Payne v. Graves
Payne v. Graves
Opinion of the Court
The question is, whether Payne was entitled to a specific execution of the agreement. He purchased the land at public auction, and persuaded Graves the trustee, and Wright the debtor, to put him in possession under his purchase. He steadily refused, for many years, what he now asks for, a deed from the trustee with special warranty, under the pretext that lie was entitled to a covenant of general warranty from the debtor. He refused to pay the purchase money of the land, over and above the debt due to himself and the debts he had paid for Wright, and defeated the action of the trustee for the purchase money, on the ground that the agreement for the purchase of the land, being merely verbal, was void by the statute of frauds: and, after the lapse of more than thirteen years from the purchase, and after throwing every obstacle in the way of the trustee’s recovering the land in ejectment, he
The next question to be considered is, whether, in the state of the pleadings, the chancellor did right in directing an account to be taken of the rents and profits of the land, and in decreeing the balance found due by the commissioner against the plaintiff?
The plaintiff had purchased and obtained possession of the defendant’s land, and refused to pay him for it. The defendant sued him at law for the purchase money, and the purchaser defeated the action on the ground before mentioned. The defendant then brought ejectment, and after being twice defeated, at length, in the third suit, and after many years delay, obtained a verdict and a judgment, to recover back the land. But the plaintiff was not satisfied. Still holding the land, and the greater part of the purchase money, he brought the defendant into equity, and injoined him from- enforcing his judgment in ejectment, and from bringing a suit at law for the rents and profits. He is defeated in equity; he fails in obtaining a decree for the conveyance of- the land, and he now contends, that (although he has kept him in the court of equity for ten years more), all that this court can do, is to let loose the judgment in ejectment, and send back the defendant to a court of law to institute a new suit for rents and profits. I do not see the necessity for this course. Matters of account constitute a part of the jurisdiction of the court of equity; and it is a well established principle, that when that cqurt has once obtained possession of a subject, it will do complete justice by disposing pf the whole subject. It would be the most crying injustice to send the defendant back to a court of law, after he has been forced into a court of equity, and prevented by the plaintiff himself from prosecuting his suit at law for
It is alleged, however, that, admitting the subject to be within the jurisdiction of the court, the defendant ought to have filed his cross bill. I do not think so. The cross bill is a mode of defence, allowed to a party, to enable him to state his case more to his advantage than he could by answer, and need not be resorted to, unless a complete decree cannot be made without it. 1 Harr. Ch. Prac. 135. Mitf. Plead. 76. Coop. Eq. Plead. 85. Here, the defendant stands in no need of it; all that he asks for by his answer, is an account of rents and profits to be rendered by the plaintiff, and this simple requisition may be made in very few words. A complete deciee too can be made without filing the cross hill, and if the matter is so put in issue as that the opposite party can have an opportunity of defending himself, and of rendering a just account without it, there cannot be any necessity for incurring the expense and trouble of a cross hill, lief, us see then how this matter stands upon the pleadings between the parties.
A judgment in ejectment had been rendered in behalf of Graves, trustee for Wright, against Payne. The object of the bill was to restrain Graves from enforcing this judgment, and from bringing an action against him for the mesno profits, and to obtain a decree for a specific execution of the contract, by requiring the trustee to convey it with special warranty to him. The hill alleged, that Payne had bid two dollars per acre for the land, and had determined to give no more, hut that Wright had privately promised him, that if he would go further, he would give him a general warranty, and that in consequence of that promise, he bad the further sum of 5s. 11d. per acre. He, therefore, prays that he shouldhe relieved from the payment of that additional price; or, in the event that he should hereafter lose the land, he prays that he may have security, that the whole of the purchase money shall he refunded to him. That purchase money consisted, in one aspect, of the price of the laud at 12s. per acre; in the
When the case is fairly before the commissioner, the plaintiff has the same opportunity of defence against the set-off
The course here pursued is not witliout authority to support it. In tlie co.se of Parkhurst v. Van Cortlandt, 1 Johns. Ch. Rep. 274. chancellor Kent refused to execute the contract; and although the plaintiffs did not in their bill ask any relief on account of the improvements which they had put on tlie land, not looking to the alternative of losing it, yet the court directed an account to be taken between the parties, in which the plaintiffs were to be credited by a reasonable compensation lor beneficial and lasting improvements made by them on the land, and to be debited rvith the rent in arrear, and with reasonable rent for the time not agreed on by the parties.
In our case, the commissioner has reported a balance due from the plaintiff to the defendant. Was it right to render a decree for that balance in favor of the defendant ? I think it was. There are many cases in our own reports, in which it has been adjudged, that whore a bill is brought for an account, and a balance reported in favor of the defendant, the court will, decree in favor of the defendant for that balance. Hill & Braxton v. Southerland’s ex’ors, 1 Wash. 134. Fitzgerald &c. v. Jones, 1 Munf. 150. Todd v. Bowyer, 1 Munf. 447. This too is in conformity with the course of equity proceedings in England and Ireland, 1 Mad. Ch. Prac. 86. Bodkin v. Clancey, 1 Ball & Beatty 217. Nor can I doubt, that if on the report of the master in the case of Parkhurst v. Van Cortlandt, it had turned out, that tlie rents exceeded the value of tlie improvements, and that tlie balance was against the plaintiffs, the decree would have been rendered in favor of the defendant as the party entitled to the balance.
