Shirley v. Lake Butler Corporation

123 So. 2d 267
CourtDistrict Court of Appeal of Florida
DecidedAugust 24, 1960
Docket1629
StatusPublished
Cited by8 cases

This text of 123 So. 2d 267 (Shirley v. Lake Butler Corporation) is published on Counsel Stack Legal Research, covering District Court of Appeal of Florida primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Shirley v. Lake Butler Corporation, 123 So. 2d 267 (Fla. Ct. App. 1960).

Opinion

123 So.2d 267 (1960)

Walter T. SHIRLEY, Appellant,
v.
LAKE BUTLER CORPORATION, A.B.E. Options, Inc., Twenty-Two Thirty-Six Corporation and Prudential Land Company, corporations, Appellees.

No. 1629.

District Court of Appeal of Florida. Second District.

August 24, 1960.
Rehearing Denied October 3, 1960.

*268 Steed, Steed & Urban, Orlando, for appellant.

James G. Pace, Miami, and Warren H. Edwards, Orlando, for Lake Butler Corp.

Hansford D. Tyler, Jr., Miami, for Twenty-Two Thirty-Six Corporation.

Maguire, Voorhis & Wells, Orlando, for A.B.E. Options, Inc., and Prudential Land Co.

BARNS, PAUL D., Associate Judge.

Appellant-plaintiff brought suit against appellees seeking a decree for the specific performance of a contract to sell land. After the close of all pleadings and after the time for taking testimony had expired, one of the appellees moved for a summary decree and another moved for a judgment on the pleadings (bill and answer). The summary decree motion was granted and the complaint dismissed as to all defendants. Thereupon plaintiff appealed. We affirm the decree denying specific performance, but remand for further proceedings.

Statement of the Case

For purposes of brevity, the persons and corporations involved in the lower court litigation will be referred to as follows: Walter T. Shirley as "Shirley"; Frederick H. Kury as "Kury"; The Lake Butler Corporation as "Lake Bulter"; A.B.E. Options, Inc. as "A.B.E.".

On April 17, 1956, prior to the date of the contract sued upon, one Kury procured a 10-day option to purchase some 4,000 acres of land from Lake Butler and A.B.E. for some $240,000. Kury was the agent of Kelley E. George for such purpose. The consideration for the option was $1,000 furnished by George. Upon procurement of the option Kury promptly assigned it to George.

On April 23, 1956 when George was about to exercise the option a novation occurred between the vendors and the vendee George, as a result of which the vendors agreed to sell to the vendee George some 5,800 acres for an amount in excess of $400,000, with $40,000 being paid as a down payment. This contract superseded the option.

On the day of the execution of the foregoing contract George entered into a contract with appellant Shirley for the sale to him of the 5,800 acres at a sale price in excess of $1,000,000 Shirley making a down payment of $40,000 which fund was used by George for his down payment to Lake Butler and A.B.E. on the $400,000 contract.

Kury was a broker acting only as the agent of Lake Butler and A.B.E., except when he acted for George in procuring the original 10-day option; and the contract to George as vendee provided for the payment to Kury of a 10% commission by the vendors at time of closing.

*269 The vendors delivered abstracts to most of the land to Kury on April 23, 1956, and Kury delivered them to the abstract company on April 26, 1956. They were completed for delivery September 3, 1956. The abstracts were never delivered to George or Shirley.

The inability to get the abstracts continued to date stagnated all progress toward closing. On July 7, 1956, A.B.E. notified George that it was terminating their contract and Lake Butler notified George it was terminating the contract as of August 14, 1956. Both letters of cancellation referred to the terms of the option specifying that Kury, the optionee, was to bring the abstracts to date in event of its exercise. Both letters referred to the expiration of the 60 days time for closing and the non-payment of the 29% of the purchase price.

Litigation between Shirley and George ensued which was settled on August 7, 1957 by George assigning to Shirley his $400,000 contract whereupon Shirley instituted this action for specific performance on the assigned contract, which suit was brought more than a year after it had been repudiated by Lake Butler and A.B.E.

