Sacks v. Theodore

118 S.E. 105, 136 Va. 466, 1923 Va. LEXIS 98
CourtSupreme Court of Virginia
DecidedJune 14, 1923
StatusPublished
Cited by7 cases

This text of 118 S.E. 105 (Sacks v. Theodore) is published on Counsel Stack Legal Research, covering Supreme Court of Virginia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Sacks v. Theodore, 118 S.E. 105, 136 Va. 466, 1923 Va. LEXIS 98 (Va. 1923).

Opinion

Pbentis, J.,

delivered the opinion of the court.

The appellee, Theodore, instituted this suit in equity against J. F. Sacks and B. Forman, appellants, who had sold and conveyed certain real estate to him. [468]*468There were then outstanding certain of his unpaid purchase money notes secured by deed of trust on the property. He made James C. Reese, Jr., trustee in the deed of trust, a party defendant, and the National Bank of Hopewell intervened in the suit by petition, claiming to be the holder of such notes in due course and for value.

The allegations of the bill are substantially these: That in September, 1917, Theodore secured an option on this real estate, but that the owners refused to convey it except subject to certain leases, and that thereafter, October 8, 1917, they entered into a written contract by which they agreed to convey the property subject to the leases; the price of the property was $7,500.00, $2,000.00 in cash was paid, and the credit installments were to be evidenced by four negotiable notes for $1,375.00 each, payable in six, twelve, eighteen and twenty-four months thereafter, the vendors to execute a proper deed, and the vendee to execute his notes and a deed of trust upon the property securing them; that he executed the deed of trust and notes, except that eight notes for $687.50 each were given instead of four notes for $1,375.00 each; tbat he repeatedly thereafter demanded a deed, but the deed was not delivered to him until some time in November, 1917; that soon after obtaining the option first above mentioned he had offered to sell the land to one Palmer for $11,500.00; that when the contract of October 8th was made, he understood from Palmer that a deed subject to the two leases would be acceptable to him; that thereafter when the deed had been delivered he approached Palmer and offered to convey the property to him, but Palmer refused to accept a deed because of the delay,, and employed counsel to institute suit against him to recover for failure to deliver the prop[469]*469■erty in accordance with his contract; that he thereupon paid Palmer $1,000.00, being the amount which Palmer had previously deposited with him as a cash payment on the property, and compromised with Palmer by paying him $2,500.00 additional as damages; and that all of these losses and damages were the direct result of the •carelessness, negligence and wrongdoing of his vendors, the appellants, and their agent. He then alleges that he has paid off four of these eight notes; that Sacks and Forman hold the other four—that is, those maturing in eighteen and twenty-four months—and were threatening to direct the trustee to sell the property; and that he would be irreparably injured if the property should be thus sold. He prays for an injunction against such sale, and against any transfer of the notes, and asks for an issue out of chancery to ascertain the amount of damages he ought to recover from Sacks and Forman; that such damages be credited on the outstanding notes, or if they exceed that amount that a judgment be awarded him.

The injunction prayed for was awarded, and after-wards enlarged. The defendants demurred to the bill, and moved to dissolve the injunction. The court overruled the demurrer, refused to dissolve the injunction, and gave the defendants leave to file their answers. These answers were filed, and deny every substantial allegation of the bill, allege that the deed was promptly delivered; that no objection was raised to accepting it; and that no complaint of any nature was made until long after the transaction was closed and several of the notes had been paid.

A decree was entered directing an issue out of chancery to be tried at the bar of the court to ascertain the amount of damages, if any, sustained by the complainant, Theodore. Upon the trial of this issue the jury [470]*470found a verdict for the defendants, Sacks and Forman. Thereafter the trial court entered a decree disapproving,, setting aside and annulling the verdict of the jury, and decreeing that the complainant recover from the defendants, Sacks and Forman, $1,000.00 damages, with interest from October 8, 1917, and perpetuating the injunction against the enforcement of the deed of trust as to that amount. To that decree this appeal was-allowed.

The first assignment of error is that the court erred, in overruling the demurrer to the complainant’s bill,, and in refusing to dissolve the injunction. Among the-grounds for this motion is that the bill seeks to set off a claim for unliquidated damages, and the argument, upon the demurrer is chiefly directed to this point.

A kindred question to this has been recently considered by this court in Ewing v. Dutrow, 128 Va. 416, 104 S. E. 791, and it is not deemed necessary to reiterate* what is there said or to cite the authorities there cited..

That this bill has for its chief purpose the ascertainment and recovery of unliquidated damages is manifest, and that the claim could have been asserted in an action at law where the remedy would have been adequate is equally true.

Among the cases not cited in Ewing v. Dutrow, supra, is Robertson v. Hogshead, 3 Leigh (30 Va.) 667, 672, where Tucker, P., says this: “As the form of proceeding, then, excludes the possibility of rescission, the bill-, can only be looked on as a bill for an injunction to* restrain the payment of an unpaid balance of purchase-money, until a claim for unliquidated damages for the-alleged fraud shall have been settled by an issue to be-directed by the court. But it has been long settled-that unliquidated damages cannot be set off in equity. Duncan v. Lyon, 3 Johns. C. R. 361; Livingston v. [471]*471Livingston, 4 Id. 287; Webster v. Couch, 6 Rand. 519. The party aggrieved should have instituted the proper proceedings and ascertained his damages, before he attempted to arrest the payment of the instalment of the purchase money remaining due. Were a contrary practice allowed, an instalment of $3,000.00 might be tied up, though the damages might eventually be only as many cents, or nothing. Moreover, I take it, a bill for damages only will not lie in equity.”

This rule is repeated and applied in Rosenberger v. Keller, 33 Gratt. (74 Va.) 489. So, in Cleaver v. Matthews, 83 Va. 801, 3 S. E. 439, where a bill was filed to enjoin sale by a trustee and to obtain credit by the complainants on the balance due by them to the amount of a certain loss alleged to have been sustained by the cutting of timber on the land (not, however, by the vendor) between the time they agreed to purchase and the time the deed was delivered, a demurrer to the bill was sustained, and in this connection it is said: “The suit is not brought to obtain compensation for a deficiency in the stipulated quantity of the land, for there has been no deficiency. It is conceded that the complainants got, and are in possession of, all the land for which they contracted. So that the case is simply this: The complainants are seeking, by a suit in equity, to set off against the unpaid balance of purchase money the unliquidated damages they have sustained by reason of the trespass, or trespasses, aforesaid, which can not be done. Their remedy, if they have been injured as they claim, is at law. A suit in equity can not be changed into an action of trespass.

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Bluebook (online)
118 S.E. 105, 136 Va. 466, 1923 Va. LEXIS 98, Counsel Stack Legal Research, https://law.counselstack.com/opinion/sacks-v-theodore-va-1923.