Schultz v. Busendorf

117 Misc. 405
CourtNew York Supreme Court
DecidedDecember 15, 1921
StatusPublished
Cited by2 cases

This text of 117 Misc. 405 (Schultz v. Busendorf) is published on Counsel Stack Legal Research, covering New York Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Schultz v. Busendorf, 117 Misc. 405 (N.Y. Super. Ct. 1921).

Opinion

Wheeler, J.

Busendorf, the defendant, was the owner of a farm of some forty acres, thirty of which laid on one side of a highway and ten on the opposite side. The farm was for sale. The plaintiff came to this farm, made an observation of the place, and on the next day came again and after a further observation and examination, verbally agreed to: buy the thirty acres, and paid $50 down. Subsequently, he wished to acquire the ten additional acres, and agreed to purchase the entire property for $14,000. This price included the personal property on the farm, saving and excepting certain specified things which the defendant was to retain.

The plaintiff at once moved upon and took possession of the farm. He expressed a wish, however, to have the contract of purchase put in writing, and had a contract drawn for execution, by a notary public, which was presented to the defendant for his signature. The defendant refused to sign until some modifications in the contract were made, relating to the personal property. It was then, and on or about the seventeenth of June, signed by both parties. This contract by its express terms provided that: “ The above described property is being sold subject to all leases against the property with the Iroquois Natural Gas Go.”

The evidence shows that in 1910 Busendorf had conveyed to the United Natural Gas Company of Oil City, Penn., a right of way to lay, maintain and operate a pipe line for the transportation of oil or gas over the farm in question, which right of way was subsequently transferred to and is now owned by the Iroquois Natural Gas Company. A pipe line or main eighteen or twenty inches in diameter was' actually laid across the farm, and at the time of the contract in question was being operated. In addition to this line, [408]*408the Iroquois Natural Gras Company had sunk a gas well on the property which produced gas, some of which was piped to the Busendorf house for domestic purposes, and which, by arrangement, Busendorf had the right to consume without charge to him.

Schultz paid the defendant $2,000 on account of the purchase price of the property, and has paid nothing further.

After the making of the contract and the plaintiff’s taking possession, there was delay in closing the deal. A search was furnished by the defendant, and finally the title was rejected by the plaintiff on the alleged ground that the right of way above referred to rendered the title bad. Thereupon a deed was tendered, and a demand made on the plaintiff for a fulfillment of the contract, which he declined, for the reason stated. Thereupon the plaintiff began this action to recover the $2,000 paid, and also to recover certain amounts he claimed to have expended on the property over and above sums received from produce sold.

The defendant in his answer put in issue certain allegations of the complaint, and prays for a specific performance of the contract.

The principal contest on the trial arose over the question whether the defendant tendered a good and marketable title saving and excepting “ all leases noio against the property with the Iroquois Natural Gas Co.”

The plaintiff contends that the right of way for the gas main did not come within the exception of “leases,” and therefore the defendant could not convey a good title to the premises, and that plaintiff is, therefore" justified in his refusal to carry out the contract.

The defendant contends that the plaintiff before [409]*409making the contract was fully informed of the existence of the pipe line across the farm, knew all about it, and that the term “ leases ” used in the contract was intended to describe and cover such right of way, and to provide the plaintiff should take title subject to it.

On the other hand, the plaintiff contended on the trial that he was ignorant of the existence of the pipe line or the grant, and did not know of it until after the contract had been signed, and his attention called to it by the attorney who examined the title for him.

The court, however, is convinced by the evidence that the plaintiff did in fact know about the pipe line; that he was told of it by the defendant; that it was pointed out to him, and he was shown where it ran. The evidence satisfies the court that in conversations with others after the contract was made, he showed he knew of the pipe line laid across the farm, and made no objection to it, and stated to the attorney for the defendant, referring to the well and line (which gave his house a full supply of gas) that those were “ the only things * * * that made him buy the farm.” This was said in connection with the statement that he had paid too much for the farm, and when he evinced a dissatisfaction with his bargain.

We think the contract itself indicates a knowledge of the existence of the right of way for a pipe line. It will be noted that in the contract the word " leases ” is' used — the plural of the word is employed — indicating the existence of more than one lease. The only other lease, if it may be so termed, which existed was that of the gas well on the ten-acre parcel on the opposite side of the highway. So it is fair to presume that the word “ leases ” was intended to describe the well and the right of way, both held an,¡¡l owned by [410]*410the Iroquois Natural Gas Company; otherwise the word used would be meaningless, as it could refer to nothing else. We are satisfied, therefore, that when the word “ leases ” was written into the contract, it was intended to describe the very right of way to which objection is now made. The word employed was, it is true, a misnomer, for a grant of a right of way is not, strictly speaking, a lease. We must not, however forget that the contract was not drawn by a lawyer, but by a layman, whose use of legal terms is not so precise and exact as by a member of the legal profession. We can well understand how one not a lawyer might well describe such a grant as a lease, although technically incorrect.

We then come to the question whether a misdescription by name of a thing intended to be described by parties to a contract will justify parties in insisting on the precise and technical meaning of the words. We think not, where the intent is plain as shown by the surrounding facts and circumstances, and that parol evidence may be resorted to for the purpose of ascertaining the real meaning of the term used.

There is this further consideration. This is an 'equity action, in which equitable relief is asked. It is tried as such. If the contract, in law and in fact, fails to express the real agreement of the parties, and a proper case is made, then the defendant has an equitable right to have the instrument reformed so that it will express that agreement. It is true, the defendant has not asked for a reformation in his answer, but a court of equity in administering justice affords such relief as the facts warrant, and if it be necessary to reform the contract, has the power, as it is its duty to do. Russell Hardware & Imp. Mfg. Co. [411]*411v. Utica Drop Forge & Tool Co., 195 N. Y. 54; Jewett v. Maytham, 64 Misc. Rep. 488.

The contract was prepared, not by the defendant, but by the direction of the plaintiff, and should express the real agreement and understanding of the parties to it as orally agreed on before it was drafted.

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Bluebook (online)
117 Misc. 405, Counsel Stack Legal Research, https://law.counselstack.com/opinion/schultz-v-busendorf-nysupct-1921.