Thompson v. Lincoln National Life Insurance

105 P.2d 683, 110 Mont. 521, 1940 Mont. LEXIS 129
CourtMontana Supreme Court
DecidedJune 25, 1940
DocketNo. 8,053.
StatusPublished
Cited by8 cases

This text of 105 P.2d 683 (Thompson v. Lincoln National Life Insurance) is published on Counsel Stack Legal Research, covering Montana Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Thompson v. Lincoln National Life Insurance, 105 P.2d 683, 110 Mont. 521, 1940 Mont. LEXIS 129 (Mo. 1940).

Opinion

MR. JUSTICE MORRIS

delivered the opinion of the court.

This is an appeal from a judgment entered by default in favor of the defendant. The default was taken after the defendant’s demurrer to the complaint was sustained, and the plaintiff failed to plead further. The basis of the appeal is that *523 the complaint states a cause of action and the demurrer should have been overruled.

The allegations in the complaint show that on the 30th day of July, 1926, S. E. Brokaw, deceased, entered into a written agreement with the Northern State Life Insurance Company for the purchase of certain land in the county of Teton. Later, and prior to May 23, 1933, the defendant Lincoln National Life Insurance Company took over the assets of the Northern States Life Insurance Company. On the 26th day of January, 1931, the plaintiffs herein qualified as administratrices of the estate of Brokaw. On the 20th day of September, 1934, the plaintiffs tendered the deferred payments and interest due under the contract and demanded a conveyance. On the 26th of November the defendant sold and conveyed the land to one Luinstra. There are further allegations to the effect that the full sum of the contract was $3,000, and that $2,404.38 had been paid during the lifetime of the deceased Brokaw. The claim for damages includes the amount paid by Brokaw.

The contract, which is made a part of the complaint, provided for the payment of $500 at the execution of the contract, and $500 at or before the first day of November of the years 1927, 1928, 1929, 1930 and 1931. It further appears from the contract that in case Brokaw failed to make any of the above payments or of interest, then the whole amount should become due and “this contract shall, at the option of the party of the first part [insurance company], be forfeited and determined by giving to the second party [Brokaw] 30 days ’ notice in writing, of the intention of the first party to cancel and determine this contract, setting forth in said notice the amount due upon said contract, and the time and place when and where payment can be made by said second party.”

It is the above-quoted provision of the contract which is involved in this appeal. The plaintiffs allege that no notice was given pursuant to this provision, that the contract was in full force and effect at the time they made their tender of payment, and that, therefore the breach was on the part of the *524 insurance company when it refused to convey title and later conveyed the land to another.

The defendant, by demurring and for the purpose of testing the pleadings, admits that no notice was given but contends that the contract was at an end at the time of the failure to make the last payment. The question before us is whether, under the allegations presented by the pleadings, the contract was in full force on September 20, 1934, when the tender and offer of performance was made by the plaintiffs.

In the case of Suburban Homes Co. v. North, 50 Mont. 108, 145 Pac. 2, Ann. Cas. 1917C, 81, a problem similar to the one here was presented to this court. In that case a contract involved the sale of real estate and contained a provision that upon default by the vendee to pay any installment, the vendor might at its option declare the contract null and void. Another provision made time of the essence of the contract. Another provided that a declaration of the intention to declare null and void should be mailed to the vendee. The suit by the vendor was for the cancellation of the contract. In holding that the vendor was entitled to cancellation, Mr. Chief Justice Brantly, speaking for the court, said :

“Although by its express terms time is made of the essence of the contract, and an option is reserved by the vendor to declare it terminated for failure to pay the purchase price at the date it falls due, or, if it is payable in installments, at the date that any one of the installments falls due, this provision may be waived by a failure to exercise the option, or by accepting a payment after it is due. The vendor cannot thereafter allege such default as a ground for declaring the contract terminated. (Pomeroy on Contracts, see. 357; 2 Warvelle on Vendors, sec. 820; Grigg v. Landis, 21 N. J. Eq. 494; Boone v. Templeman, 158 Cal. 290, 139 Am. St. Rep. 126, 110 Pac. 947.) If payment is to be made in installments, default in the payment of any installment is a distinct breach and gives the vendor the right to declare a forfeiture. The right must be promptly exercised, however; otherwise, the right being exclusively that of the plaintiff, he will be presumed to regard the contract as *525 still valid and existent.” To a like effect is the holding in Hammond-Dodson v. Slattery, 67 Mont. 489, 216 Pac. 323, and Fratt v. Daniels-Jones Co., 47 Mont. 487, 133 Pac. 700.

We think the question in the ease at bar is answered by the above decisions of this court. Even though time is expressly made of the essence of a contract, yet the provision requiring notice of termination qualifies its operation. When a notice is required by the terms of the contract, such notice is essential to the exercise of an option for its termination. (17 C. J. S. 892.) It is alleged in the action at bar that notice was not given, and that the contract was in full force when the plaintiffs made a tender of the amount due, and that when the defendant failed and refused to perform the contract and convey title to them, they were entitled to treat the contract as breached and demand recovery of the amounts paid in accordance with the provision of section 8672, Revised Codes.

The defendant contends that the complaint was insufficient in that the exact amount tendered by the plaintiffs when they demanded conveyance, was not set out in the complaint. The words used by the plaintiffs were: “tendered to the said defendant the balance of the deferred payments and interest due on said contract.” As authority for its contention the defendant cites 1 Bancroft on Code Pleading, section 334, in which the author in speaking of allegations in an answer states: “He must state the amount tendered, which must, of course, appear to be sufficient.” The defendant also cites 62 C. J. 688, and the cases of Proebstel v. Trout, 60 Or. 145, 118 Pac. 551, and Harrison v. Beals, 111 Or. 563, 222 Pac. 728. The reason for this rule is stated in Harding, Whitman & Co. v. York Knitting Mills, 142 Fed. 228, 229, where the court said: “The averment of tender so made is clearly insufficient; the difficulty with it being that it gives no facts. As it stands, it is a mere conclusion, like an averment of payment, which, without more, is bad. * * * Tender is a mixed question, and the facts should be given in order that the court may see that as a matter of law it was good, to judge of which it is necessary to state how and to whom it was made, as well as the amount tendered, without which this cannot be known. ’ ’

*526

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Schultz v. Campbell
413 P.2d 879 (Montana Supreme Court, 1966)
Rader v. Taylor
333 P.2d 480 (Montana Supreme Court, 1958)
Ballenger v. Tillman
324 P.2d 1045 (Montana Supreme Court, 1958)
Stockmen's Supply Co. v. Jenne
237 P.2d 613 (Idaho Supreme Court, 1951)
Fiers v. Jacobson
211 P.2d 968 (Montana Supreme Court, 1949)
Thompson v. Lincoln National Life Insurance
138 P.2d 951 (Montana Supreme Court, 1943)

Cite This Page — Counsel Stack

Bluebook (online)
105 P.2d 683, 110 Mont. 521, 1940 Mont. LEXIS 129, Counsel Stack Legal Research, https://law.counselstack.com/opinion/thompson-v-lincoln-national-life-insurance-mont-1940.