One, if not the principal point in controversy, is over the delivery of the abstracts. The option to Kury provided in event of the exercise of the option, in reference to the closing agreement, that:

"The said agreement shall provide the furnishing of abstracts to the property not up to date to be brought down to date at the expense of the above corporations, by Frederick H. Kury, and shall provide for the closing of the said transaction within thirty (30) days of the delivery of the said abstracts.
* * * * * *
"The abstracts, when brought down to date, shall show a good and marketable title, but in the event shall not be found good and marketable, the seller agrees to use reasonable diligence to make the said title good and marketable, and shall have a reasonable time to do so; and if, after reasonable diligence on their part, the said title shall not be found good and marketable within a reasonable time, the purchaser shall have the following options, which shall be made in writing at the time objections are made to the said title:
"1. The seller is to return the Twenty-four thousand, six hundred and nintey-three and 36/100 Dollars ($24,693.36) upon surrender of said contract.
"2. At the request of the purchaser they shall deliver the title in its existing condition.
"3. He shall have the option to reject the title to any portion of the property lying contiguous not to exceed five per cent (5%) of the total acreage, and the price shall be reduced accordingly."

The novated contract for the sale of the 5,800 acres between Lake Butler and A.B.E. as vendors and George as vendee did not contain the clause of the option first above quoted relating to the abstracts to be delivered "not up to date" and "to be brought down to date" at the expense of the vendors "by Frederick H. Kury," but provided:

"It is agreed that this transaction shall be closed, and the purchasers shall pay the balance of the 29% and execute all necessary papers within sixty (60) days from delivery or tender to him of an abstract covering said property, otherwise the sum paid this day shall be retained by the seller as liquidated damages."
* * * * * *
"The seller is to furnish an abstract showing his title to be good and marketable and/or insurable, but in the event that the title shall not be found good and marketable, the seller agrees to use reasonable diligence to make the *270 said title good and marketable and shall have a reasonable time to do so, and if after reasonable diligence on his part said title shall not be made good and marketable within a reasonable time, the seller shall return the money this day paid and all moneys that may have been paid to him under this contract, and thereupon he shall be released from all obligations hereunder. Or, upon request of the purchaser, he shall deliver the title in its existing condition.
"Provided, however, that if five per cent (5%) or less of the property shall not meet title requirements the purchaser shall take "as is" or exclude such per cent as is not acceptable as to title and the price shall be adjusted accordingly, and this agreement shall not be otherwise effected."

Conclusion

The plaintiff — appellant Shirley, the assignee of George, took the contract subject to all defenses available against George and his rights are no greater than were the rights of George. One must be active in the assertion of a claim for specific performance of a contract for the sale of land. Hathcock v.

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

Related

Degirmenci v. Sapphire-Fort Lauderdale, Lllp
693 F. Supp. 2d 1325 (S.D. Florida, 2010)
Federal Deposit Insurance v. Cherry, Bekaert & Holland
742 F. Supp. 612 (M.D. Florida, 1990)
Hembree v. Bradley
528 So. 2d 116 (District Court of Appeal of Florida, 1988)
Casas v. Rosell
359 So. 2d 491 (District Court of Appeal of Florida, 1978)
Freund v. Gross
345 So. 2d 1097 (District Court of Appeal of Florida, 1977)
Rains v. Rains
220 So. 2d 386 (District Court of Appeal of Florida, 1969)
BUILDERS FIN. CO. INC. v. Ridgewood Homesites, Inc.
157 So. 2d 551 (District Court of Appeal of Florida, 1963)
Buck v. McNab
139 So. 2d 734 (District Court of Appeal of Florida, 1962)

Cite This Page — Counsel Stack

Bluebook (online)
123 So. 2d 267, Counsel Stack Legal Research, https://law.counselstack.com/opinion/shirley-v-lake-butler-corporation-fladistctapp-1960.