Somerville v. Jacobs
Somerville v. Jacobs
Opinion of the Court
The plaintiffs, W. J. Somerville and Hazel M. Somer-ville, herein sometimes referred to as the plaintiffs, the
The circuit court considered the matter upon motions of the defendants for judgment in their favor; the separate answers and the counterclaims of the defendants; the interrogatories and the answers to the interrogatories; the depositions of the defendants; an agreed statement of the facts by all parties; and the respective motions of the plaintiffs, the Somervilles, and the defendants for summary judgment.
By final judgment rendered June 11, 1968, the circuit court required the defendants within 60 days to elect whether they would (1) retain the building and pay W. J. Somerville $17,500.00 or suffer judgment against
This case was submitted for decision upon the record of proceedings in the trial court and the briefs and the oral arguments in behalf of the defendants. The brief in behalf of the plaintiffs, not having been filed within the time required by the provisions of Rule VI of this Court and the defendants having refused to waive the requirement of the rule, oral argument in behalf of the plaintiffs was not permitted upon the submission of the case.
As previously indicated the material facts, which are not disputed, were stipulated and set forth in the agreed statement of the attorneys representing the parties, and the questions presented for decision are questions of law.
The stipulation concerning the facts is in-this form:
“1. The plaintiffs, W. J. Somerville and Hazel M. Somerville, in mistaken reliance upon a surveyor’s report and plat, constructed the building described in the complaint upon Lot No. 47 of Homeland Addition to the City of Parkersburg, in Wood County, West Virginia, believing that they were constructing the building upon Lot No. 46 of said addition.
“2. Lot No. 47 was and still is owned by the defendants as joint tenants with the right of sur-vivorship, title to said Lot No. 47 having been acquired by William L. Jacobs and Marjorie S. Jacobs by Deed dated February 21, 1966, and duly admitted to record in the Office of the County Clerk of Wood County, West Virginia, on March 14, 1966, as appears of record in Deed Book 513 at Page 317.
“3. The defendants were not aware of the fact that said building had been constructed on their property until after the completion of said building by the plaintiff, W. J. Somerville, its purchase by the plaintiffs, Fred C. Engle and Jimmy C.*616 Pappas, and its occupancy as a tenant by the plaintiff corporation, Parkersburg Coca-Cola Bottling Company.
“4. The fair market value of said Lot No. 47 immediately prior to the erection of said building was $2,000.00.
“5. The fair market value of said Lot No. 47 immediately subsequent to and by reason of the erection of said building was $19,500.00.
“6. By deed dated January 14, 1967, the plaintiffs, W. J. Somerville and Hazel M. Somerville, who are husband and wife, conveyed to the plaintiffs, Fred C. Engle and Jimmy C. Pappas, Lots 44, 45 and 46 of said Homeland Addition under the mistaken belief that the warehouse building described in the complaint was situate on Lot 46, for a total purchase price of $19,500.00, and the plaintiffs Engle and Pappas paid the plaintiffs, W. J. Somerville and Hazel M. Somerville the said sum of $19,500.00 under the mistaken belief that said warehouse was situate on said Lot 46.
“7. The plaintiffs, Fred C. Engle and Jimmy C. Pappas, leased the said warehouse building to the plaintiff, Parkersburg Coca-Cola Bottling Company beginning as of January 1, 1967, and continuing up until the time of the filing of this action for a monthly rental of $250.00, that being the fair rental value of said warehouse building.
“8. Since the filing of the above styled action, the plaintiff, W. J. Somerville, has constructed on said Lot 46 a warehouse building identical with the one previously constructed by him on said Lot 47 and the plaintiff, Parkersburg Coca-Cola Bottling Company is now occupying said building as a tenant and paying to the plaintiffs, Fred C. Engle and Jimmy C. Pappas the sum of $250.00 as a monthly rental on said premises pursuant to the terms of the lease to which reference is hereinabove made.”
The controlling question for decision is whether a court of equity can award compensation to an improver for improvements which he has placed upon land not owned by him, which, because of mistake, he had reason to
Though there are numerous decisions by this Court relating to improvements to land, the precise question here involved is one of first impression in this jurisdiction. The statute dealing with allowance for improvements to real estate, Article 5, Chapter 55, Code, 1931, provides for allowance for improvements only to a defendant against whom a decree or judgment shall be rendered for land where no assessment of damages has been made and permits such defendant, at any time before the execution of a decree or judgment, to present a petition to the Court rendering such decree or judgment praying that he may be allowed the fair and reasonable value of such improvements. That statute has no application to the facts of this case, and this case, for that reason, is not within the statute. Green v. Mullins, 146 W. Va. 958, 124 S. E.2d 244.
