Waugh v. Williams

119 S.W.2d 223, 342 Mo. 903, 1938 Mo. LEXIS 360
CourtSupreme Court of Missouri
DecidedAugust 17, 1938
StatusPublished
Cited by28 cases

This text of 119 S.W.2d 223 (Waugh v. Williams) is published on Counsel Stack Legal Research, covering Supreme Court of Missouri primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Waugh v. Williams, 119 S.W.2d 223, 342 Mo. 903, 1938 Mo. LEXIS 360 (Mo. 1938).

Opinion

*907 TIPTON, J.

In the Circuit Court of Greene County, Missouri, respondents brought this action to compel appellant to pay the balance of the purchase price of the Keystone Hotel which he had contracted to buy from them and to establish a lien against this property for the unpaid portion of the purchase price.. The trial court entered a judgment against appellant- in the sum of $7736, but did not enforce the lien.

On October 22, 1932, respondents entered into a written contract with appellant, by the terms of which they sold the Keystone Hotel, located in Springfield, Missouri, including both real and personal property, to appellant for the sum of $9500. The contract provided that $5000 be paid in cash, the balance to be expressed in a note bearing six per cent per annum interest and secured by a second deed of trust. The contract recites that the sale was subject to a first deed of trust to secure a note of $16,000, upon which $1000 would be due February 4, 1934, $1000 due February 4, 1935, $1000 due February 4, 1936, and the balance due February 4, 1937. Respondents agreed to pay all interest'on the $16,000 note up to February 4, 1933. Appellant was to pay all State and county taxes. Respondents were to transfer all insurance, with the premiums paid, to appellant.

The contract further recites that appellant paid $200 on the date the contract was executed and was to pay $4800 in cash within thirty, days. It also provided that he was to have possession of all the property on November 1, 1932. The evidence shows that he did take possession on that date and never thereafter surrendered it. By the terms of the contract, respondents were to make, execute and deliver to appellant a good and sufficient deed to the real estate, subject to the first deed of trust and taxes, when the cash payment was completed, and make a bill of sale for the personal property. The contract provided that respondents should have a lien upon all the property until the cash payment provided for was completed and until the second deed of trust was executed and delivered.

When the $4800 became due, respondent W. N. Waugh went to appellant and spoke to him about closing the contract, to which appellant replied that he did not have the money but was trying to get it. However, on December 19, 1932, appellant paid respondents $900 and on February 15, 1933, he paid them $50 on the contract. At the time of each payment he stated that that was all he could pay. The mat *908 ter ran along until March 13, 1933, when appellant paid the. holder of the first mortgage note $462.72, being the installment of interest, and also paid $266.42 premiums due on the insurance policies. Both of these items were to have been paid by respondents according to the terms of the contract; however, respondents did.give appellant credit for them. There remained another installment of interest of $430 which respondents had agreed to pay.but they gave appellant credit for this sum on March 13, 1933. At various times thereafter respondents made demands for payment of money due under the contract but were always told by appellant that he could not raise the money.

On August 26, 1933, respondents instituted an ejectment action against appellant and his tenants, but respondents’ motion for the. appointment of a receiver was by the court overruled. Thereafter, this action was dismissed without having been heard on its merits. On October 19, 1933, respondents filed a similar action in ejectment and for rents and profits against appellant. Again their application for a receiver was denied. This action in ejectment was also dismissed by respondents without ever having been tried on its merits.

Default in the payment of one installment of interest which should, have been paid by respondents having accrued, and also default in other interest installments and on one of the notes for $1000 having accrued, the holder of the notes secured by the first deed of trust foreclosed on the real estate in question on August 15, 1934, and it was bought by the holder of the indebtedness. Appellant gave notice and bond, and complied with the other requirements of the law entitling him to redeem within one year.

This action was commenced December 21, 1934, and tried July 24, 1935. Judgment was rendered December 21, 1935. Other pertinent facts will be stated in the course of this opinion.

Appellant contends that the petition wholly fails to state a cause of action because there is no allegation in it that respondents had tendered a deed to him and demanded performance by him. The' petition does allege that “plaintiffs state they have always been ready and willing and are now ready and willing to execute and deliver to defendant the deed provided for in said contract upon defendants’ compliance with the terms thereof. . . .”

We believe this contention to be without merit. While the petition does not allege an actual tender of the deed to appellant, yet it does allege an offer of a tender. In other words, the petition alleges a willingness to execute the deed upon compliance with the terms of the contract by appellant. While the rule is different in other jurisdictions, this is sufficient allegation in this State. [Lumley v. Robinson, 26 Mo. 364; Pomeroy v. Fullerton, 113 Mo. 440, 21 S. W. *909 19; Lanyon v. Chesney, 186 Mo. 540, 85 S. W. 568; Powell v. Hunter, 204 Mo. 393, 102 S. W. 1020; Davis v. Watson, 89 Mo. App. 15.]

Appellant contends that respondents cannot maintain this action because they had previously filed two ejectment suits in which they had asked for the appointment of a receiver, thereby electing to rescind the contract, while in the case at bar they are trying' to enforce the contract. Therefore, for this reason, he contends they are estopped to bring this action.

It is well settled in this State that the doctrine of election of remedies is based upon the principles of estoppel. If the first action brought is dismissed prior to being determined upon its merits, then there is no estoppel by record, but if the defendant has received legal detriment from the change in the form of action, there is an estoppel in pais, and plaintiff is precluded by the defense of election of remedies, even though the first suit was dismissed before final judgment. [Anchor Milling Co. v. Walsh, 20 Mo. App. 107; Johnson-Brinkman Comm. Co. v. Mo. Pac. Ry. Co., 126 Mo. 344, 28 S. W. 870; Hargadine-McKittrick Dry Goods Co. v. Warden, 151 Mo. 578, 52 S. W. 593; Otto v. Young, 227 Mo. 193, 127 S. W. 9; Cowan v. Young, 282 Mo. 36, 220 S. W. 869; Smith v. Becker, 192 Mo. App. 597, 184 S. W. 943.] If a party brings suit to rescind a contract and dismisses it before final judgment, he then may bring suit to enforce the contract. Under our decisions he is not limited in the second action to some form of action disaffirming the contract. In other words, we recognize no such doctrine on election of substantive rights. In the case of Johnson-Brinkman Comm. Co. v. Mo. Pac. Ry. Co., supra, the plaintiff first brought a suit in attachment which was dismissed, after which he brought a suit in replevin. We held that he had a right to enforce the replevin action, which disaffirmed the contract, even though he had first brought an attachment suit which affirmed the contract. He was not limited in his second action to some remedy consistent with his affirmance of the contract.

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Bluebook (online)
119 S.W.2d 223, 342 Mo. 903, 1938 Mo. LEXIS 360, Counsel Stack Legal Research, https://law.counselstack.com/opinion/waugh-v-williams-mo-1938.