Slimmer v. Martin

172 N.W. 829, 42 N.D. 255, 1919 N.D. LEXIS 148
North Dakota Supreme Court·Decided April 29, 1919·Published

Opinions

Bikdzell, J.

This is an appeal from a judgment in a vendor’s action for specific performance. The specification is for a trial de novo. The appellants, however, insisted upon a jury trial in the court below,- and upon this appeal they also rely upon the ruling of the trial court denying it as an error vitiating the judgment.

The action was commenced by the service of a summons on December-8, 1913, and the complaint was filed in the office of the clerk of the district court of Divide county, January 23, 1914. The trial took place on September 18, 1916. Findings and conclusions, order for [257]*257judgment, and judgment, were filed on December 7, 1917. Tbe record on appeal to this court was filed on April 30, 1918.

In the comAaint, relief is prayed for as follows:

“(1) That tbe amount agreed by tbe defendant to be paid for said land and tbe whole thereof, with interest according to tbe terms of tbe said contract, and tbe amount of tbe taxes paid on said premises by tbe plaintiffs, be ascertained by tbe court, or under its direction, and that tbe plaintiff have judgment against tbe defendant for tbe amount so ascertained,' together with their costs and disbursements herein;”
“(2) That by tbe decree and judgment of this court herein,- tbe premises hereinbefore and in said contract described be sold to satisfy tbe amount of such judgment, together with tbe costs and expenses of -such sale; ”
“(3) That tbe defendant be foreclosed of all right, title, interest, and estate in and to said premises, and tbe whole thereof, except tbe right of redemption thereof from such sale within such time as may be by tbe decree of tbe court fixed, for that purpose; ”
“(4) That if tbe proceeds of such sale are insufficient to satisfy tbe judgment herein, together with tbe expenses of such sale, that tbe plaintiff have execution against tbe defendant for any deficiency remaining after applying thereto tbe proceeds of such sale; ”
“(5) That tbe plaintiffs have such other and further relief as to tbe court may seem just and equitable.”

Tbe first contention of tbe appellant is that tbe action should-have been considered an action at law, and that the defendant was consequently entitled to a jury, trial. It is clear .from a reading of tbe complaint that it purported to state a cause of action cognizable in equity. The contract, however, was set forth in full in tbe complaint and made a part thereof; so that if, under all tbe allegations, tbe complaint states a cause of action triable to a jury, it should have been so tried. It provided for tbe payment of tbe purchase price ($11,000) by tbe giving of a promissory note bearing 8 per cent interest per annum from March 1, 1909, payable as thereinafter stated. The terms of payment were expressed .as follows: “$1,000 on tbe principal and all accrued interest on November 1, 1909, and $1,000 and accrued interest on tbe first day of November of each and every year thereafter, until entire purchase price and accrued interest has been paid.” Tbe contract [258]*258also embraced other obligations of the purchaser, such as the obligation, to break the land, deliver the crops, pay taxes, and to secure the annual payments by mortgage on the crops, though the ownership of the same is reserved in the vendor. There is no acceleration clause under which the whole amount of deferred instalments might be declared to be due on the failure of the purchaser to fully perform with respect to a single instalment, or in case of other default. It is provided, however, that in case the purchaser shall fail to perform punctually “all and each of the stipulations of this contract, . . . then the party of the first part shall have the right to declare this contract null and void, and on such declaration all right and interest thereby created . . . shall utterly cease and all payments made or improvements placed upon said premises shall remain in and belong to the party of the first-part as rent for the said premises.” It is further provided that upon cancelation the party of the first part shall cancel and surrender the purchase-price note.

It is apparent that, at the time the action was brought, the time had not arrived for the delivery of the deed; and that but five of the eleven annual instalments ($1,000 each) of the purchase price were-due. From this it follows that the plaintiff could have secured a money judgment for the instalments due by bringing an action at law for the-unpaid instalments. Shelly v. Mikkelson, 5 N. D. 22-27, 63 N. W. 210. But, as held in the case cited, such an action is essentially an equitable proceeding for specific performance. See also to this effect Beecher v. Conradt, 13 N. Y. 1008, 64 Am. Dec. 535, where it was held that independent promises to pay instalments of the purchase-price become dependent upon the tender of the deed when the time has arrived for the transfer to be made. See also 39 Cyc. p. 1900. In other jurisdictions, however, it is held that an action for the purchase price, under instalment contracts, may he maintained independently of any equitable considerations governing the remedy of specific performance. See Gray v. Meek, 199 Ill. 136, 64 N. E. 1020; 39 Cyc. supra; 36 Cyc. 565. We are convinced that both the better reason and the weight of authority support the proposition that, since an action by the vendor to recover the price is not essentially an action to recover damages as compensation, it should be controlled by equitable considerations. 29 Am. & Eng. Enc. Law, 720. [259]*259Since the action mnst be regarded as primarily one in equity to obtain specific performance, it presents a somewhat novel feature. It attempts to secure specific performance of a contract before the time has arrived for the delivery of the deed by the vendor or the full payment of the purchase price by the vendee. The query arises whether, in the proper exercise of equity jurisdiction, a court can decree the specific performance of a contract which is broken in reality as to some of its provisions, and which is broken only in anticipation as to the remainder. Does the doctrine, in short, of anticipatory breach of contract, as announced in the leading case of Hochster v. De la Tour, 2 El. & Bl. 678, 118 Eng. Reprint, 922, 22 L. J. Q. B. N. S. 455, 17 Jur. 972, 1 Week. Rep. 469, 6 Eng. Rul. Cas. 576, extend to the remedy by way of specific performance ? Since the case of Stanford v. McGill, 6 N. D. 436, 38 L.R.A. 760, 72 N. W. 938, was overruled (Hart-Parr Co. v. Finley, 31 N. D. 130, L.R.A.1915E, 851, 153 N. W. 137, Ann. Cas. 1917E, 706), it has been the law of this jurisdiction that, upon the repudiation of a contract in advance of the time for performance, the opposite party may treat the contract as broken for the purpose of maintaining an action to recover damages for its breach. The doctrine of Hochster v. De la Tour, supra, is thus the law of this jurisdiction applicable to all contracts except, probably, negotiable instruments. See Roehm v. Horst, 178 U. S. 1, 44 L. ed. 953, 20 Sup. Ct. Rep. 780. In applying the remedy of specific performance, however,, before the time for performance has arrived, there are inherent practical difficulties that are not present in the same degree where it is sought merely to recover damages.

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Slimmer v. Martin, 172 N.W. 829, 42 N.D. 255, 1919 N.D. LEXIS 148 (N.D. 1919).

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