For these reasons, 1 am of opinion, that the chancellor did right in directing the accounts, and in decreeing in favor of the defendant. But there is an error in giving interest on the estimated rents and profits, and for this the decree should be reversed.
This is a bill for the specific performance of a contract for the sale of land. Wright owed Payne £ 22. and gave him a deed of trust of land to secure it. Graves was the trustee. A part of the land was sold under the deed, and Payne became the purchaser, at a price much exceeding his debt. He got into possession, but refused to receive a proper deed from the trustee, and pay the balance of the purchase money. The trustee sued for the money, and Payne defeated the action by relying on the statute of frauds; thus disavowing the contract, but still holding the land. The trustee then brought ejectment. He was non-suited twice; and when at length, after ten or twelve years, he recovered judgment, this bill was filed for a specific performance, and to inhibit any suit for mesne profits. Wright in the meantime had died. The trustee answered, stating the facts; and, in the close of his answer, he insisted, that as Payne had abandoned and disavowed the contract, but still continued to hold the land, he was liable for rents and profits, and he prayed an account of them. Much evidence was taken. The chancellor ordered the accounts. The commissioner reported a considerable balance against Payne, charging interest on the rents and profits; and for this balance, the chancellor rendered a decree. We are all agreed, that this is no case for specific execution; and equally agreed, that this decree must be reversed: but as to the grounds of reversal, and the subsequent order to be taken, I have the misfortune to differ with my brethren; they approving, in the main, the decree in favor of the defendant, but reversing because interest is given on the rents and profits; I believing that,.from the nature of this bill, and upon the state of the pleadings, we can decree nothing to the defendant, but should simply dismiss the bill, and leave the parties to their legal remedies. I shall, as briefly as I can, state the.grounds of my opinion.
Let us first ascertain exactly, what sort of a bill this is. It is said, this is a bill, not merely for a specific performance of the contract, but (in the alternative of its not being decreed) for the refunding of certain sums of money, which
Again, it is argued, that if Payne had paid the purchase money, and filed his bill for a specific execution, the court though it should refuse such execution, would decree the repayment of the purchase money. Standing upon this hypothesis, it is next contended, that upon the same principle, the court in this case (though refusing specific execution) might decree to Payne, the debt for which he had a lien on the land; but against this debt, it is said, the defendant would have a just right to set-off the rents and profits of the land, while held by the plaintiff; and to settle these matters it would be necessary to order an account, by which both parties being converted into actors, it becomes the duty of the court, not only to extinguish the debt for which the plaintiff took his lien, but to decree to the defendant, whatever amount (beyond such extinction) may be reported in his favor. Thus, by the ingenious process of assuming a first position, and then piling inference upon inference, the conclusion is at length reached, that upon a bill purely for a specific execution, without a prayer for any other relief, the court (refusing the relief prayed) may, of its own motion, or at the instance of the defendant, order an account, and render a decree against the plaintiff for whatever sum the report may shew to be due. To this conclusion my mind cannot come: it seems to me to violate the best settled rules of practice and pleading.
The plaintiff states his case in his bill; by that case, he must stand or fall. The defendant may demur, plead or answer; but it is to the case made by the bill; he cannot change that case. When the plaintiff makes a case for specific execution of a contract for the purchase of land, the defendant may shew that he has no right to the decree prayed; but he cannot by answer convert this bill into a bill for an account, and thus entitle himself to a decree for money against the plaintiff. If he had thought his case entitled him to such decree, he should have filed a cross bill, and thus taking the character of an actor, and stating the facts
Authorities are relied on in support of the principle on which the decree is founded. Let us examine them. Clinan v. Cooke, 1 Sch. & Lef. 22. That was a bill filed for the specific execution of a written agreement for a lease of land. The chancellor considered the agreement too uncertain to be decreed, and dismissed the bill, but decreed to the plaintiffs 50 guineas, which had been paid in part of the purchase money of the lease. But the case differed most materially from this. The written agreement expressly stipulated, that in case of failure to deliver peaceable possession, the plaintiffs were to have legal interest on the money they had deposited; and the bill prayed a specific performance, and, in case it should appear, that the defendant had put it out of his power to make a lease according to the agreement, that he should be decreed to make compensation to the plaintiffs ; and the defendant in his answer, confessed the receipt of the money, and said he had offered to return it. Here we see, that the bill had a double aspect; seeking specific execution if to be had, but if not, that the money paid might be decreed back. This put the fact of the 50 guineas paid, fairly in issue; and that fact was confessed by the answer. This is surely very different from the case before us, where the bill was filed solely with a view to specific performance, putting nothing else in issue, and where the facts on which the decree is founded are stated in the answer,—not responsive, but making a new and distinct case for an account. The chancellor too, in Clinan v. Cooke, admits, that as a general rule, the bill should be dismissed where a specific execution is refused; though, under the special circumstances of that case, he decreed for the money paid. Watt v. Grove, 2 Sch. & Lef. 492. 513. is also relied on, as shewing, that in the case of a bill brought for a specific performance, the court dismissed the bill, ordered an account, and directed the plaintiff to be charged with the rents and profits received by him. In my apprehension, the opinion I hold in the present case, receives the strongest sanction and
After the chancellor determined, that the prayer for specific execution had no foundation, the ground for equitable interference was, in my opinion, gone. Suppose A. files a
Many objections have been made to this decree. There is but one which seems material; and for that it must be reversed and sent back to the court of chancery, where some of the irregularities complained of, may most properly be corrected.
