Vogel v. Ensor

131 N.E. 416, 76 Ind. App. 91, 1921 Ind. App. LEXIS 19
CourtIndiana Court of Appeals
DecidedJune 9, 1921
DocketNo. 10,864
StatusPublished
Cited by1 cases

This text of 131 N.E. 416 (Vogel v. Ensor) is published on Counsel Stack Legal Research, covering Indiana Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Vogel v. Ensor, 131 N.E. 416, 76 Ind. App. 91, 1921 Ind. App. LEXIS 19 (Ind. Ct. App. 1921).

Opinion

Enloe, C. J.

The complaint in this case was in two paragraphs, to each of which a demurrer interposed by appellee for want of facts was sustained, and the appellants,. refusing to plead further, suffered a judgment to be rendered against them for costs; from which this appeal is prosecuted. The errors assigned challenge the action of the “court in sustaining said demurrers.

The first paragraph of the complaint was based upon a certain instrument in writing, which purported to be a real estate broker’s contract. That part of said instrument material to the decision of this case read as follows: “Provided that said J'. H. Ensor sell this property to party or parties whose attention was directed to said land by said Mitchell then said Mitchell entitled to and shall receive his commission of-per cent, on the sale price thereof.” By the second paragraph of his complaint the plaintiff sought to have said clause of said contract reformed by striking therefrom the word “Mitchell” where the same occurred in said contract and particularly in the aforementioned clause thereof, and inserting in lieu thereof, the names of the plaintiffs herein Charles B. Vogel and William H. Ax-[93]*93ton, and also to have said clause before quoted, reformed by inserting the word “three” in the blank before the word “per cent.” so that the latter part of said clause would read as follows: “Then said Vogel and Axton entitled to and shall receive their commission of three per cent, on the sale price thereof.”

In the said second paragraph of complaint it is alleged: “That it was mutually agreed between plaintiffs and defendant that in case plaintiffs secured a buyer for said real estate that the defendant would pay plaintiffs a commission of three per cent, of purchase price; that by inadvertence and mutual mistake of the plaintiffs and the defendant at the time of drawing said contract, the amount of commission agreed upon between plaintiffs and defendant was omitted from said contract; that said omission was due to a mutual mistake of the plaintiffs and the defendant in drawing said contract; that it was intended by plaintiffs and the defendant to insert said three per cent, in said contract; but the scrivener who drew said contract by inadvertence and mistake left said amount out of said contract.” Plaintiffs ask that said contract be reformed and that they be given judgment thereon as reformed, against the appellee in the sum of $660.

1. The first paragraph of the complaint was clearly insufficient. The contract was incomplete, the amount of the commission to be paid not being stated therein. This was a vital part of the contract which the statute required to be in writing. As said in the case of Zimmerman v. Zehendner (1905), 164 Ind. 466, 73 N. E. 920, 3 Ann. Cas. 655: “The material part of the agreement—the amount of compensation—is still left in uncertainty and undetermined. The compensation is to be the amount ‘understood;’ but by whom is not stated. In short, the contract, in so far as it relates to this action, is only partially in writing. [94]*94The important feature—the amount of commission to be paid—is to be ascertained by parol testimony in regard to an understanding which may prove to be a misunderstanding, the exact thing which the statute was designed to prevent.”

A material part of the contract -in suit being verbal, it was an oral contract, and therefore invalid under our statute, §7463 Burns 1914, Acts 1913 p. 638. The court did not err in sustaining the demurrer to said first paragraph of complaint.

The action of the court in sustaining a demurrer to ■ the second paragraph of complaint presents a question of more difficulty. As the contract stood at the time suit was brought, it was entirely without any legal vitality.

2. Is it within the power of a court of equity under the guise of reforming a contract, to vitalize and thereby give legal life and force to that which, as made by the parties, was without such life and force? It has been repeatedly held that the statute in question was enacted for the purpose of preventing frauds and perjuries by requiring the entire contract to be in writing. In a court of law, it is immaterial that the minds of the parties did actually meet in each and all of the several necessary elements to be embodied in their contract; if they have not evidenced such meeting of their minds by placing their agreement in writing, a court of law will not hear parol testimony on the matter. As said in the Zimmerman case, supra,: “The understanding as • to the commission to be paid may prove to be a misunderstanding.” For a court of equity to assume jurisdiction of this matter and permit a contract, such as the one in question, to be reformed under the circumstances revealed by the complaint in this case, such court of equity would be compelled to hear the testimony of the parties; the plaintiffs and their wit[95]*95nesses would be permitted to go upon the witness-stand and testify concerning their understanding of the agreement; the defendant would likewise be permitted to go upon the witness-stand and deny, possibly in toto, everything as testified to by the plaintiffs and their witnesses; all of this testimony being parol, the court, sitting as a court of equity, has opened the gates and thus removed the bar, and made it possible for perjury to be committed; to sustain the contention of the appellants would be, in effect, to say that the legislature intended to prevent fraud and perjury in courts of law but had no such intention as to courts of equity. We do not think that the law should be so construed as to produce what seems to us such an unseemly result.

In a note, 34 Cyc 927, it was said: “Through mistake or accident an instrument within the statute of frauds may include subject-matter as lands, which should have been omitted, or it may omit subject-matter which should have been included. No other ground for reformation exists within the statute. As to the first case the authorities agree that reformation does not conflict with the statute of frauds because an instrument already made is merely narrowed down. * * * As to the second a distinct conflict of authorities exists among the American decisions.”

In Lee v. Hill (1879), 66 Ind. 474, it was sought to correct a memorandum of the sale of personal property by inserting therein the word “sold.” The court in passing upon the matter said: “It is very clear, wé think, that the alleged mistake in this memorandum cannot be corrected, and the writing cannot be reformed, in the manner asked for by the appellants in this action. * * * Their alleged contract for the purchase of said goods from the appellees, therefore, comes fairly within the provisions of section 7 of ‘An act for the prevention of frauds and perjuries/ * *

[96]*96The court, after analyzing the alleged memorandum of sale therein involved, said: “The alleged contract for the sale of said goods was invalid, illegal and of no binding force. * * * It is further claimed, that the omission of the fact of sale from the memorandum was the result of mistake; but it is immaterial how the omission occurred, as it is very clear that, under the law, parol evidence could not be received to supply the omitted fact in the memorandum.”

In the case of Stodalka v. Novotny (1893), 144 Ill. 125, 33 N. E. 534, a bill had been filed in chancery to reform and correct a certain contract of sale theretofore entered into between the parties.

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Cite This Page — Counsel Stack

Bluebook (online)
131 N.E. 416, 76 Ind. App. 91, 1921 Ind. App. LEXIS 19, Counsel Stack Legal Research, https://law.counselstack.com/opinion/vogel-v-ensor-indctapp-1921.