Though the precise question here involved has not been considered and determined in any prior decision of this Court, the question has been considered by appellate courts in other jurisdictions and though the cases are conflicting the decisions in some jurisdictions, upon particular facts, recognize and sustain the jurisdiction of a court of equity to award compensation to the improver to prevent unjust enrichment to tie owner and in the alternative to require the owner to convey the land to the improver upon his payment to the owner of the fair value of the land less the improvements.
In the early case of Bright v. Boyd, 1 Story 478, 4 F. Cas. 127, (No. 1875) and 2 Story 605, 4 F. Cas. 134, (No. 1876), a Federal trial court held in an opinion by Justice Story
In the early Kentucky case of Thomas v. Thomas’ Executor, 55 Ky. (16 B. Mon.) 420, the court recognized the equitable principle that one who acquires title to land bona fide, and enters upon and improves it, supposing it to be his own, is entitled to compensation for improvements.
In the leading case of The Union Hall Association v. Morrison, 39 Md. 281, a plaintiff who claimed title to a small lot, entered by mistake into possession of other land in the neighborhood of such lot and erected on such land a valuable building and who, after having been ousted from the possession of the land in an action by its owner, instituted a suit in equity for compensation for the improvements. In that case the court held that although there was nothing in the conduct of the defendant owner which created an equitable estoppel as he had been ignorant of his rights, the plaintiff, whose good faith was beyond question, had an equitable right to compensation for the improvements; that the defendant should have the option of accepting from the plaintiff payment for the lot for its value without the improvements and conveying the lot to the plaintiff, or of holding the lot with the improvements upon payment to the plaintiff their actual value to the extent that they enhanced the value of his lot, and that the plaintiff was entitled to a lien for the value of the improvements and, upon default in the payment for such improvements, the property should be sold to enforce such payment. In discussing the relief to which the plaintiff was entitled the opinion contains this
In the earlier case of McKelway v. Armour, 10 N. J. Eq. (2 Stock.) 115, 64 Am. Dec. 445, cited and discussed in The Union Hall Association case, the plaintiff by mistake built a valuable dwelling-house upon the defendant’s adjoining lot instead of his own. Though the defendant saw the plaintiff building on his land, he did not know or suspect that the building was being erected on his land but thought it was being erected on the land of the plaintiff. The Court of Chancery of New Jersey held that the plaintiff was entitled to relief and required the defendant, within twenty days, to pay for the improvements at a valuation to be fixed by the court, or to convey the lot to the plaintiff at a valuation to be fixed by the court. Though the McKelway case is discussed and criticized in the later case of Kirchner v. Miller, 39 N. J. Eq. 355, and in the decision of this Court in Cautley v. Morgan, 51 W. Va. 304, 41 S. E. 201, discussed later in this opinion, the McKelway case was not “substantially overruled” by the Kirchner case, as mistakenly stated in the opinion in the Cantley case. Instead, the McKelway case was distinguished from the Kirchner case by this language in the Kirchner case: “To warrant the interference of equity in favor and upon the application of the person who has expended his money upon another’s land, there must obviously be some hardship against which he
In the McKelway case the complainant and the defendant were owners of adjoining town lots. The complainant employed a surveyor to fix the dividing line between the lots, which the surveyor, by mistake, mis-located. The complainant supposing that he was building upon his own land, inadvertently placed a small part of his house a few inches on the lot of the defendant who at the time was unaware of the encroachment. In the Kirchner case the court said that the complainant could remove part of his building from defendant’s lot at a cost of $75.00, that the complainant, after he discovered the encroachment, offered to buy the strip of land or to give the defendant a strip of equal width from his adjoining lot on the other side but the defendant rejected the two offers and instead offered to settle the matter by selling his entire property to the complainant for $2200.00 or by leasing the occupied strip of land, which was worth $50.00, at a rental of $60.00 per year. The relief sought by the complainant was an injunction to enjoin the prosecution of an action of ejectment in which the defendant sought to recover possession of the occupied strip. The court held that equity would not enjoin an action of ejectment by the defendant against the complainant to recover possession of the strip of land and dismissed the bill of complaint with costs.
In Hardy v. Burroughs, 251 Mich. 578, 232 N. W. 200, plaintiffs’ bill of complaint alleged that the plaintiffs constructed on Lot 234 of Carton Park in Flint a dwelling house, that the lot was owned by the defendants Bur
In Olin v. Reinecke, 336 Ill. 530, 168 N. E. 676, it appeared that one of the plaintiffs, by mistake, after purchasing a lot in an addition, constructed improvements on another lot purchased by a defendant who placed title to the lot in another defendant. Though the defendants saw the improvements while they were being made they asserted that they did not know they were being made on their property until after they were completed. There was no finding of fraud or estoppel upon the part of the defendants although the court in the opinion stated that it was difficult to believe that the defendants did not know that the plaintiff had built the house on the wrong lot until after it was completed. The court held that the plaintiff, who had improved the defendant’s lot by mistake, was entitled to a decree which required the defendant to pay the reasonable value of the improvements, or in case of failure or refusal to do so, the property should be sold and the proceeds distributed to the payment of the cost and expense of sale, to the defendant for the value of the lot, to the holders of mortgage notes, and to the plaintiff.
