Worrall v. . Munn

38 N.Y. 137, 6 Trans. App. 100
CourtNew York Court of Appeals
DecidedMarch 5, 1868
StatusPublished
Cited by53 cases

This text of 38 N.Y. 137 (Worrall v. . Munn) is published on Counsel Stack Legal Research, covering New York Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Worrall v. . Munn, 38 N.Y. 137, 6 Trans. App. 100 (N.Y. 1868).

Opinion

Woodruff, J.

It is not claimed on this appeal that when a Court of Equity sustains a bill filed to compel the specific performance of a contract for the conveyance of lands, and decrees such conveyance, it is not within the proper exercise of its jurisdiction, and according to its settled modern practice, to give full and complete relief by awarding to the Plaintiff not only the conveyance to which he is entitled, but also the damages Which the Defendant has caused by his culpable refusal and delay in the performance of his eohtraet. These may be ascertained by the Court in any mode which its discretion approves.

The Court might proceed directly with the inquiry, or refer it )o a master, or order an issue quantum damnificatus, as seemed nost suitable (Story’s Eq. Jur., §§ 793-799), and will even J’ohibit the Plaintiff from proceeding in another Court to collect Is damages (Prothero v. Phelps, 25 Law J., Ch. 105 ; Reynolds v. Nelson, 6 Mad. 290; Frank v. Basnett, 2 Mylne & Keen, 68).

*104 The questions raised on this appeal are:

1st. What is the rule of damages for the delay, the vendor being in the possession of the land ?

2d. Is the vendor liable for deterioration arising from wilful waste committed by himself?

3d. To what time shall the damages he allowed ?

4th. Shall the vendor be charged with interest on the damages as they arise until final judgment ?

First, what is the rule of damages for the delay in the conveyance of the premises to the Plaintiff, which damages the decree in this case awards to him, or, in the language of such decree, “ the damages sustained by reason of being kept out of the possession ? ”

The general rule on this subject, as laid down by the elementary writers, and in the adjudged cases, is, that the Court of Equity will, so far as possible, place the parties in the same situation in which they would have been if the contract had been performed according to its terms; and to that end the vendor will be regarded as trustee of the land for the benefit of the purchaser, and liable to account to him for the rents and profits; and the purchaser will be treated as trustee of the purchase-money, if not' paid, and will be charged with interest thereon (2 Story’s Eq. Jur., § 789 ; Ery on Sp. Performance, § 889, and cases cited). And where the vendor is himself in the actual occupation of the premises, he is charged with the value of the use and occupation (Robertson v. Skelton, 12 Beav. 260; Dyer v. Hargrave, 10 Ves. 506).

But while this is the general rule, it is not inflexible. A Court of Equity moulds its relief and gives redress according to the circumstances of each case.

Where the purchaser has always been ready to pay, and has kept his money unappropriated, he is excused from the payment of interest (De Visme v. De Visme, 1 McN. & Gordon, 352: Regent’s Canal Co. v. Ware, 23 Beav. 575).

Where part of the purchase-money had been paid, the Cour sought to effect an equitable result by charging the vendor, not on]' with the rents, but with interest, from year to year, upon a cc- *105 responding portion of such rents (Burton v. Todd, 1 Swan. 255).

So where the subject of the purchase was a mill, and the delay of performance arose from the failure of the vendor to show good title, he was charged with the expenses of repairs and of keeping-up the mill and machinery until the purchaser could properly he required to take possession (Carrodus v. Sharp, 20 Beav. 56).

Some other qualifications apt to this case will be presently noticed. It is, however, clear, that in the endeavor to do equity between the parties, regard must he had to the special circumstances, wherever there are any peculiarities- which render the rigid application of any general rule unsatisfactory.

It is clear, in my judgment, that it is the endeavor to apply 'the general rule to the present case, without any qualification, and to treat the rule of damages as if it had been a question at law, and on an assessment in trespass for mesne profits, that has involved the question in apparent doubt, and wrought to the; Plaintiff apparent hardship.

Thus: he has purchased and paid — as required by the decree to-pay — $4,500 for the land, and while the use of the money has-been presumptively worth $315’ per annum, he has been kept-out of possession for more than twenty years, and has been permitted to recover, as damages for the loss of possession, $50 a year for two years, and interest thereon — less, in all, than: one year’s interest on the purchase-money.

It would he a matter of regret, if the rules, applicable to- the-subject are such that a Court of Equity cannot render more equal justice.

The present case is peculiar in two respects, viz.:: First, the purchase-money, with the interest thereon, was payabtej, and was-properly decreed to he paid, to the Defendant Prall, the original owner and vendor of the premises, who acquiesced in the decree^ and executed a deed, in obedience to its requirements, while the-possession, was held by the Defendant Munn; and second, the-principal value of the land consisted in the deposits of clay, *106 adapted, by the consumption thereof, to the manufacture of brick upon the premises.

The inapplicability of the general rule above stated to land of this description may be rendered quite apparent by an illustration closely analogous to the present. E. g\, suppose a sale of land of no value for ordinary use, because incapable of cultivation, and entirely unsuited to pasture, and yet, by reason of a bed of valuable ore, of very large value, and for that sole reason sold at a large price.

On a decree for specific performance, shall the purchaser be charged with interest on the purchase-money for the period during which he is kept out of possession, and the vendor pay nothing, because the rents and profits áre nothing, for depriving the purchaser of the opportunity of working the mine or ore-bed during the period of delay ? Or, if the purchase-money has been paid, shall the vendor, who has enjoyed the use of the purchase-money, have the advantage of his own wrong, and make no compensation to the purchaser for his loss of opportunity % The answer must be: Not so, unless the rules of equity are so imperfect that such injustice cannot be prevented.

Does it follow that the damages are to be ascertained by inquiring what profits the purchaser could have made by working the mine ? That question is, in substance, this — Was the referee right, on the first reference in the present case, in inquiring how much the Plaintiff might have received for the privilege of making brick on the land, thereby exhausting the bed of clay, which, in fact, now remains to him to be worked, presumptively with equal benefit, and thereupon allowing to the Plaintiff interest on such possible receipts, from year to year, as damages for the delay ?

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Bluebook (online)
38 N.Y. 137, 6 Trans. App. 100, Counsel Stack Legal Research, https://law.counselstack.com/opinion/worrall-v-munn-ny-1868.