Hemlani v. Villagomez
Hemlani v. Villagomez
Opinion of the Court
OPINION
OPINION
Defendant appeals from the trial court's judgment granting plaintiff $18,000 (plus interest) for the refund of payment on defendant's property and for improvements made on the defendant's property. For the reasons set down below, we affirm.
I. FACTS
In 1970, plaintiff, a non-Trust Territory citizen, entered into an "Agreement to Purchase Real Property" (Agreement) with defendant, a Trust Territory citizen for the purchase of defendant's property for $5,000. Paragraph three of the Agreement provides that should the existing law change allowing ownership of lands in the Northern.Mariana Islands to non-Trust Territory citizens, defendant will transfer title of the property to plaintiff. See 57 Trust Territory Code § 11101.
II. THE REFUND OF $5,000
The trial court found that the $5,000 paid by the plaintiff to the defendant for the'purchase of the land was governed by paragraph four of their Agreement., Said paragraph provides:
If for any reason the Seller is unable during the term provided in paragraph 6 Level,2 [sic] to convey the said land to the Buyer then the Seller hereby agrees to refund to the Buyer all money paid by the Buyer in accordance with the terms of this instrument without interest.
Defendant's inability to convey his land to the plaintiff is due, of course, to the restriction on alienation of land mentioned earlier. See footnote 1 above.
The trial court concluded that the indefiniteness of the transferring of title to the land as provided for in paragraph 3 three of.the Agreement cannot be sanctioned by the court.
We not agree with the Defendant's assertion that the trial court found the entire Agreement to be "illegal and unenforceable" or "void." Nowhere in the record do we find this assertion to be correct. To the contrary, the trial court upheld the validity of the Agreement by giving force and effect to paragraph four. In effect, the trial judge concluded that the provisions of the Agreement were divisible and the unen-forceability of one provision did not void the whole agreement. We hold that the trial court correctly applied the doctrine of divisibility to Che facts of this case.
III. THE IMPROVEMENT ON THE PROPERTY
Defendant argues that the trial court erred in awarding plaintiff compensation for his expenses in building the concrete
The trial judge's resolution of this problem by returning to plaintiff what he has invested but excluding profits; and permitting the defendant to take advantage of the profit earned by the plaintiff's investment (i.e., the appreciation in present market value of the building) plus the return of his land was a reasonable one. We will not interfere with the trial judge's discretion, unless clearly abused, to fashion a remedy where equity is involved.
IV. PREJUDGMENT!INTEREST
Defendant also argues that prejudgment interest was erroneously granted. Prejudgment interest is discretionary and is not prohibited by 8 T.T.C. § 1.
We agree with the trial judge that the interest should commence to run on April 25, 1978, the day the initial lawsuit was filed, albeit in the wrong court. It was at least
For the reasons discussed above, we hereby AFFIRM the trial court's judgment.
DATED: ALF LAURETA, Chief
57 T.T.C. § 11101, as it applies to Marianas, is super-ceded by Article XII of the Commonwealth Constitution which restricts acquisition of land to persons of Northern Marianas descent, and plaintiff does not qualify thereunder.
Paragraph 6 provides:
This agreement shall run for a period of ( ) year [sic] may not be rescinded except by mutual agreement of all parties hereto.
The expiration period was left blank since the parties did not know when, if ever, the restriction on alienation of land will be lifted.
The trial judge stated;
The Court cannot accept Defendant's theory that we should wait another twenty years to see if the law is changed so Defendant can transfer title. Nor can the Court accept plaintiff's . . . argument that the Plaintiff be placed back into possession indefinitely to see if the law is changed. Both of these 'remedies' are open end and constitute nothing more than judicial procrastination. In addition the Court would be participating in a circumvention of existing law and in effect approving a long tens interest [for the plaintiff]
Judgment at 3.
Paragraph five contained the following provision:
5. Upon the execution of this Agreement, the Buyer shall have full authority to enter the ^bove-described land; to clear the same; the [sic] survey; to improve; to fence, to erect any structure thereupon as he (Buyer) shall determine desirable; and to use the said land for any prepare [sic] permitted by the law. Provided, however, that all expenses incurred by the Buyer in connection with the use of the above-described area option hereunder shall be for the account of the Buyer and the Buyer shall hold the Seller harmless for any and all charges that may be incurred.
The paragraph reads:
2. That the existing building of the subject premises is.presently owned by the Buyer.
8 T.T.C. S 1 provides:
Every judgment for the payment of money shall bear interest at the rate of Nine Per Cent' . (97.) a year from the date it is. entered.. ‘
Reference
- Full Case Name
- P. D. HEMLANI v. RAFAEL G. VILLAGOMEZ
- Status
- Published