Stone v. Carter

48 Pa. Super. 236
Superior Court of Pennsylvania·Decided October 9, 1911·No. No. 1; Appeal, No. 106·Published·Cited by 4 cases

Opinion

Opinion by

Rice, P. J.,

The parties stipulated, in the case stated, that if the court should be of opinion that a good and marketable title in fee simple, free of all incumbrances, to an undivided one-seventh of the land described, could not be conveyed by defendant during the minority of any of the children of Mary Bailey English, judgment should be entered for plaintiff for $1,000, the amount of the down payment he had made at the execution of the contract between him and the defendant, otherwise judgment should be entered for the defendant for costs. Mary Bailey English was the daughter of Eli J. Bailey, in whom the title to this and other lands was vested at the time of his death. The will of Eli J. Bailey contained this devise: “Item Second. I give and bequeath to my daughter Mary Bailey English the Breckenridge farm on which she now lives also the Alfree farm also the Worldley farm also ten shares of stock in the People’s Nat. Bank, Pittsburg.” Then, after gifts to others, this clause occurs: “And I do hereby require and do order that the portion bequeathed my daughter Mary Bailey English be and remain for her benefit during her natural life and for the maintenance and education of her children, and after her death and the youngest child becoming twenty-one years of age they, the said children, may dispose of the said farms as they see proper, but dividing share and share alike.” Mary Bailey English died in 1905, intestate, and left seven children, the defendant being one. Two of her children were, at the date of the tender of the deed under the contract between the plaintiff and the defendant, under the age of twenty-one years. The learned judge, without de[245] ciding the question whether the defendant could convey a good title in fee simple, free of all incumbrances, during the minority of any of the children of Mary Bailey English, and expressly withholding expression of opinion upon that question, held that it was involved in such doubt as rendered the title unmarketable, and, therefore, entered judgment for the plaintiff.

It will, be observed that no questions of fact are involved, and that the question whether the defendant had a good title in fee simple, free of all incumbrances, at the time she tendered the deed, is purely one of law, depending exclusively upon the proper construction of the above-quoted provisions of the will of Eli J. Bailey. It is argued by appellant’s counsel that, this being so, it was incumbent on the court to 'determine the question of law and enter judgment for the defendant, if the question should be determined in the affirmative. In Kostenbader v. Spotts, 80 Pa. 430, the trial judge drew a distinction between an action to recover the purchase money, which is treated as governed by the same equitable principles as a bill in equity for specific performance, and an' action brought by the vendee to recover back the portion of purchase money that he has paid. He says: “But the case before us is not that of a vendor seeking to compel the vendee to accept and pay, but is the case of the vendee who, having paid a part, refused to accept and pay more, but sues to recover back what he has paid, as upon a rescinded contract. He is therefore the actor, and must show the title to have been such as he was not bound to accept. The case is not quite so strong as it would be if the vendor sought to compel acceptance and payment; he simply claims to keep what he got, but asks no more.” Does this distinction apply where the express agreement is to convey, not only a good, but a marketable title? Is it not sufficient, even in an action by the vendee to recover back the part of the purchase money he has paid, for him to show that the title is not marketable within the definition of that term as established by the decisions? [246] We do not find this precise question extensively discussed in any of the cases that have come to our notice, but the case of Herman v. Somers, 158 Pa. 424, implies an affirmative answer to it. There, the action was to recover back hand money paid on a contract under which the property was “ to be free from all liens and incumbrances,” and the hand money was “to be refunded if title should not prove good on examination of records or cannot be made good.” In affirming judgment for the plaintiff, the court said: “This is equivalent to a covenant to convey a good marketable title. In equity a marketable title is one in which there is no doubt involved, either as to matter of law or fact: Dalzell v. Crawford, 1 Parsons’ Equity Cases, 37; Nicol v. Carr, 35 Pa. 381; Swayne v. Lyon, 67 Pa. 436. In Speakman v. Forepaugh, 44 Pa. 363, it was said: ‘Every title is doubtful which invites or exposes the party holding it to litigation. If there be color of outstanding title which may prove substantial— though there is not enough in evidence to enable the chancellor to say so — a purchaser will not be held to take it and encounter the hazard of litigation.’ ” . The perti-nency of this decision to the question under consideration consists in this, that the trial judge had instructed the jury, in effect, that it was sufficient, to entitle the plaintiff to recover, to show that the title was doubtful, either in matter of law or fact, and that this instruction was held not. to be erroneous. In Holmes v. Woods, 168 Pa. 530, the action was by the vendor to recover balance of purchase money, and it was stipulated, in the case stated, that if the title was good and marketable judgment should be entered for the plaintiff for the balance claimed, but, if not, then should be entered for the defendant for the amount he had paid. Judgment for the defendant was affirmed, thus impliedly -recognizing his right, even if he were the actor, to recover back the amount he had paid, if the vendor could not convey á marketable title. And it will be noticed, upon perusal of the opinion of Justice McCollum, .that the decision was put upon the ground [247] that the title was doubtful and unmarketable, not upon the ground that it was not a good title. He says: “The questions arising upon the case stated are important and not free from difficulty. They raise such doubts respecting the title as ought to induce a prudent man to hesitate in accepting it. As was said in Nicol v. Carr, 35 Pa. 381, we do not enter into them, nor indicate any opinion how they ought to be decided, but we hold it as a very clear conviction that the defendant ought not to be compelled to pay for a title burdened by them.” So, in Srolovitz v. Margulis, 35 Pa. Superior Ct. 252, a judgment in favor of the plaintiff, in an action to recover back the hand money, was affirmed upon the principle thus stated: “A vendee of real estate, who was entitled under his contract to receive a marketable title, is under no obligation to take a title which, even if it might be finally determined to be good, is in a condition to involve him in litigation to establish or secure it.” Other precedents need not be sought, for it seems clear, upon principle, that if the vendor has covenanted to convey a marketable title, and when the time arrives for carrying out his agreement he is unable to do so, the vendee has a right to rescind and recover back the portion of money he has paid. In such a case the same considerations enter into the determination of the question whether the title is marketable as in the case of an action by the vendor to recover the unpaid purchase money. See Brokaw v. Duffy, 165 N. Y. 391. The general doctrine as to the marketability of a title was clearly stated by Sharswood, J., as follows: “It has been well and wisely settled that under a contract for the sale of real estate, the vendee has the right not merely to have con

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Stone v. Carter, 48 Pa. Super. 236 (Pa. Ct. App. 1911).

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