Zundel v. FARMERS UNION GRAIN COMPANY OF EDGELEY

79 N.W.2d 48, 1956 N.D. LEXIS 150
CourtNorth Dakota Supreme Court
DecidedOctober 25, 1956
Docket7564
StatusPublished
Cited by2 cases

This text of 79 N.W.2d 48 (Zundel v. FARMERS UNION GRAIN COMPANY OF EDGELEY) 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
Zundel v. FARMERS UNION GRAIN COMPANY OF EDGELEY, 79 N.W.2d 48, 1956 N.D. LEXIS 150 (N.D. 1956).

Opinion

SATHRE, Judge.

The plaintiffs bring this action for specific performance of an oral contract by the terms of which they allege that the defendant Farmers Union Grain Company of Edgeley, a corporation, agreed to sell and deliver possession to the plaintiffs a certain grain elevator building located on the railroad right of way in the town of Diesem, LaMoure County, North Dakota. The complaint alleges in substance that *50 on the 3rd day of July 1954 the defendant Farmers Union Grain Company by oral agreement sold to the plaintiff an elevator building known as the south elevator situated in the townsite of Diesem in the county of LaMoure, North Dakota for a consideration of $2,500 and on said date the plaintiffs issued a check for the said amount and received written receipt acknowledging payment of the purchase price. It is then alleged that the Grain Company violated the terms of the agreement and wrongfully refused to deliver possession of the elevator to the plaintiffs.

Judgment is then demanded that the defendant Farmers Union Grain Company be required to perform said oral agreement, accept the payment due under said terms thereof and to deliver possession of said elevator to the plaintiffs.

The defendant Farmers Union Grain Company answered and admitted that prior to July 15, 1954 it was the owner of the elevator building known as the south elevator at Diesem, North Dakota and that on July 3, 1954 it agreed to sell the elevator to the plaintiffs for the consideration of $2,500 and that plaintiffs delivered to it a check in payment of the purchase.

The answer further alleges that on or about the 8th day of July 1954 the plaintiffs stopped payment on the check for $2,-500 which they had delivered to this defendant; that plaintiffs thereby rescinded their agreement for the purchase of said elevator, and that thereafter the defendant returned the check to the plaintiffs; that the defendant Grain Company sold the said south elevator to the defendants Elmer Heim and Clarence Heim and that they are now the owners of the elevator and in possession thereof. Judgment is then demanded for dismissal of plaintiffs’ cause of action.

The defendants Elmer Heim and Clarence Heim interposed a separate answer alleging in substance the same facts alleged in the answer of Farmers Union Grain Company.

The action was tried in the district court, third judicial district, LaMoure County, North Dakota to the court without a jury. The trial court found for the plaintiffs and adjudged and decreed that upon payment by the plaintiffs to the Farmers Union Grain Company of the sum of $2,500 the said defendant was required to execute and deliver to the said plaintiffs a good and sufficient bill of sale to the said south elevator and that the defendants Elmer Heim and Clarence Heim surrender immediate possession of the elevator to the plaintiffs. From this judgment the defendant Farmers Union Grain Company appealed to this court and demanded a trial de novo.

There is very little dispute as to the basic facts in this action. On July 3, 1954, after previous negotiations between the plaintiffs and the defendant Farmers Union Grain Company, the said defendant sold to the plaintiffs the grain elevator located on the railroad right of way in the town of Diesem, LaMoure County, North Dakota at an agreed price of $2,500. On the same day the plaintiffs executed and delivered to the appellant grain company a check in the sum of $2,500 drawn on the National Bank of Jamestown, Jamestown, North Dakota and payable to the Farmers Union Grain Company of Edgeley, North Dakota. The check was introduced in evidence as plaintiffs’ exhibit 1. At the time of the delivery of this check the defendant Grain Company delivered to the plaintiffs a receipt, plaintiffs’ exhibit 2, which is as follows:

“Customer Copy

“Farmers Union Grain Co. of Edgeley

“Diesem, North Dakota

“7-3-1954

“Sold to — Joe & Edwin Zundel

1 Grain elevator at Diesem,

South Elevator $2500.00

“Rec’d Payment—

“Floyd McColm

“Walter Podoll, Sec’y No. 476”

*51 No bill of sale was delivered to the plaintiffs at that time because of the absence of the president of the Grain Company; but on his return on July 6, 1954, he signed the bill of sale and left it with the manager. It is not clear from the evidence whether the plaintiffs were to call for the bill of sale or whether the manager was to mail it to them.

There is no dispute as to the fact that at the time the sale was made to the plaintiffs there was stored in the elevator certain grain in which the Federal Government had an interest and that before delivery of the elevator could be made it would be necessary for the Grain Company to secure an order for removal of the grain. The Grain Company agreed to make shipment of the grain as soon as such order was received.

On July 7, 1954 the plaintiff Edwin Zundel went to the Bank at Jamestown, the bank on which the check for $2,500 was drawn and stopped payment thereof. On the evening of July 8th he met the secretary of the Grain Company and advised him that he had stopped payment of the check. As to the reason for stopping payment he testified as follows:

“Q. Will you tell the Court the conversation that transpired? A. Well, I told him that I was on my way to Fargo this morning, or the morning before, and I stopped at Jamestown and stopped payment on the check. And I told him that as long as we hadn’t had a bill of sale, or no contract, and they had all the money, that they could monkey around as long as they wanted to getting the elevator empty. And I said as soon as they get the elevator empty we will make the check good.”

At a meeting of the directors of the Grain Company on July 15, 1954, the defendants Elmer and Clarence Heim were present, and negotiations were had for sale of the elevator to them. On the following day, July 16, the defendant Grain Company agreed to sell the elevator to the defendants Heim Brothers for $2,500 and received a check of $500 as part payment. The defendant Clarence Heim testified that shortly before the directors meeting on July 15, Joe Zundel, one of the plaintiffs, told him that the plaintiffs had bought the elevator from the Grain Company, but that it was a wreck and that they paid too much for it.

The plaintiff Edwin Zundel testified that on July 21, 1954, he called the manager of the Grain Company and advised him that the check for $2,500 had been released, and that it would be paid upon presentation. The manager admitted receiving the telephone call, but denied that he was advised that the check was good and would be paid. On July 21, the check was returned to plaintiffs and was received by them the following day. Thereafter, and on July 30, 1954, the attorney for the plaintiffs sent to the manager of the Grain Company a bank draft in the sum of $2,500 and demanded delivery of possession of the elevator to the plaintiffs. It was received by the Grain Company but was returned immediately and received by the plaintiffs on July 31, 1954.

The question before us is whether upon the foregoing facts the plaintiffs are entitled to specific performance of the agreement of sale of the elevator in question.

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Cite This Page — Counsel Stack

Bluebook (online)
79 N.W.2d 48, 1956 N.D. LEXIS 150, Counsel Stack Legal Research, https://law.counselstack.com/opinion/zundel-v-farmers-union-grain-company-of-edgeley-nd-1956.