Wilhorn Builders, Inc. v. Cortaro Management Co.

307 P.2d 94, 81 Ariz. 381, 1957 Ariz. LEXIS 257
CourtArizona Supreme Court
DecidedFebruary 5, 1957
Docket6138
StatusPublished
Cited by6 cases

This text of 307 P.2d 94 (Wilhorn Builders, Inc. v. Cortaro Management Co.) is published on Counsel Stack Legal Research, covering Arizona Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Wilhorn Builders, Inc. v. Cortaro Management Co., 307 P.2d 94, 81 Ariz. 381, 1957 Ariz. LEXIS 257 (Ark. 1957).

Opinion

PHELPS, Justice.

This is an appeal from a judgment in favor of the plaintiff, Cortaro Management Company and against the defendants, Wilhorn Builders, Inc., and Mildred J. Sligh, and from each provision thereof. The parties will be hereinafter designated as the seller (Cortaro Management Company) and the buyer (Wilhorn Builders, Inc.) and Mildred Sligh (Mildred J. Sligh, president and agent of Wilhorn Builders, Inc.).

This case involves an action by the seller against the buyer on a contract for the sale of land. The written contract which is the subject of this action was entered into on January 2, 1952. It called for the sale of approximately one hundred and twenty acres of land for a total purchase price of $18,625, $5,000 of which was paid at the time of the execution of the contract. The balance was to be paid in annual installments of $2,725 each, plus interest on the unpaid balance at six per cent, payable on December 21 of each year thereafter until fully paid. The seller agreed to convey to the buyer upon payment of each $2,725 and *383 accrued interest, a parcel consisting of twenty acres, commencing with the most westerly twenty-acre parcel of the one hundred and twenty-acre tract. The contract is silent as to which party had the duty of providing the legal description and deed for each twenty-acre conveyance. The contract did provide for costs, expenses and reasonable attorney’s fees in favor of the prevailing party if suit was brought to enforce or cancel the agreement.

On January 7, 1953 the buyer made the payment which was due December 21, 1952. The payment consisted of $2,725 to be applied to the principal and $803.88 interest, which paid the interest up to January 2, 1953. The seller did not deliver a deed for the westernmost twenty acres at that time, nor did it prepare such a deed or secure a legal description for the deed. The buyer, as a matter of expediency, incurred the expenses of $183.10 in securing the survey for the legal description for the deed, as well as the actual drawing thereof. It is the buyer’s contention, with which we agree, that this cost should be borne by the seller.

The next contract payment was due on December 21, 1953, although it was not made on that date. A controversy arose between the parties as to the expenses for the previous twenty-acre parcel and as to whose duty is was to have the deed to the next twenty-acre parcel prepared. As a result the second deed was prepared by the seller and it was deposited with the escrow agent on March 6, 1954. The seller paid the expense for procuring the description for' this parcel.

On March 20, 1954, the buyer tendered' the sum of $3,194 as and for the principal and interest due December 21, 1953, on the theory that the buyer was entitled tO' deduct the costs of survey, and for preparation of the prior deed and that such tender would be sufficient. This tender was refused as being late and not in the correct amount. On the same date the seller brought this action in the Superior Court of Pima County to recover the December 21, 1953 installment. The buyer answered and pleaded in defense that the seller failed to place the twenty-acre deeds in escrow with a policy of title insurance. In addition, the buyer contended that it was entitled to offset the expenses of surveying the land for a legal description of the first twenty-acre deed and preparation of the deed itself.

At the time of the filing of this suit more than thirty per cent but less than fifty per cent of the total purchase price had been paid, and it was properly stipulated that a forfeiture could not have been declared pri- or to April 20, 1954, under the provisions of section 71-126, A.C.A.1939 (now sections 33-741, 33-742, A.R.S.1956). On August 4, 1954, the seller moved to amend its complaint to seek forfeiture of the buyer’s interest rather than to recover the unpaid purchase money installment. This motion *384 to amend was resisted by the buyer on the grounds that the seller had conclusively elected its remedy in suing for the purchase money installment of December 21, 1953, and was estopped to change its position. The trial court granted the motion to amend and the amended complaint was filed September 22, 1954. The amended complaint added Mildred Sligh as a party-defendant.

The trial court, sitting without a jury, granted judgment in favor of the seller, cancelling and forfeiting the buyer’s interest in the contract and declaring the seller to be fee simple owner of all the land in question, except the land described under the exception described therein, and awarding all sums paid under the contract as liquidated damages.

Appellant has presented a number of assignments of error for our consideration but we believe the case may be disposed of by a consideration of only one question raised, i. e., did plaintiff’s act of bringing an action on March 20, 1954, to recover the installments and interest due under the terms of the contract on December 21, 1953, constitute an irrevocable election of its remedies and substantive rights under the terms of the contract.

In order to answer this question we will first look to the terms of the contract between the parties. So far as here material it provides:

“ * * * Upon any default on the part of the buyer of any of the terms, conditions or covenants herein contained and by him to be kept and performed, the seller may, at his own sole option and discretion either (1) forfeit and terminate this contract, in which event the seller shall declare this contract forfeited, and all rights of the buyer hereunder shall thereupon cease and terminate and all sums of money theretofore paid hereunder shall be forfeited to and retained by the seller as liquidated damages, and the buyer shall immediately deliver to the seller peaceful possession of said premises, and the seller may forthwith re-enter said premises and all thereof and remove all persons therefrom, and withdraw from escrow forthwith the abstract of title or policy of title insurance and deed hereinabove provided for, or (2) the seller may treat this contract as continuing, and may enforce the same either by specific performance or other appropriate remedy. Waiver of one or more defaults by the seller shall not constitute a bar to declare future default or defaults, nor shall an election to treat the contract as continuing constitute a bar as to the right to declare any future default or defaults, and upon the occurrence of such future default or defaults, to again elect as to the remedy. * * * ”

*385 The rights and remedies of the parties in the event of default by the purchaser are above defined in clear and unambiguous language, i. e., that in event of default by the buyer, the seller may either forfeit and terminate the contract, in which event he shall declare the contract forfeited, etc., or he may treat the contract as continuing and may enforce it by specific performance or other appropriate remedy.

On March 20, 1954, the seller brought its action to recover the installment and interest due on December 21, 1953, and by so doing declared to the buyer that he elected to treat the contract as continuing; that at that time at least, it wanted the money then due and that it did not want the land. We are of the view that this constituted a conclusive election of substantive rights.

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Bluebook (online)
307 P.2d 94, 81 Ariz. 381, 1957 Ariz. LEXIS 257, Counsel Stack Legal Research, https://law.counselstack.com/opinion/wilhorn-builders-inc-v-cortaro-management-co-ariz-1957.