Wilson v. Sunnyside Orchard Co.

196 P. 302, 33 Idaho 501, 1921 Ida. LEXIS 18
CourtIdaho Supreme Court
DecidedFebruary 28, 1921
StatusPublished
Cited by8 cases

This text of 196 P. 302 (Wilson v. Sunnyside Orchard Co.) is published on Counsel Stack Legal Research, covering Idaho Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Wilson v. Sunnyside Orchard Co., 196 P. 302, 33 Idaho 501, 1921 Ida. LEXIS 18 (Idaho 1921).

Opinion

MCCARTHY, J.

Appellant’s predecessors in interest and respondent entered into a contract, by which the former agreed to buy and the latter to sell the lands and water right involved. Respondent was to plant an orchard, remain in possession and control and care for it for five years and retain the crops. Appellant’s predecessors made an initial payment and agreed to pay the balance in six annual instalments. The contract provides for a forfeiture of all [505]*505rights and of any amounts paid, upon default in any of the agreed payments. In March, 1912, the contract was modified by the addition of the following writing indorsed thereon:

“We hereby guarantee the land described in the within contract to be practically free from alkali, and should said land prove to have alkali sufficient to harm the productiveness of the land materially in producing grain, hay, vegetables and fruit, provided said land is properly drained and farmed, the undersigned will return to the holder of this contract the purchase price paid for said land.”

This amounts to an express warranty of the character of the soil.

Appellant acquired individually a one-sixth interest in the contracts in November, 1913, and all of the interests in February, 1916. On January 1, 1916, he took possession on behalf of himself and others interested, and maintained possession thereafter. On February 28, 1916, he made a written demand on respondent for a return of all moneys paid on the contracts and a cancelation of the notes representing the remaining instalments, on the ground that the land was so impregnated with alkali as to materially harm its productiveness in ■ producing grain, hay, vegetables and fruit. This demand not being met, on March 18, 1916, he brought this action. In the complaint he sets out the original agreement, the subsequent warranty, the breach of the condition of the warranty in regard to alkali, his demand and the failure of respondent to meet the same, alleges that he elects to annul the contract, and, as relief, asks for the instalments of the purchase price already paid and a lien upon the premises to secure the same, and for the cancelation of the notes representing the remaining instalments and for the rescission of the contracts. Respondent in its answer denies any breach of the condition of the warranty, and sets up that appellant, with full knowledge of the existing conditions, has waived his right to rescind or to any relief on account of the warranty. In a cross-complaint it alleges that several of the notes are past due and unpaid, that it has complied with its contract, and asks the court to decree that unless [506]*506said remaining payments are made within sixty days of the decree, all rights of appellant under the contracts be forfeited upon respondent surrendering up the unpaid notes. To this cross-complaint, appellant filed an answer, incorporating all the allegations of his complaint, including those in regard to the breach of the warranty.

The court treated the action.as equitable, and submitted to the jury this interrogatory: “Has the land alkali sufficient to harm its productiveness materially in producing grain, hay, vegetables and fruit, provided it is properly farmed and drained ? ”

The jury answered “Yes.”

íhe court then made findings, adopting the finding of the jury as to the alkali character of the land. The court also found, first, thpt appellant did not act with sufficient promptness after discovering the condition of the land; second, that he and his predecessors paid instalments and permitted respondent to improve the orchard after learning the condition; third, that he entered into possession of the land, knowing of the condition; fourth, that he leased the land, and fifth, that he did not offer or tender possession of the land .to respondent before bringing suit. From these facts the court concluded that appellant had waived Ms right to rescind and was not entitled to any relief sought, but that respondent was entitled to judgment on its cross-complaint. Judgment was rendered accordingly.

An action on a promissory note is one at law, but if the promissory note is secured by a mortgage, a suit to foreclose is in equity. So in the present case, a simple action for breach of the warranty would be at law, but when the vendee asks for a lien and for cancelation of the notes, the suit is one in equity. It is not, however, an action for specific performance as contended by appellant’s counsel. The relief asked by respondent is peculiarly equitable. It does not ask a judgment against appellant on the remaining notes, but asks that his rights be forfeited unless he pays the past-due notes within sixty days. The trial' court correctly treated the proceeding as one in equity, and the verdict of the jury [507]*507as merely advisory. However, since it adopted that verdict as one of its findings, appellant was entitled to some relief unless be bad waived Ms rights by his own acts in connection with the land. The decisive question in the case is whether the court was correct in holding that he had. -

The first ground relied upon by the lower court to support its judgment was that appellant was guilty of laches, in that he did not rescind with sufficient promptness after learning the condition of the land. The court found that as early as 1913 he knew that the land contained alkali in sufficient quantities to harm its productiveness. The evidence is sufficient to justify tMs finding of the court.

The right of appellant to recover the purchase price is based upon the express warranty. When a right to recover money is based on an express contract, action is not barred until the period of the statute of limitations has expired, and this holds good even if the form of the action is equitable, unless, first, the delay is inexcusable, and second, special circumstances exist which make it inequitable to permit recovery. (Just v. Idaho Canal & Improvement Co., 16 Ida. 639, 133 Am. St. 140, 102 Pac. 381; Gray v. Reeves, 69 Wash. 374, 125 Pac. 162; 21 C. J., p. 254, note 85, p. 256, note 1.) Neither of these conditions obtained in the present case. When did the cause of action accrue? Not during the five years of respondents’ possession, for it was entitled to that time to make its warranty good. The cause of action could not accrue until respondent delivered possession to appellant. We conclude that analogy obtains between tMs case and those involving a warranty of the fitness or quality of a chattel sold. There is a conflict in the decisions as to when a cause of action on such a warranty accrues. The sounder view is that it accrues when the purchaser has had a reasonable time to determine whether the article is as warranted. (Sheehy Co. v. Eastern Importing & Mfg. Co., 14 App. D. C. 107, L. R. A. 1916F, 180, and note; Felt v. Reynolds, 52 Mich. 602, 18 N. W. 378.) Since appellant had knowledge of the character of the land when he took possession, his cause of action accrued then. He brought this [508]*508action within a few months. This was not inexcusable delay, and nothing had transpired since the cause of action accrued which would make recovery inequitable.

The court below also found that appellant had waived his right to any relief, first, by taking possession of the property; second, by the fact that his predecessors made payments and permitted respondent to improve the property under its contract, and, third, by leasing the land — all of which'happened after he and his predecessors had knowledge of the condition of the land.

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Bluebook (online)
196 P. 302, 33 Idaho 501, 1921 Ida. LEXIS 18, Counsel Stack Legal Research, https://law.counselstack.com/opinion/wilson-v-sunnyside-orchard-co-idaho-1921.