Shriver v. Cook

127 N.W.2d 102, 256 Iowa 271, 1964 Iowa Sup. LEXIS 760
CourtSupreme Court of Iowa
DecidedMarch 10, 1964
Docket51277
StatusPublished
Cited by3 cases

This text of 127 N.W.2d 102 (Shriver v. Cook) is published on Counsel Stack Legal Research, covering Supreme Court of Iowa primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Shriver v. Cook, 127 N.W.2d 102, 256 Iowa 271, 1964 Iowa Sup. LEXIS 760 (iowa 1964).

Opinion

ThompsoN, J.

A contract to make a contract is a contract. Some misunderstanding of or disagreement with this principle by the defendants brought about the present litigation.

*273 The plaintiffs in the action before us are husband and wife, as are the defendants. The questions involved are largely concerned with the applicable law. There is not much dispute in the material facts, as we view the case, although it is true different inferences might be drawn from some of them. However, these inferences were resolved by the jury in favor of the plaintiffs, and we are therefore concerned with the factual situation only as it bears upon the legal propositions presented.

The case as made by the plaintiffs’ petition* which is in two counts, is this: On or about September 1, 1961, they entered into an oral agreement with the defendants to purchase, remodel and furnish a building and operate therein a supper club in Montezuma. The defendants were to furnish funds for the purchase of the property and for the expense of remodeling and furnishing. Plaintiffs were to assist in the work of remodeling and preparing the building for its intended use, and when the business of operating the supper club was under way they were to operate the kitchen and assist in maintaining the place. When the business operation commenced they were to be paid $375 per month for their services, plus living quarters, food and laundry. It was also pleaded that when the expense of purchasing the building, remodeling and furnishing had been repaid to the defendants from the operation of the business, the plaintiffs were to become the owners of one half of the real estate and of the business.

A further allegation, which is of prime importance in the case, is that “said agreement was to be reduced to writing upon the commencement of the operation of the supper club.” It is further alleged that plaintiffs fully performed the agreement and upon the opening of the supper club for business on December 9, 1961, they requested the defendants to execute the written agreement, but the defendants refused so to do, and that defendants committed acts which made it impossible for plaintiffs to perforin the contract. The petition, in Count I, then claims damages for the reasonable value of the services of each of the plaintiffs in remodeling the building and preparing for the opening of the eating place, from September 15 to December 9, 1961.

*274 Count II contains similar allegations as to the contract and its breach, and asks as damages compensation for the services of the plaintiffs’ minor son, William Shriver, during the same period. It is claimed in this count that the defendants, as a part of the oral contract, agreed to employ William Shriver after the opening of the club at a salary of $85 per week, plus room, board and laundry but their breach made it impossible to carry out the contract as to William Shriver also, and plaintiffs are entitled to compensation for his services in remodeling and preparation for opening the club.

The defendants answered, denying generally, and filed a counterclaim. Judgment for defendants was entered on the counterclaim by direction of the court, and no appeal is taken from this by the plaintiffs.

The defendants moved for a peremptory verdict on plaintiffs’ claims at the close of the plaintiffs’ evidence and again at the close of the entire case. These motions were denied, the matter was submitted to a jury, and verdicts in favor of the plaintiffs were returned on each count of their petition. Thereupon the defendants filed their motion for judgment notwithstanding verdict. The trial court granted this motion, set aside the judgments for the plaintiffs which had been entered on the verdicts, and entered judgment for the defendants on each count of the petition. It is from this ruling and the judgment entered thereon that the plaintiffs now appeal.

I. The eating place had been in operation for a short time only when the previous harmonious relations between the parties ended in discord. The plaintiffs ceased to render services on January 25, 1962, and moved from their living quarters in the building on February 4 next. They contend this was because of certain breaches of the oral contract bjr the defendants which justified them in refusing to further perform. This brings up the first question for consideration: were there such breaches, or any breach, which excused plaintiffs’ termination of the contract f

While the plaintiffs attempted to prove certain interferences with and criticisms of their work by defendant Mary Cook, we need not decide the sufficiency of these to effectuate a breach *275 by the defendants. It is to be remembered that one part of the oral contract, as pleaded by the plaintiffs and shown by their evidence, was that when the remodeling of the building had been completed and the club commenced operation, the contract would be reduced to writing. That is, the oral contract provided for a written contract. This was a material and important part of the agreement. We must assume the jury found with the plaintiffs as to proof of the contract at this point. The plaintiffs were to become the owners of a one-half interest in the business when the costs of the remodeling and preparations for operation had been repaid to the defendants from the operation of the business. These costs were substantial, and without doubt it would require a profitable operation over a considerable period of time to return them. The plaintiffs had bargained for a written contract to protect them during this period; and this was important to them. The value of a written agreement instead of an oral one in any transaction is too apparent to need elaboration. An oral contract may be denied, or evaded, or misconstrued, or forgotten in toto or in some substantial part; when it is reduced to writing it speaks in terms that cannot be refuted.

But defendant L. W. Cook, although admitting the agreement for a written contract substantially as the plaintiffs claimed, testified that he had refused to perform it. He said: “I told Jeannette Shriver I was not going to make any written agreement. Later the same night I told Harold Shriver I wouldn’t make any written agreement at that time. He asked me a time or two after that. I wasn’t in any hurry to make an agreement. We hadn’t had the Party House paid off yet. In my deposition I testified that the written agreement was to be entered into when the supper club began operating. That was the agreement. I didn’t renege on the contract I just reneged on the time.”

The distinction between “reneging” on the contract and on one of its most important parts, as drawn by the defendants, does not appeal to us. The plaintiffs were justified in refusing to go further with their performance, under Doctor Cook’s ovm testimony.

II. We come then to the decisive question in the case, which in effect is whether the plaintiffs were entitled to sue *276 for tbe measure of damages they asked.

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Bluebook (online)
127 N.W.2d 102, 256 Iowa 271, 1964 Iowa Sup. LEXIS 760, Counsel Stack Legal Research, https://law.counselstack.com/opinion/shriver-v-cook-iowa-1964.