Spencer v. Lyman

131 N.W. 802, 27 S.D. 471, 1911 S.D. LEXIS 64
CourtSouth Dakota Supreme Court
DecidedJune 6, 1911
StatusPublished
Cited by4 cases

This text of 131 N.W. 802 (Spencer v. Lyman) is published on Counsel Stack Legal Research, covering South Dakota Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Spencer v. Lyman, 131 N.W. 802, 27 S.D. 471, 1911 S.D. LEXIS 64 (S.D. 1911).

Opinions

McCOY, J.

This was an action to compel specific performance of a contract to purchase certain, coal lands, about 800 acres, situated in Weston county, state of Wyoming, dated August 27, 1907. The plaintiff, Joseph C. Spencer, at the date of said contract, was the owner of an undivided one-half interest in and to the said lands, and by the terms thereof agreed to sell and convey to the defendant, William H. Lyman, the entire title to said lands in consideration of the sum of $40,000 payable as follows: $10,000 cash upon -the delivery to defendant by plaintiff of a warranty deed of the entire title to the entire tract executed by plaintiff; to deliver to plaintiff $30,000 face value mortgage-bonds of the Galesburg & Kewanee Electric Railway Company, with the option on the part of plaintiff, after investigation, to take in lieu of said railway bonds two secured promissory notes executed by the defendant, one for $15,000 due August 27, 1908, and one other for $15,000 due August 27, 1909, both drawing interest at the rate of 6 per cent, per annum. Immediately after the execution of said contract, plaintiff delivered to defendant a warranty deed pm'porting- to convey to- defendant the full fee title to said lands, and thereupon defendant paid to plaintiff the sum of $10,000 cash, and soon thereafter defendant went into actual possession of said land, and has ever since remained in the actual possession thereof. The said contract, among its other provisions, contained the following: “Whereas an undivided one-half of the said property is owned by Sir George Allen and brother of England, who have agreed to sell the said property for the price per acre herein contemplated and have authorized the said Spencer to sell and dispose of the same; and whereas there is an outstanding undivided 20 acres of said property owned by one Ann P. Kilbourne; and whereas the said party of the first part is selling the entire prop- . erty herein described to the party of the second part and is executing and delivering warranty deed to the party of the second part [475]*475therefor; and, therefore, it is agreed that the said Joseph C. Spencer shall proceed diligently to obtain complete title to' said undivided 20 acres, and to the undivided one-half interest in the entire property owned by said Sir George Allen -and brother, and that upon his obtaining good and sufficient title to' the said outstanding interest the said William H. Lyman will further complete the payment of the purchase price for said property according to the said terms of the said contract.” After investigation,, plaintiff elected to take the notes of defendant representing said deferred payments instead of said railway bonds, and duly notified defendant of said election, and upon defendant’s refusal to pay the first of the said $15,000 payments, due August 27, 1908, plaintiff instituted this action to recover the said first payment of $15,-000, and also to compel defendant to specifically perform by executing and delivering the second note for $15,000 due August 27, 1909, and demanded that, in case judgment was rendered after the time of the maturity of the second payment, plaintiff be awarded judgment in the sum of $30,000 and interest. The trial resulted in findings and judgment in favor of plaintiff for the recovery of a money judgment for $30,000 and interest. Motion for new trial was made and denied, and defendant has brought the case to this court by appeal, questioning the sufficiency of the evidence to sustain the findings and judgment, and also alleging error in the rulings of the court in the reception and rejection of testimony.

Appellant presents two general questions for review, by virtue of which he contends that the evidence is insufficient to justify the findings and judgment: (1) Plaintiff’s lack of diligence in acquiring the outstanding titles -to said property; (2) that the titles furnished are defective, and not good within the meaning of the-terms of said contract.

[1] Appellant, as we think, correctly contends that the diligent proceedings to acquire such outstanding titles and the acquiring of good and suficient titles were matters precedent under the terms of said contract on the part of plaintiff before he would be entitled to recover the balance of said purchase price.

[476]*476[2] It appears from the evidence, and seems to be conpeded by appellant, that plaintiff very soon after the making of said contract and during the month of September, 1907, procured a deed and sufficient title from Ann P. Kilbourne to her undivided interest in the said 20-acre tract. About 15 months after the execution of said contract, respondent claims to have procured complete title of the interest of Sir Georg'e Allen and brother of England, and respondent further claims that in the procuring of the interest of said Allens he proceeded with all due diligence under the surrounding circumstances, and consumed no more time than was reasonably necessary to procure such outstanding title. The finding of the court that respondent proceeded with due diligence in obtaining said titles is fully sustained by the evidence. From the evidence it appears that both Sir George W. Allen and brother resided in England, and that the said Allen title was held for them in trust in the name of other parties, some of whom had resided in the United States and some in Calcutta, India. It also appears that at the time of the execution of said contract, although unknown to the parties thereto, said Sir George W. Allen and some of said trustees were deceased; -that the said Allen estate situated in the United States was handled by agents with whom the plaintiff prior to the execution of said contract had transacted the business in relation to the lands mentioned in said contract. It appears that one John G. Baird, -who in his lifetime had resided in the United States, was one of the trustees of the title to said land, and at his death left surviving him two sons, one of whom resided in- Denver, Colo., and the other in Honolulu, Sandwich Islands, and that' the successor of one Turner, also a trustee of said estate, resided at Calcutta, India. It also- appears that said George W. Allen, disposed of said estate by will, and that, to procure title to said lands, it was necessary that certain probate proceedings, which consumed much time, be had both in England and the United States. We do not deem it necessary to set out in detail all the testimony appearing upon the question of diligence, but, under the circumstances as shown by the evidence, we are satisfied that respondent acted with' due diligence, and was in no manner at fault for any delays occasioned. It conclusively ap[477]*477pears from the testimony that the probate proceedings and some other of the proceedings taken in perfecting said title were at the request of and required by appellant, who had notified respondent that said titles would not be accepted until such proceedings were had. On October 23, 1908, appellant served written notice on respondent that, unless said title was completed within 10 days, appellant would rescind said contract, and thereafter appellant also served notice of rescission of said contract, apd tendered back to respondent a deed reconveying title to respondent.

[3] Appellant contends that under the authority of Keator v. Ferguson, 20 S. D. 473, 107 N. W. 678, the giving of such notice had the effect to make time of the essence of said contract so that appellant might rescind the same.

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Cite This Page — Counsel Stack

Bluebook (online)
131 N.W. 802, 27 S.D. 471, 1911 S.D. LEXIS 64, Counsel Stack Legal Research, https://law.counselstack.com/opinion/spencer-v-lyman-sd-1911.