Watne v. Halvorson

204 N.W. 4, 52 N.D. 714, 1925 N.D. LEXIS 118
CourtNorth Dakota Supreme Court
DecidedMay 26, 1925
StatusPublished

This text of 204 N.W. 4 (Watne v. Halvorson) is published on Counsel Stack Legal Research, covering North Dakota Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Watne v. Halvorson, 204 N.W. 4, 52 N.D. 714, 1925 N.D. LEXIS 118 (N.D. 1925).

Opinion

Birdzell, J.

This is an action to foreclose a land contract. The plaintiff had judgment below and the defendant appeals. The case is here for trial de novo. The contract in question was entered into on the 13th day of August, 1915 between Ole O. Watne, since deceased, and Nina 0. H'alvorson. It provided for the sale by the former to the latter of about 360 acres of land in Ward County, near the city of Ilinot, for the sum of $8500.00. The consideration was payable, $500.00 on or before November 1, 1915, $1500,00 on or before November 1, 1916, and the balance in installments of $1000.00 annually thereafter, with interest from March 1, 1916 ’at the rate of 6 per cent. The contract contained a provision that when the purchase price should be paid in sufficient amount to leave a balance of not more than $5,000.00 unpaid, the purchaser would be entitled, at her election, to a deed, being required to secure the balance of the purchase price by a first mortgage on the premises. It contained a further stipulation that the purchaser might have separate deeds for eighty-acre tracts whenever the remaining purchase price unpaid should not exceed $20.00 per acre on the residue. The purchaser went into possession under the above contract 'and remained in possession for several years. The action is predicated upon alleged defaults in the payment of the purchase price *716 to the extent of $0800.20, and to the further extent of $106.88 delinquent taxes paid by the plaintiff, as well as $894.4-0 representing unpaid taxes for the years 1919, 1920, 1921 and 19-22. The defendant denies that she is in ¿('fault as 'alleged and asks for affirmative relief under the. clause in the contract providing for the conveyance in eighty-acre tracts upon payment of the stipulated portion of the consideration. She pleads that on March 18, 1920 written notice was served of her election to take a separate deed to a certain prescribed eighty-acre tract and claims that the plaintiff was thereafter in default through non-compliance.

The trial court found that prior to March 1, 1916, the date from which interest was chargeable there had been paid on the contract $669.00 leaving a balance of $7881.00 and that after March 1, 1916 payments were made as follows: November 9, 1916, $200.00; December 12, 1916, $400.00; November 5, 1917, $230.00; January 24, 1918, $200.00; August 7, 1919, $1500.00; March 18, 1920, $1000.00. It further found that at no time during the life of the contract had the balance due thereon been reduced to such an amount ($5600.00) as would make operative the provision for conveyance in tracts of eighty acres. It found, however, that the defendant had served notice under this provision in March, 1920 which was unavailing, by reason of the defaults and of the defendant, to bring her within this option clause. An interlocutory judgment was entered giving the defendant an opportunity to cure the defaults or redeem by paying $8756.75, with interest from December.20, 1923, together with unpaid and delinquent taxes. Upon the failure to comply with the interlocutory decree, j udgment was entered canceling the contract and for costs.

The principal contention upon the appeal is that the tidal court erred in computing the amount due and that other errors resulted therefrom. The argument depends largely upon the effect of certain exhibits. This may be best understood by referring to the exhibits themselves.

Plaintiff’s Exhibit “I” is as follows:

“Nov. 5 th, 1917.
“Received from IT. L. Halvorson to apply contract of purchase to N. C. Halvorson of the Watne farm west of Minot the sum of $230.00 *717 to cover this year payment except $200 to be paid during December 1917 balance extended until Nov. 1918.
Nov. 5th, 1917.
Ole 0. Vatne.’

Plaintiff’s Exhibit “IT.” is as follows:

“I, the undersigned, Ole O. Watne, being the owner and holder of Contract for deed issued by me to Nina 0. ITalvorson of "Minot, N. D. dated August 13th, 1915 covering the Northwest Quarter and the West half of the Southwest Quarter and the Northeast Quarter of the Southwest Quarter ’and the West Half of the Northeast Quarter, all in Section 15, Twp. 155, Rge. 83 containing 360 acres, do hereby acknowledge payment of the sum of Two Hundred Dollars, being the balance of the payment agreed to be paid during the year 1917 and hereby satisfy said contract and acknowledge performance thereunder as to conditions accruing prior to this date.
Dated at Minot, N. Di January 24th, 1918.
Ole 0. Vatne.”

It is stated that in the course of the performance of the contract in question numerous small payments were made from time to time and that the effect of the receipt last above quoted was to acknowledge full performance of all the obligations of the original contract down to the date of that receipt. Reference to the contract will readily disclose that payments accruing, exclusive of interest, prior to January, 1918 were as follows: November, 1915, $500.00; November, 191(5, $1500.00; November, 1917, $1000.00; total $3000.00. There is a receipt in evidence, however, indicating that there was paid in 1915 $650.00 or $150.00 more than the contract called for. There are two receipts for payments made in 1916. One dated November 9, 1916 acknowledges receipt of $200.00 to 'apply on the contract and it provides that the balance of the payment for 1916 in the sum of $400.00 is to be paid later in the season “and the contract to run as before.” The second receipt is dated December 12, 1916 and acknowledges receipt of $400.00 to apply on the purchase price “'as per agreement.”, The next receipts are those above qitoted in full, namely of November 5, 1917 and January 24, 1918 for $230.00 and $200.00, respectively. It is counsel’s contention that all of the payments made are not evi- *718 deneed by separate receipts, 'and tliat since the receipt of January, 1917 recites a satisfaction of the contract and acknowledges performance as to conditions accruing prior to its date, it must operate as a satisfaction of all payments of principal and interest. Giving to this receipt the effect claimed for it, there would be a balance owing .upon the contract in November, 1917 of $0500.00, with interest at 6 per cent from January 24, 1918, of which $1000.00 would be due November 1, 1918, and so on for the following years. There are receipts in evidence showing the payment of $1500.00 on the contract in August, 1919, and of $1000.00 on the 18th of March, 1920. The purchaser demanded a deed to eighty acres at or about the time of the March payment.- It is contended these payments reduce the balance to the point where the purchaser was entitled to a deed for the eighty-acre tract as demanded.

In the state of the evidence here, we are unable to adopt the appellant’s construction of the receipt of January 24, 1918.

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Bluebook (online)
204 N.W. 4, 52 N.D. 714, 1925 N.D. LEXIS 118, Counsel Stack Legal Research, https://law.counselstack.com/opinion/watne-v-halvorson-nd-1925.