Storrow v. Concord Club of Washington

70 F.2d 852, 63 App. D.C. 190, 1934 U.S. App. LEXIS 4337
CourtCourt of Appeals for the D.C. Circuit
DecidedApril 23, 1934
DocketNo. 6102
StatusPublished
Cited by1 cases

This text of 70 F.2d 852 (Storrow v. Concord Club of Washington) is published on Counsel Stack Legal Research, covering Court of Appeals for the D.C. Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Storrow v. Concord Club of Washington, 70 F.2d 852, 63 App. D.C. 190, 1934 U.S. App. LEXIS 4337 (D.C. Cir. 1934).

Opinion

VAN ORSDEL, Associate Justice.

This is an appeal from a decree of the Supreme Court of the District of Columbia dismissing a bill for the specific performance of an alleged contract for the sale of real estate.

Appellant, plaintiff below, a resident of the state of California, in November, 1931, was the owner of certain real estate known as Improved Premises No. 1832 Eye Street, N. W., in the city of Washington. The care and management of this property was intrusted to John W_ Calvert, a lawyer and an officer of the National Savings & Trust Company. The defendant is a social and literary club, incorporated under the laws of the District of Columbia. Its business is conducted through a committee on ways and means.

The negotiations were instituted by Mr. Kraft, a real estate broker in Washington, who undertook to effect a sale to the defendant club. Negotiations were conducted by Kraft with plaintiff’s agent Calvert, and with the committee and officers of the defendant. It appears to have been agreed upon by the members of the committee on ways and means, who had inspected the premises, that $22,000 would be a fair price for the property. After an exchange of telegrams between plaintiff’s agent and his principal, plaintiff agreed to sell the property for that price.

Both Kraft and plaintiff’s agent insisted upon a contract being signed by both parties, and a contract was prepared by Kraft, but the defendant’s committee refused to sign any agreement whatever, and gave as a reason that due to some litigation then pending between the club and some of its members, or former members, they felt that, if such a contract was made, and it became known, other members of the club might file a suit to enjoin the performance of the contract. When the refusal of defendant’s representatives to sign the contract was made known to the plaintiff’s agent, Calvert, he wrote Kraft that he reserved the right to withdraw his contract at any time, in which event plaintiff would not be responsible to Kraft for any commission.

Kraft then, on his own responsibility, directed the District Title Company to search the title. The title company prepared a deed of the property from plaintiff to defendant. This deed was sent by Calvert to plaintiff in California, where it was executed and returned. Calvert delivered the deed to the title company, with instructions for the distribution of the proceeds of the sale.

At the instance of defendant’s attorney, Mr. Fennell, the directors of the club held a special meeting on February 2, 1932, and passed the following resolution: “Resolved, That the Concord Club of Washington, D. C., buy a tract of land in the District of Columbia, described as lot 809, in square’105, together with the improvements thereon, the same being known and designated at 1832 Eye Street NW., Washington, D. C., for the use of the Concord Club of Washington, D. C., as a clubhouse at and for the price of $22,000, payable in cash at the time of settlement. And be it further resolved, that the president be authorized to have cashiers’ cheeks drawn on the Union Trust Company and the District National Bank in amounts sufficient to pay the purchase price of said property as heretofore stated, and the further amounts due as shown by the settlement sheet of the District Title Insurance Company, dated February 3, 1932, and pay and deliver said cheeks in full settlement of said purchase.”

The cheeks were issued and held by an officer of the defendant club for delivery, when upon examination of the title it appeared that a prior sales contract had been recorded against the property. Upon the advice of the attorney for defendant company, to the effect that the title was defective, the delivery of the checks was withheld. Later, Calvert secured, on behalf of the plaintiff, a release of this contract, which cleared the record. This release was placed on record [854]*854February 17,1932. It was then arranged between the agents of the parties to pay all the purchase price on February 19th and close up the transaction. Counsel for the defendant club appeared at the title company On that date, made a further examination of the papers, and said that the transaction would be closed as soon as he could verify certain information regarding taxes and insurance. The club later refused to settle, and, when demapd was made upon it to perform, it repudiated the entire transaction.

It appears that early in the negotiations a key was furnished to the ways and means committee of the club for the purpose of inspecting the premises, and this key was held by the committee pending these transactions. During this period, the officers .of the club spent about $12 in repairing the roof, to prevent damage to the property, and $25 for an architect to plan alterations. Upon these facts, it is urged that there was a contract between the plaintiff! and the defendant club which is enforceable, and without the limitations of the statute of frauds.

Plaintiff, in his bill of complaint, alleges that a contract was entered into on December 15th. This averment is based upon what is termed an offer and acceptance, the offer being in the form of a telegram to the plaintiff from Calvert, his agent; and an acceptance of this offer by the plaintiff in a reply telegram. This simply amounted to an exchange of telegrams between the appellant and his agent, and could not constitute a binding contract, as against defendant club. Nor can this be held to have been regarded by Calvert as amounting to a contract between the plaintiff and defendant. Calvert, in a letter to Kraft, dated December 31, 1931, states: “It is understood that as you have not submitted any contract in writing, or put up any money, that until the same is done, that I or Mr. Storrow retain the right to sell the property to any other purchaser without being liable for any commission or other damages.”

The issue to be determined in this ease is not whether defendant intended to purchase the property or whether the plaintiff and his agents thought that defendant would purchase this property. The question is whether defendant agreed to purchase the property, thereby creating a binding obligation upon its part to purchase the same. The question of what the club might have done had it not found another contract of sale on record, casting, as it believed,.a cloud upon the title, in the absence of a binding promise to purchase, is not material.

It clearly appears, we think, that there was an intention on the part of the defendant club to purchase the property in question. Indeed, it was conceded by defendant that the $12 expended in repairing the roof and an expenditure of $25 for the service of an architect to plan alterations were expenditures made in contemplation of purchase. This was followed by the resolution of the directors declaring their intention to purchase, and authorizing the issue of checks for the payment of the purchase price, sp that the intention on the part of the defendant to purchase the property may be regarded as conclusively established. It is also true that on February 2d the deed purporting to convey the property to defendant was in the possession of the title company, and that it was examined by defendant’s attorney.

The court below, in an able opinion, turned the ease upon the fact that there was nothing in the resolution of the board of directors, or in any of the communications or actions taken by the defendant, whieh indicated any knowledge on their part of the name of the plaintiff, or with whom it was dealing.

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70 F.2d 852, 63 App. D.C. 190, 1934 U.S. App. LEXIS 4337, Counsel Stack Legal Research, https://law.counselstack.com/opinion/storrow-v-concord-club-of-washington-cadc-1934.