The plaintiff having purchased the land of one Wright, his debtor, under a deed of trust at the price of 17s. 11d. per acre, sets up a verbal promise made by Wright, that he would give him a deed with general warranty (instead of leaving him to depend on such title as the trustee would make), provided he would bid up the land to the above price, instead of 12s. which, he says, was the most he meant to give for the trustee title. This promise is directly within the meaning of the statute of frauds, and the circumstances of the case exemplify, very strongly, the wisdom of its provisions. For the attempt is by a bill in 1824, to set up this agreement of 1811, after Wright’s death, upon the allegation of a private understanding between the parties, not re
To avoid the effect of the statute, however, it is alleged, that the appellant had possession, which was a sufficient part performance. But the possession which has this effect must be referrible to the agreement set up, as all the later authorities prove. Rowton v. Rowton, 1 Hen. & Munf. 92. Heth’s ex’or v. Wooldridge’s ex’or, 6 Rand. 605. Sugd. Law Tend. 83.
It is said, indeed, that the agreement to which he pleaded the statute was the purchase from Graves, not the purchase from Wright. But to me it is obvious, that, admitting Wrighfs promise, it was only an additional term of the purchase made at the auction sale. Put that sale out of the case, and where could Payne get his title ? It never was designed-to set that aside, and to dispense with a conveyance by the trustee. The object of Payne was to procure that, and to have a warranty also from Wright.
The decree, however, is wrong in allowing interest on the rents, and in decreeing the balance thus created against the plaintiff. It must, therefore, be reversed, and sent back for further proceedings, with instructions to credit the annual rents against the principal and interest of the plaintiff’s demands, according to the usual course of the court, until the same shall be discharged ; and then the residue of the rents are to be decreed, but without interest, to be paid into court for the benefit of the representatives of the decedent Wright, when they shall have been ascertained by proper proceedings.
To this opinion I incline upon the two principles of equity, that when it takes jurisdiction of a matter, it will dispose of the whole subject, and that it delights in an end of litigation and in preventing a multiplicity of suits, I take it, that where a bill is filed to carry a contract into execution, the plaintiff having paid a portion of the purchase money, if the court refuses the specific execution on the ground of the statute of frauds, or otherwise, it may, and generally will, decree repayment of the purchase money to the plaintiff. Thus in Clinan v. Cooke, 1 Sch. & Lef. 22. where the plaintiff filed his bill for specific execution of an agreement for a lease, towards which he had paid 50 guineas, the court decreed, that though the bill must be dismissed as to the performance of the agreement for a lease (because within the statute of frauds), yet the plaintiff should have a decree for his 50 guineas and interest. And this too, uotwithstand
If, then, in the present case, Payne had paid the purchase money, I think we should be sustained in the position that it should be decreed to him. For a refusal to carry the contract into execution, in such a case as this, amounts to an annulling of the contract, and the court should replace the party in the condition in which he would have been had not the imperfect contract been made. See Ld. Pengall and Ross, 2 Eq. Ca. Abr. p. 46. pl. 13. where upon a bill for specific performance, though the relief asked was refused, the court decreed £ 100. which had been paid, to be refunded.
Lastly, if an account be directed, and the balance is found in favor of the defendants, shall they not have a decree for it? I have shewn, I think, that the. account was properly directed. If so, then, as to that account, both parties were actors; and if so, the balance may be decreed to the defendant, if it appears to be in Iris favor. Indeed, it seems to me, that it would be most extraordinary, after taking the account, to allow just so much only as would pay the plaintiff’s debt, and then leave the defendant to his uncertain remedy for the residue.
For these reasons, I am of opinion to enter the decree I have suggested.
concurred. And a decree was entered, declaring, that there was no error in the decree of the court of chancery, in refusing to enforce the alleged parol agreement for a conveyance with general warranty, or to rebate 5s. 11d. per acre in the price of the land : nor was there any error in refusing a specific execution of the contract of sale as made by the trustee Graves, inasmuch as it was not asked, and seemed to have been disclaimed by the appellant: nor was there any error in decreeing an account, and that the rents and profits accruing during the appellant’s possession should be set-off against his demands against
But it was not reversed on this point. The supreme court held, that the plaintiff was entitled to a specific execution.
Phil. edi. of 1820.
In Sugd. 88. it is said, this case cannot be found in the register. I presume, however, it is not because it never was decided, but because the names or dates have been mistaken. Note by the judge.
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