In Pearl Township v. Thorp, 17 S. D. 288, 96 N. W. 99, the township desired to sink an artesian well on a tract of two acres of. land which it owned. It had the land surveyed and the surveyor placed a stake to indicate the place where the well was to be sunk. Some unknown person removed the stake and placed it on adjoining land owned by Nelson which was several feet from the
In McCreary v. Shields, 333 Mich. 290, 52 N. W.2d 853, the court held that, to prevent the unjust enrichment of its owners, the owners of the lot on which a house was constructed by mistake should have the privilege of taking the improvements at their fair value or of conveying the property to the builders at its fair value and that if the owners of the lot on which the house was constructed by mistake refuse to take the improvements or to convey the lot at a fair value, conveyance of the lot to the builders of the improvements may be decreed upon payment of its fair value.
In Schleicher v. Schleicher, 120 Conn. 528, 182 A. 162, 104 A. L. R. 572, the Connecticut Supreme Court of Errors held that one who, believing himself to be the owner of realty, has in good faith made improvements or expenditures upon such property, is entitled on equitable principles to reimbursement by the true owner, of the amount to which the value of the property has been enhanced by such improvements or expenditures. In recognizing the right of the plaintiff to recover and in granting recovery, the -court said “Any right of the plaintiff to recover must be based upon principles involved in the doctrine generally referred to as that of ‘unjust enrichment.’ A right of recovery .under that doctrine is essentially equitable; its basis being that in a given situation it is contrary to equity and good conscience for the defendant to retain a benefit which has come to him at the expense of the plaintiff. The right of one who believes himself to be the owner of property to recover of the true owner the amount in which its value has been enhanced by improvements or expenditures the former has made in
In Voss v. Forgue, Fla., 84 So. 2d 563, the court held that where a landowner mistakenly constructed a dwelling on a lot adjacent to one he owned and the two adjoining lots were substantially the same in value and the landowner was innocent of wrongdoing and the adjacent landowner was not shown to have been harmed, equity at the suit of the first landowner compelled both landowners to exchange deeds to their respective lots, upon payment by the first landowner of a certain sum and court costs. In the opinion the court said:
“We have not before been called on to adjudicate this point but investigation reveals respectable authority both ways, depending largely on the circumstances and the equities shown in the particular case. Our attention is directed to what appellant contends to be the majority rule in 104 A. L. R. 580, as follows:
“ ‘In a bare majority of the jurisdictions of this country wherein the question has clearly received consideration, support has been given to the rule that, not even in equity can one who has made improvements on the land of another, believing himself to be the owner, recover therefor, as plaintiff, where the owner has been guilty of no fraud, or acquiescence with knowledge, or other inequitable conduct.’
“Appellant also calls our attention to what he contends the same authority (104 A. L. R. 588) designates as the minority rule as follows:
“ ‘Even in the absence of fraud, acquiescence with knowledge, or other inequitable conduct on the part of the owner of land, one who, mistakenly believing himself to be the owner, in good faith makes improvements on premises, may, as plaintiff, recover therefor, by way of lien or otherwise, where the circumstances render such relief just and equitable.’ ”
In the recent case of Beacon Homes, Inc. v. Holt, 266 N. C. 467, 146 S. E.2d 434, the court said in the opinion: “It is as contrary to equity and good conscience for one to retain a house which he has received as the result of a bona fide and reasonable mistake of fact as it is for him to retain money so received. We, therefore, hold that where through a reasonable mistake of fact one builds a house upon the land of another, the landowner, electing to retain the house upon his property, must pay therefore the amount by which the value of his property has been so increased.”
In Section 625, Chapter 11, Volume 2, Tiffany Real Property, Third Edition, the text contains this language:
*626 “Since the rule that erections or additions made by one who has no rights to land are fixtures, and therefore not removable by him, even though he made them in the belief that he was the owner of the land, is calculated to cause hardship to an innocent occupant of another’s land, by giving the benefit of his labor and expenditures to the landowner, the courts of this country, without either imputing fraud or requiring proof of it, hold it inequitable to allow one to be enriched under such circumstances by the labor and expenditures of another who acted in good faith and in ignorance of any adverse claim or title. Applying this doctrine of ‘unjust enrichment,’ a court of equity will, on the principle that he who seeks equity must do equity, refuse its assistance to the rightful owner of land as against an occupant thereof unless he makes compensation for permanent and beneficial improvements, made by the latter without notice of the defect in his title.
