Sterling v. Fisher

97 N.W.2d 64, 356 Mich. 634, 1959 Mich. LEXIS 413
CourtMichigan Supreme Court
DecidedJuly 13, 1959
DocketDocket 18, Calendar 47,562
StatusPublished
Cited by3 cases

This text of 97 N.W.2d 64 (Sterling v. Fisher) is published on Counsel Stack Legal Research, covering Michigan Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Sterling v. Fisher, 97 N.W.2d 64, 356 Mich. 634, 1959 Mich. LEXIS 413 (Mich. 1959).

Opinion

*635 Voelker, J.

This appeal is from the trial chancellor’s refusal to grant partial specific performance of a land contract. On November 1, 1955 the plaintiff, Mas Sterling, a building contractor, purchased 30 lots from the defendant, Alvin Fisher, a real-estate broker, on a 1-year land contract. (Mr. Fisher’s wife, Beverly Fisher, joined in the sale and is joined as a party defendant, but Alvin Fisher is the real party in interest and will be referred to in the singular.) '

After a year had elapsed and the conditions of the contract hád not been fulfilled the defendant served notice of forfeiture and subsequently began summary proceedings in the court of the circuit court commissioner. One day before that cause was to be heard by the commissioner the. appellant filed a bill of complaint in chancery praying that the proceedings before the circuit court commissioner be enjoined and that he be granted specific performance of a portion of the land contract. The chancellor denied plaintiff’s prayer for relief and he has appealed.

Appellant sets out the following as questions on appeal:

“1. Should a land contract prepared by the vendor that is ambiguous as to payment of interest on released lots and as to time in which lots can be released be strictly construed against the vendor?

“2. Was a proper tender made to secure the release of lot 329?

“3. Can there be a proper forfeiture of a land contract after tender has been made?

“4. Can plaintiff have specific performance of provisions of release clause when nothing further was paid on land contract?

“5. Is there mutuality of remedy under the land contract to enable a court to decree specific performance of the release clause?”

*636 The relevant portions of the contract in question are as follows:

“1. The seller agrees as follows: * * *

“(b) That the consideration for the sale of the above described premises to the purchaser is: $26,-511, of which the sum of $5,511 has heretofore been paid to the seller, the receipt of which is hereby acknowledged, and the balance of $21,000 is to be paid to the seller, with interest on any part thereof at any time unpaid at the rate of 6% per annum while the purchaser is not in default, and at the rate of 7% per annum when and as often as the purchaser is in default. Provided, the entire purchase money and interest shall be fully paid within 1 year from the date hereof, anything to the contrary notwithstanding. * * *

“2. The purchaser agrees as follows: * * * “(d) To pay all taxes and assessments hereafter levied on said premises before any penalty for nonpayment attaches thereto, * * *

“3. The seller and purchaser mutually agree as follows: * * *

“(k) Any declarations, notices or papers necessary or proper to terminate, accelerate or enforce this contract shall be presumed conclusively to have been served upon the purchaser if such instrument is enclosed in an envelope with postage fully prepaid, if said envelope is addressed to the purchaser at the address set forth in the heading of this contract or at the latest other address which may have been specified by the purchaser and receipted for in writing by the seller, and if said envelope is deposited in a United States post office box.

“(1) At any time within the limits of the land contract the sellers will convey by warranty deed any lot as specified by the purchaser upon payment of $700 per lot plus interest until the entire principal balance is paid.”

Turning first to the fact question, “Was a proper tender made to secure the release of lot 329 ?” The *637 undisputed facts in this case are as follows: The 1-year land contract was signed November 1, 1955. Shortly thereafter plaintiff began construction of a house on lot 329. That house was to be used by the defendant Alvin Fisher as a display model to help sell other houses. Plaintiff’s construction activities ceased before the house was completed and the defendant inquired several times as to why; construction had stopped. In late August or September of 1956 defendant met with the plaintiff and questioned him regarding his plans for the property* because the due date for payment of the purchase price and interest was approaching and the taxes on the property were already past due. Plaintiff refused to pay the taxes and explained that he was not progressing with construction because he had had some troubles with the veterans administration and with mortgage financing. Thereafter the defendant himself paid the overdue taxes.

There was a meeting of the parties on November 1, 1956 (the day the land contract fell due). What took place at that meeting is in dispute and will be discussed presently. On November 2, 1956 the defendant by regular mail sent a notice of forfeiture to the plaintiff (who claimed and testified that he never received any such notice), and subsequently defendant began summary proceedings before the circuit court commissioner. There was still another meeting of the parties on November 8, 1956.

The chancellor in his lucid opinion discusses the disputed facts as follows:

“Upon hearing the testimony in this case, it is clear that the plaintiff is an experienced builder, thoroughly conversant with land contracts. His demeanor on the witness stand made a distinctly poor impression. He was cunning, evasive and appeared to have a rather convenient memory. His version and that of the defendant as to what hap *638 pened on November 1, 1956 are at odds. He maintains that on November 1, 1956, he had a meeting with the defendant. That at this meeting one Beryle Walters was present. Beryle Walters was at that time and continues to be an attorney admitted to practice in this State, a fact which may be judicially noticed from the records of this court.

‘ “The plaintiff contends that on November 1, 1956, he had in his possession an ordinary cheek in the amount of $700 payable to'the defendant, and sufficient cash to pay interest and taxes due. He contends that he displayed this check and offered by it to pay the $700 called for in the release clause. He claims that he further offered to pay the interest and taxes due on this lot and insisted on receiving a conveyance of it.

“The defendant maintains that the plaintiff made no unconditional offer on November 1st to pay any amount; that he. did not on this date display the check or offer cash. The defendant’s testimony is that the plaintiff, in company with Mr. Walters, simply discussed an adjustment of the mutual affairs ;pf the plaintiff and defendant and offered to pay for 1 lot only on condition that he would be released from any obligation with respect to the rest of the lots. The defendant testified that the plaintiff offered to execute a quit-claim deed of his vendee’s interest in the remaining lots if the defendant would absolve the plaintiff of any obligation to pay for them and would deed over the 1 lot in return for the release price.

“I must note that the only testimony we have as to the events of November 1, 1956, comes from interested parties. The testimony of Mr. Walters was not offered. Although the. plaintiff .maintains Mr.

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Bluebook (online)
97 N.W.2d 64, 356 Mich. 634, 1959 Mich. LEXIS 413, Counsel Stack Legal Research, https://law.counselstack.com/opinion/sterling-v-fisher-mich-1959.