their contract with Romer; that they were deprived “of the unique properties which they had purchased,” and; that they were entitled to damages in the sum of $50,000. Their prayer was for a return of the $11,000 deposited with Romer and for damages in the amount of $50,000.

In the meantime Leyner had asked that a receiver be appointed and in response thereto Romer, on February 16, 1954, objected to the appointment of a receiver, alleging that Leyner had no interest in the Hotel property. Then it was that Leyner filed the amendment to his complaint mentioned above, wherein he also alleged that Romer had wrongfully kept him out of the property, that he was entitled to an accounting and that, because of the wrongful acts of Romer, he was entitled to special damages for attorney fees and expenses.

On March 5, 1954, Romer answered the cross-complaint of Dexter-Miller with a general denial and alleged that Dexter-Miller had full knowledge of the above mentioned Agreement when they entered into the contract of December 7th. By way of cross-complaint against Dexter-Miller she alleged that she had been defrauded into signing the December 7th contract and asked for damages in the amount of $50,000. To the above cross-complaint Dexter-Miller, on April 27, 1954, entered a general denial.

Decree and findings of fact. The issues above joined were submitted to the trial court on voluminous depositions and oral testimony and the court, on May 12, 1954, rendered its decree and, in response to a request by Leyner, made a detailed finding of facts. Each separate finding of the trial court will be set out below together with our separate conclusions thereon.

1. Specific performance. Leyner was decreed specific performance against Romer pursuant to the Agreement entered into on September 4, 1953, specifying the manner in which payments should be made by Leyner. It is unnecessary to discuss the testimony and arguments relating to this issue for the reason that Romer on June 9, 1954, tendered a performance of the court’s decree, aud Romer has not prosecuted an appeal from this part of the decree.

2. Dexter-Miller.

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Cite This Page — Counsel Stack

Bluebook (online)
277 S.W.2d 66, 224 Ark. 884, 1955 Ark. LEXIS 497, Counsel Stack Legal Research, https://law.counselstack.com/opinion/romer-v-leyner-ark-1955.