Flint v. Conner
Flint v. Conner
Opinion of the Court
This is an action to recover possession of a lot of land, with the dwelling-house thereon, and certain personal property, consisting of household furniture. From a judgment in favor of plaintiff, defendant appeals.
Plaintiff and defendant entered into an oral agreement whereby the former agreed to sell and the latter agreed to buy the property, real and personal, for the sum of $17,250. Pursuant to such oral agreement, plaintiff and wife signed two instruments, one purporting to be a deed to the lot and the other a bill of sale of the personal property. Neither instrument named any grantee or purchaser. On June 4, 1919, plaintiff delivered the instruments to the Title Insurance and Trust Company of Los Angeles as escrow-holder, at the same time filing written escrow instructions authorizing the escrow-holder to deliver both instruments “to parties in interest or their representatives, upon payment to you, within twenty days from date hereof, for my account, the sum of $17,250.” On July 2, 1919, the following, over *281 plaintiff’s signature, was written at the bottom of the original escrow instructions: “The time limit of this escrow is hereby extended to & including July 17, 1919.” No grantee or purchaser is described by name in the escrow instructions. The only words in the writings signed by plaintiff to which resort might possibly be had to identify the intended grantee or purchaser are the words of the escrow instructions, “parties in interest or their representatives.” We have serious doubt as to the sufficiency of these words to meet the requirements of the statute of frauds. In order to ascertain who are the “parties in interest,” it would be necessary to receive oral evidence as to which there might be a possible conflict. In Potter v. Duffield, L. R. 18 Eq. 4, the master of the rolls, speaking of a memorandum that described the seller as “vendor,” said: “If you could go into evidence as to the person who is described as ‘vendor,’ the answer would be that Polly was that person. But that is exactly what the Act says shall not he decided hy parol evidence.” However, it is not necessary for us to decide whether, in the instant case, there was a valid contract under the statute of frauds. For if, as we shall assume, the writings do satisfy all the requirements of the statute, nevertheless, for reasons presently to be given, defendant is not entitled to withhold possession from plaintiff.
Shortly after the oral agreement to sell, plaintiff caused the key to the premises to be delivered to defendant, who thereupon entered into possession. Defendant testified that during the oral negotiations he asked plaintiff for immediate possession and that plaintiff agreed thereto. Plaintiff’s version of what was said during the negotiations leaves it doubtful whether the delivery of possession to defendant prior to payment of the purchase price was regarded by either as any part of the consideration moving from plaintiff to defendant for the agreed purchase money. But, be that as it may, we think that, for reasons to be stated, plaintiff was entitled to recover the property even if the contract did give defendant the right of possession prior to the time when the deed was to be delivered to him upon payment of the purchase price.
According to the testimony adduced by plaintiff, defendant promised unconditionally to pay the $17,250 within twenty days from June 4, 1919, and nothing was said about *282 the source whence defendant should obtain the money. Defendant, on the other hand, testified that he told plaintiff that he had, or expected to have, some money in escrow with the Title Insurance and Trust Company, and that from that source he would get the purchase money for the lot and furniture and thus pay plaintiff. He testified that he told the escrow-holder’s agent, a Mr. Geller, in plaintiff’s presence, that “I am paying a certain amount of money, $17,250, which was to be paid out of funds coming under my control in this escrow”—referring to an escrow to which plaintiff was not a party. It thus will appear that, according to defendant’s theory of the case, his only obligation was to pay the purchase price out of a particular fund, namely, the money that he expected would come under hi’s control in a certain escrow, and which thus would be available for the payment of the purchase money. According to the uncontradicted evidence of Geller, no fund was ever in escrow available for the payment of the purchase money. Geller, who handled the escrow as an employee of the Title Insurance and Trust Company, testified: “There were never any moneys deposited with the Title Insurance and Trust Company in connection with this escrow which were paid over to Mr. Flint or to his account, nor were there any funds available in this escrow for that purpose.” Plaintiff has never received from defendant a son marque, or any consideration of any kind whatever.
On September 2, 1919, which was two weeks prior to the commencement of the action, plaintiff served on defendant a written notice and demand, whereby he notified defendant that, by reason of the latter’s failure to comply with the conditions of the contract, plaintiff had withdrawn the instructions from escrow; that defendant’s opportunity to acquire title to the property by compliance with the conditions of the escrow instructions had long since been forfeited; and that, by the withdrawal of the escrow instructions, plaintiff had terminated whatever rights defendant might have had to pay the purchase" price of the property and acquire title thereto. By this same instrument, plaintiff demanded that defendant quit and deliver up the possession of the property, and notified defendant that if he failed to do so within three days, action would be commenced. to recover possession.
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Appellant, though he has paid no part of the agreed purchase price, and doubtless never will be able to pay it from the source which he claims was to be the sole source whence he was to acquire the money, nevertheless claims the right to remain in possession of respondent’s property. His position really is that, under his view of the contract, he may indefinitely keep possession of the property while refusing to make payment of the purchase money. It would be a woful injustice if he could do this, and we do not think the law sanctions such a result. Appellant’s theory seems to be substantially this: The contract gives him the right of possession pending the time when the purchase money should be paid and the deed delivered; time was not made of the essence of the contract; therefore a mere failure to pay the purchase price when due does not entitle his vendor to a recovery of possession. The authorities are not agreed as to whether a mere failure to pay, without notice to quit or demand of possession, will sustain the action. (See
Browning
v.
Estes,
3 Tex. 462, [49 Am. Dec. 760].) It is, however, thoroughly established in the jurisdictions where a notice to quit is necessary that a failure to pay within a reasonable time after such notice entitles the vendor to sue for the recovery of possession. In
Fears
v.
Merrill,
9 Ark. 559, [50 Am. Dec. 226], the court said that “a vendor who executes a bond for title to his vendee upon the payment of the purchase money at a future day, and puts him in possession, may, if the money is not paid when due, by first giving to the vendee reasonable notice to quit, avoid his contract and maintain an action of ejectment for the land.” But it is not necessary to decide the case upon the theory that there has been a mere failure to pay the purchase money, and appellant errs when he assumes that he has done no more than merely fail to pay the purchase money as and when it fell due. If, as testified by respondent, as found by the court and as indicated by respondent’s written escrow instructions, appellant’s contract was an unconditional agreement to pay the full amount of $17,250 within twenty days from June 4, 1919, or within the subsequently granted extension of time to July 17, 1919, then, instead of merely failing to pay, appellant has
refused
to pay. For the evidence shows that, though importuned to pay the purchase price after the expiration of the time granted by re
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spondent in his escrow instructions, appellant refused to do so save out of a phantom fund that never has assumed form or shape and which he must have known ever will he a thing of unsubstantiality.
If the contract were as testified to by appellant, the result would be the same; for it is apparent from the testimony given by the witness Geller that there is no likelihood that any money will ever be in escrow available for payment of the purchase price of respondent’s property. If Geller’s testimony be believed (and in support of the judgment we must assume that the trial court accepted it as true), then there has been a total failure of consideration, and respondent, therefore, was entitled to rescind his contract to sell. This he did when he served the written demand and notice on appellant two weeks before commencing the action.
Judgment affirmed.
Works, J., and Craig, J., concurred.
Reference
- Full Case Name
- FRED W. FLINT, Jr., Respondent, v. W. J. CONNER, Appellant
- Cited By
- 8 cases
- Status
- Published