Stickney v. Haas

44 So. 2d 4, 253 Ala. 238, 1950 Ala. LEXIS 214
Supreme Court of Alabama·Decided February 2, 1950·No. 1 Div. 368·Published·Cited by 2 cases

Opinion

FOSTER, Justice.

• The question on this appeal is whether the demurrer filed by appellants to a bill for specific performance was properly overruled.

The substance of the facts alleged in the bill is that .on and prior to January 23, 1946, there was a house and lot in Mobile owned by three parties, Anna B. Stickney, Norma McAndrews and N. P. Boulet. They were all married: the sisters lived in Mobile and their brother, N. P. Boulet, lived in Memphis, Tennessee. The bill alleges that on that date the appellee, through a real estate broker, made an offer in writing to purchase said property for a cash consideration of $9500.00, which offer in writing was accepted in writing by the respondents Anna B. Stickney and Norma McAndrews, and respondent N. P. Boulet accepted the same by telegram on the 18th of January, 1946, which was several days-prior to the day when the formal offer in writing was made. The bill does not allege that the respective husbands of Anna B. Stickney and Norma McAndrews gave their written consent for their respective-wives to make the contract. The bill then-alleges that pursuant to said agreement the real estate broker prepared a deed designed to convey said property to appellee and that said deed was duly executed by Anna B. Stickney and Norma McAndrews and their respective husbands, and that the same was then forwarded by said broker to N. P. Boulet at Memphis, Tennessee, and on information and belief it is alleged that he and his wife duly executed said deed. The complaint then alleges that subsequent to the execution of the deed and prior to its delivery an altercation arose between the three respondent owners of said property as to the proposed division of the proceeds of the sale and that on finding themselves in a controversy with reference thereto they each declined to comply with the agreement to sell and have failed and refused and continue to; fail and refuse to do so. Proper allegation is made as to the offer of complainant to-[241] perform, and other allegations unnecessary to mention in view of the contentions made 'on this appeal.

The reply brief of appellants has eliminated some of the matters which have been argued in appellee’s briefs and confines the questions to a certain number of contentions made in serial form and distinctly repudiates any claim that the contract sought to be specifically performed is void under the statute of frauds, and therefore eliminates all contention with reference to the statute of frauds.

We think that in view of the conclusion which we have reached with respect to this matter it will be advisable for us to first consider the fourth of the contentions of appellants’ counsel set forth in said series above mentioned. That is stated to be that the mere execution of the deed of conveyance of real property by the owners without any delivery of such deed cannot create a binding obligation upon them to sell such property to the grantee named in said conveyance, in the absence of some valid contract to sell existing independently of such deed. We wish at this time to eliminate from consideration any question which may arise as to the sufficiency of the bill in not setting out in more detail the terms of • the proposal of complainant to purchase the property, which was in writing and which was accepted in writing by the two married women, — a copy of that contract is not set out.

No question is raised as to the failure to set out the terms of the deed which is alleged to have been executed by the two married women, their husbands and their brother and his wife. So that for this discussion, we will assume that both of those instruments are sufficient in every respect if they were sufficiently executed.

The effect of the failure to deliver the deed in consummation of an imperfect agreement for its sale has been treated principally in respect to the statute of frauds in cases which have dealt with that subject. That is upon the idea that if a contract for the sale and purchase of certain real estate is entered into without complying originally with -the statute of frauds, whether a deed subsequently executed, but not delivered, constitutes such a compliance as would make the original verbal contract enforcible by specific performance in equity.

The authorities have taken conflicting views with respect to that question arid while we do not have here exactly that question, the views manifested and discussed in those cases are pertinent to the question which we do have. The contrariety of opinion is set forth in the text of 49 Am.Jur. 692 to 695, sections 390 and 391, and in 145 A.L.R. 1024, annotating (1014) the case of Kludt v. Connett, 350 Mo. 793, 168 S.W. 1068; Clay v. Reynolds, 169 Okl. 416, 37 P.2d 244, 100 A.L.R. 196; 27 Corpus Juris 300; 37 Corpus Juris Secundum, Frauds, Statute of, § 173, p. 650.

It will be seen by a study of those authorities and the cases cited that a majority view, although it is in some instances called the minority, is in accord with our case of Jenkins v. Harrison, 66 Ala. 345. There is probably a distinction in its application when a deed executed in performance of a verbal contract to sell is placed in escrow in accordance with said contract to be delivered upon the happening of a contingency and when there is no such delivery in escrow. Some of the cases specifically refer to the fact that there was a delivery in escrow with emphasis upon it. Moore, Keppel & Co. v. Ward, 71 W.Va. 393, 76 S.E. 807, 43 L.R.A.,N.S., 390, Ann.Cas.1914C, 263; Blacknall v. Parish, 59 N.C. 70, 78 Am.Dec. 239; 100 A.L.R. 210.

The distinction is probably because of the fact that when the deed is delivered in escrow pursuant to a valid contract to that effect the grantors can only withdraw the deed upon the failure of the grantee to comply with the conditions and, therefore, it is in substance a conditional delivery. Whereas if the grantors retain possession of the deed, there cannot be said to be any sort of delivery.

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Stickney v. Haas, 44 So. 2d 4, 253 Ala. 238, 1950 Ala. LEXIS 214 (Ala. 1950).

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