Godfrey v. Rosenthal
Godfrey v. Rosenthal
Opinion of the Court
This is an action to recover damages alleged to have been sustained by the plaintiff by reason of the breach of an agreement on the part of the defendant Rosenthal to convey to him certain real estate in the city of Deadwood. The complaint set out. the agreement between the plaintiff and the defendant Rosenthal, dated June 6, 1900, on which the action is based, and in which it was recited that the plaintiff
The defendant seeks a reversal of the judgment of the court below upon the following grounds: (1) That there was no breach of the contract shown;' (2) that the court erred in its refusal to admit in evidence the record of the $15,000 mortgage; (3) that the court erred in its refusal to admit in evidence the record of the action for specific performance instituted by the plaintiff against the defendant Rosenthal, and the judge-, ment therein; (4) that the court erred in its instruction to the jury given at the request of the plaintiff. In the view we take of the case, it will only be necessary to consider the second ground upon which a reversal is sought, namely, that the court erred in its refusal to admit in evidence the record of the $15,000 mortgage. The record of the mortgage offered in, evidence tended to prove that, so far as the record disclosed, the plaintiff’s property was in fact incumbered, or apparently so, by the $15,000 mortgage of one Thayer.
It is shown by the undisputed evidence that at about the time the Rosenthal deed was to be delivered, November 26, 1900, it was agreed between the- plaintiff and appellant that appellant Rosenthal should institute an action in the name of the plaintiff and Mr. Nelson to cancel said mortgage, and appellant thereupon brought the action resulting in a judgment
Section 2347 of the Revised Civil Code provides: “An agreement for the sale of property cannot be specifically enforced in favor of a seller who cannot give to the buyer a title free from reasonable doubt.” If the specific performance could not be enforced for the reason that there was an apparent cloud upon the title by which the title was not free from reasonable doubt, the purchaser would not be under obligations to accept such title, and would not subject himself to an action for damages for refusing to accept until the same was perfected and the cloud removed. Black Hills National Bank v. Kellogg, 4 S. D. 312, 56 N. W. 1071. And the rule laid down by our Code seems to be the general rule. In 22 Am. & Eng. Enc. of law, 948, the rule is laid down that “the vendor must be ready and able to convey, a marketable title, which has-been defined to be a title that is free from reasonable doubt to all the land he has bound himself to sell.” It is further said in a note: “A marketable title is one -that is free from reasonable doubt. The purchaser is not compelled to take property the possession of which he may be compelled to defend by litiga
Upon what theory the court excluded the record of the mortgage we are not advised, but, if it was upon the theory that the mortgage was barred by the statute of limitations, the court clearly erred. The court was not authorized to say, in view of the provisions of the statute of limitations of this state, that the mortgage was barred by the statute, or did not constitute a cloud upon the plaintiff’s title. The question as,to whether or not a mortgage is barred by the 10 .years’ or 20 years’ statute of limitations has not been settled by any decision of this court, and cases are now pending before it in which it is claimed on one side that a mortgage under seal is only
If the court excluded the evidence of the record of the mortgage on the ground that the contract did not call for a warranty deed on the part of the plaintiff, it was equally an error as the evidence clearly shows that the plaintiff repeatedly assured Rosenthal, in answer to his inquiries, that the title was free and clear from all incumbrances except the paramount title of the United States. This representation was clearly untrue, as shown by the record of the mortgage offered in evidence. When Rosenthal discovered that the representations were untrue, he had the right to withhold his deed until the incumbrances appearing of record should be removed, and the plaintiff was entitled to no damages for the delay in delivering the deed while the incumbrance still appeared of record. In discussing a similar question the Supreme Court of Missouri concludes as follows: “We do not think the fact that the defendants were to take a quitclaim deed is of any controlling importance. Fry says: ‘The circumstance that the vendor
In any view of the case, therefore, the exclusion of the record of the mortgage was clearly error, and for this error the judgment of the circuit court must be reversed, and it is so ordered. ' ' ,
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- 1. Plaintiff and defendant contracted for an exchange of property, the ' former to convey mining property and the latter to convey a lot. The deeds were to he delivered on plaintiff receiving the receiver’s certificate for his property. After the issuance of the certificate, defendant under the agreement, instituted a suit in plaintiff’s name, and at his expense, for the removal of a cloud on the title of the mining property, obtaining a decree for its removal. Thereafter defendant delivered his deed conveying the lot.’ Held that, as the delay in the delivery of the deed from the date of the receivers certificate to the date of the decree removing the cloud was assented to by plaintiff, he. could claim no damages therefor, nor for any further delay in the delivery of the deed, without showing that he sustained damages. 2. Under Rev. Civ. Code, § 2347, providing that an agreement for the sale of property cannot be specifically enfot ced in favor of a seller who cannot give a title free from reasonable doubt, a purchaser of real estate does not subject himself to an action for damages for refusing to accept the same while there is an apparent cloud on the title, so that it is not free from reasonable doubt.. 3. In an action for damages for the breach of a contract for the exchange of real estate, occasioned by defendant’s failure to convey, the existence of an outstanding mortgage on plaintiff’s- property was a defense; the question as to whether the mortgage was barred by limitations being an open question, audit also depending on other considerations, siich as part payment, payment of interest, etc. 4. In’ an action for damages for the breach of a contract for the exchange of real estate, occasioned by the failure of defendant to convey, the existence of an ontstanding mortgage on plaintiff’s property is a defense, where it was shown that plaintiff assured defendant that the title was free from incumbrances, though the contract did not call for a warranty deed from plaintiff.