Trotter v. Allen

234 So. 2d 287, 285 Ala. 521, 1970 Ala. LEXIS 1066
CourtSupreme Court of Alabama
DecidedApril 9, 1970
Docket6 Div. 664
StatusPublished

This text of 234 So. 2d 287 (Trotter v. Allen) is published on Counsel Stack Legal Research, covering Supreme Court of Alabama primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Trotter v. Allen, 234 So. 2d 287, 285 Ala. 521, 1970 Ala. LEXIS 1066 (Ala. 1970).

Opinion

BLOODWORTH, Justice.

Originally this case was assigned to another justice of this court. It was recently reassigned to the writer.

This is an appeal by sellers from a decree granting the purchaser specific performance of a contract to sell a house and lot.

The issue before us. on this appeal is aptly stated by the trial, court in his final decree:

“ * * * [I]t was agreed * * * that the pivotal issue for determination by the Court is whether the failure to specify the terms of the ‘Second Mortgage’ mentioned in the real estate sales contract * * * rendered the contract void for uncertainty, and, if not void, then whether the second mortgage [offered by buyer and containing specific terms] * * * reasonably complied with the said provision which required the furnishing by Complainant (Buyer) to Respondents (Sellers) of a second mortgage in the sum of $2,600.00.”

The trial court determined this issue adversely to the sellers and held that the second mortgage proffered by the buyer to the sellers was reasonable and complied with the provisions of the real estate contract as to furnishing the second mortgage in the sum of $2,600. In this, we think the trial court erred because we think the contract was incapable of being specifically performed as we hereinafter indicate.

The pertinent portions of 'the bill of complaint filed by buyer allege that the buyer and the sellers entered' into a sales contract -for the sale of the house and lot to the buyer for the sum of $6,424.55, of which sum $100 was paid as earnest money, $400 Was to be-'-paid in cash on closing the sale, and $-2,600 “By Second’Mortgage”with the purchaser agreeing to ..assume an existing first mortgage. The buyer'alleged that she had delivered to the closing at-t&frifey-the cash 'sheT.wás to pay .'ondclbsing, [523]*523and certain other sums not here pertinent, and that she was ready, willing and able to proceed with the closing. She also alleged that “the second mortgage, described in said contract was, by agreement between the parties, to have been a twenty-year second mortgage with 8 per cent interest payable in monthly installments of Twenty-one and Wioo ($21.75) Dollars per month'.” The bill prayed for specific performance of the contract by requiring the sellers to execute a deed to the property and requiring her to execute the mortgage required.

After the sellers’ demurrer to the bill of complaint was overruled, they filed an answer and cross-bill. - They denied: all material allegations of the bill and demanded- strict proof of the same; that any money was ever paid them in connection with the transaction; that there was ever a valid or binding contract entered into by and between the parties; every material allegation seeking affirmative relief by way of .specific performance; and, that there is any valid or binding contract or agreement between them which can be enforced in equity.

After submission of the cause to the trial court by the parties upon the pleadings and' exhibits, and without taking any oral testimony, the trial court granted specific performance. It ordered the sellers to execute a warranty deed and deliver the same to the buyer or closing attorney, and ordered the buyer to- deliver a second mortgage and note upon receipt of the warranty deed. After motion for rehearing filed by the sellers was overruled, the court issued a rule nisi to enforce its decree. This appeal then ensued.

There are several assignments of error argued by sellers for reversal of this case. However, the principal issue, and the only one to which we need 'address ourselves, is whether the trial court was in error in granting specific performance of the sales contract, or, put differently, did the failure to specify the terms of the second mortgage in the contract render the contract incapable of specific performance.

The sellers contend that the terms of the real estate contract which refers to part of the consideration as being “By Second Mortgage $2600.00” is so indefinite and uncertain that it is incapable of being specifically enforced without additional or oral testimony to explain the same. They say the court’s granting of specific performance merely adopts a suggestion of the buyer that the mortgage be paid in certain installments over a period of twenty years and has no basis in law or fact. They argue the trial court made a contract for the parlies which was never mutually agreed to, and the terms of which they dispute.

The buyer contends that by common understanding of the parties the terms of the second mortgage were agreed to by the parties (as alleged in her bill of complaint). She says she has done everything required to be done under the terms of the contract and should be granted specific performance to require the sellers to convey the property to her. She also contends that under Equity Rule 25, the sellers were required to admit or deny .or confess and avoid all material averments of her bill of complaint, and that averments not denied, confessed or avoided are taken as admitted. She says the buyers never specifically denied the averments of her bill as to the terms of the second mortgage and therefore they are admitted.

' First, .we address ourselves to the principal question, that is, whether the terms of the contract sought to be specifically performed are too uncertain and indefinite to authorize the granting of specific performance.

Title 9, § 55, Code of Alabama, 1940 .(as recompiled 1958), provides in part as follows :

“The following obligations cannot be specifically enforced:
* * * % * *
[524]*524“An agreement, the terms of which are not sufficiently certain to make the precise act which is to be done clearly ascertainable.”

Are the terms of the contract in this case so certain as to make the precise act, i. e., the giving of a second mortgage for $2600 “clearly ascertainable” ? Let us see what our cases have said on this subject.

In the recent case of Tensaw Land & Timber Co., Inc., et al. v. Covington (1965), 278 Ala. 181, 176 So.2d 875, a decree of the trial court granting specific performance was reversed when we held that a contract for purchase of realty could not be the subject of a suit for specific performance in view of the uncertainty of terms relating to payment of the purchase price. Much of what is said in that case is appropriate to the decision in this case and we quote therefrom:

“In neither the pleading nor proof are the terms or the due dates payments of the balance of the $275.00 purchase price set forth or alluded to. Thus if the receipts signed by R. M. Boykin be deemed to be written memoranda of the oral transaction, both the oral contract and the written memoranda are too indefinite to remove this transaction from the Statute of Frauds.1 As stated in Alba v. Strong, 94 Ala. 163, 10 So. 242: [Footnote ours]
“ ‘The following propositions must be regarded as settled by the former decisions of this court beyond controversy: First, that to authorize the specific enforcement of an agreement to sell land, all the terms of the agreement must have been agreed on, leaving nothing for negotiation.’
“In Aday v. Echols, Adm’r, et ais., 18 Ala.

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Bluebook (online)
234 So. 2d 287, 285 Ala. 521, 1970 Ala. LEXIS 1066, Counsel Stack Legal Research, https://law.counselstack.com/opinion/trotter-v-allen-ala-1970.