Schoonover v. Ralston
Schoonover v. Ralston
Opinion of the Court
Opinion by
Joseph Potter and Alexander Ralston, on March 20, 1890, entered into an article of agreement in writing under the provisions of which the former agreed to sell and convey by “ a clear and lawful deed,” to the latter a tract of land containing one hundred and twenty-seven acres, more or less ; Ralston agreeing to pay for the property the sum of $900, one half to be paid the first day of May, 1890, and the other half the first day of May, 1891; the conveyance of the property to be made after the last payment. Joseph Potter died intestate in the month of August, 1891, and letters of administration upon his estate were issued to Schoonover on the 27th day of that month.
The administrator having presented his petition to the orphans’ court of Clearfield county setting forth the provisions of the written agreement between Potter and Ralston, that Potter died without having made any provision for carrying out the said contract, and that the petitioner desired to close up the transaction, prayed the court for a decree of specific performance of the contract. Ralston, the defendant, appeared in that proceeding and acquiesced in the making of the decree by filing a paper in the following language: “ Alexander Ralston, the purchaser of said lands, joins in the prayer of the petition and asks that it be granted; he further says that he is ready to carry out the said agreement on his part.” The orphans’ court granted the common prayer of the parties and on January 5,1898, decreed that “ it appearing that the said contract made by Joseph Potter and Alexander Ralston has been so far executed that it would be inequitable to rescind it and as spe
The administrator subsequently tendered to the defendant a deed in proper form, which the latter declined to accept and pay the purchase money. The administrator subsequently brought this action of ejectment, to enforce payment of the balance of the purchase money alleged to be due. The trial resulted in a verdict for the plaintiff, finding that there was a balance of purchase money unpaid amounting to $737.88, with interest from September 21, 1890 ; and a specific finding upon a question specially submitted to the jury, that “ Alexander Ralston, did have actual knowledge that the coal under the premises in dispute was sold prior to March 20,1890, by Joseph Potter to John G. Reading.” The court at the trial reserved the question whether the right of the plaintiff to recover must be totally defeated, for the reason that, prior to the contract with defendant, Potter had sold the coal, and, the defendant under the terms of his agreement being entitled to the coal, the administrator was unable to comply with the terms of the contract, and ought not to be permitted to collect the purchase money. The learned judge of the court below subsequently entered judgment in favor of the defendant non obstante veredicto.
The learned judge filed an opinion in support of the conclusion at which he arrived, and based his judgment upon the ground that the defendant was entitled to hold possession without electing to either affirm or rescind the contract, until he is made whole and restored to his former position, to wit: by being refunded the purchase money he has paid, and reimbursed for hnprovements made. The learned judge held, to put it in other words, that this administrator, because he could not convey all that the decedent had contracted for, must now tender the defendant all the purchase money that he had paid and the value of all his improvements, and that then, after all that has occurred, the defendant would still have a right of election to affirm or rescind his contract. We must hold that these parties have gotten far past the point at which any such rule could be applied.
The conclusion that the defendant must be held to have affirmed this contract does not necessarily imply however that he was precluded from defending as to the amount in which the consideration had failed. When a defect in title goes only to a part of the property, and that not the principal one, or an encumbrance involves only a fraction of the value, it may be compensated by a deduction from the purchase money: Stoddart v. Smith, 5 Binney, 355; Gans v. Renshaw, 2 Pa. 34. The fact that the defendant did not acquire anything of value which under the terms of the contract he was entitled to have would, if established by the evidence, constitute an equitable defense, arising out of the same contract and transaction upon which the plaintiff’s action was founded. Such a defense, if sustained
The judgment is reversed, and the record is remitted to the court below with direction to enter judgment for the plaintiff on the verdict.
Reference
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- Syllabus
- Vendor and vendee — Specific performance — Orphans’ court — Failure of consideration — Damages. Where two persons enter into an agreement in writing for the purchase and sale of land, with knowledge on the part of the purchaser that the coal under the land had been sold to another, but without any reservation of the coal in the agreement, and after the death of the vendor the latter’s administrator petitions the orphans’ court for specific performance, to which petition the purchaser assents and joins in the prayer thereof, the purchaser cannot thereafter refuse performance, and if an ejectment is brought against him, and he fails to show what, if any, coal is under the land, or the value of the coal, recovery may be had against him for the whole balance of the purchase money.