“According to one line of decisions, the innocent occupant will be allowed compensation for such improvements upon a bill filed by him against the true owner for the purpose.
“Under other decisions relief of this character is accorded only in a proceeding instituted by the true owner, as an incident to the relief given him.”
See also 57 A.L.R.2d, Annotation, Compensation for Improvements Made or Placed on Premises of Another by Mistake, Sections 11 and 12, pages 281-294.
From the foregoing authorities it is manifest that equity has jurisdiction to, and will, grant relief to one who, through a reasonable mistake of fact and in good faith, places permanent improvements upon land of another, with reason to believe that the land so improved is that of the one who makes the improvements, and that the plaintiffs are entitled to the relief which they seek in this proceeding.
The undisputed facts, set forth in the agreed statement of counsel representing all parties, are that the plaintiff
It is clear that the defendants claim the ownership of the building. Under the common law doctrine of annexation, the improvements passed to them as part of the land. Dawson v. Grow, 29 W. Va. 333, 1 S. E. 564; Bailey v. Gardner, 31 W. Va. 94, 5 S. E. 636, 13 Am. St. Rep. 847. This is conceded by the plaintiffs but they assert that the defendants can not keep and retain it without compensating them for the value of the improvements, and it is clear from the testimony of the defendant William L. Jacobs in his deposition that the defendants intend to keep and retain the improvements and refuse to compensate the plaintiffs for their value. The record does not disclose any express request by the plaintiffs for permission to remove the building from the premises if that could be done without its destruction, which is extremely doubtful as the building was constructed of solid concrete blocks on a concrete slab, and it is reasonably clear, from the claim of the defendants of their ownership of the building and their insistence that certain fixtures which have been removed from the building be replaced, that the defendants will not consent to the removal of the building even if that could be done.
To prevent such unjust enrichment of the defendants, and to do equity between the parties, this Court holds that an improver of land owned by another, who through a reasonable mistake of fact and in good faith erects a building entirely upon the land of the owner, with reasonable belief that such land was owned by the improver, is entitled to recover the value of the improvements from the landowner and to a lien upon such property which may be sold to enforce the payment of such lien, or, in the alternative, to purchase the land so improved upon payment to the landowner of the value of the land less the improvements and such landowner, even though free from any inequitable conduct in connection with the construction of the building upon his land, who, however, retains but refuses to pay for the improvements, must, within a reasonable time, either pay the improver the amount by which the value of his land has been improved or convey such land to the improver upon the payment by the improver to the landowner of the value of the land without the improvements.
It is pertinent to observe that, in cases involving the right to recover for improvements placed by mistake upon land owned by one other than the improver, the solution of the questions involved depends largely upon the circumstances and the equities involved in each particular case. Here, under the facts as stipulated by the parties, the equities which control the decision are clearly in favor of the plaintiffs.
To reverse the judgment of the circuit court the defendants cite and rely upon several cases which are clearly distinguishable upon their facts from the case at bar and are not applicable to or controlling of the decision in the instant proceeding.
In Dawson v. Grow, 29 W. Va. 333, 1 S. E. 564, the improver was guilty of negligence in not consulting the registration records, which would have informed her that
In Cautley v. Morgan, 51 W. Va. 304, 41 S. E. 201, the defendants Morgan and Huling and the plaintiff Cautley were owners of adjoining lots fronting on Quarrier Street in Charleston, West Virginia. The plaintiff, being desirous of building a party wall between the lots for a business building on her lot, entered into an agreement
In reaching the conclusion to deny the injunction, the court followed closely the case of Kirchner v. Miller, 39 N. J. Eq. 355, cited and discussed earlier in this opinion. In that case, as so indicated, the plaintiff and the defendant were owners of adjoining lots, the plaintiff employed a surveyor to fix the dividing line which he mislocated, and the plaintiff, supposing that he was building on his own land, inadvertently placed his house a few inches on the lot of the defendant who was not aware of the encroachment. The court held that equity would not enjoin an action of ejectment by the defendant against the plaintiff to recover possession of the strip of land on which he built the house in question. In that case it appeared, also1 as previously indicated, that the plaintiff could have removed the part of the building on the lot of defendant at an expense of $75.00 and the defendant admitted that the loss of the strip would cause no injury to his house but would reduce the value of the lot in the amount of $150.00. It is evident that the court in the Kirchner case was influenced by the lack of hardship sustained by the plaintiff by reason of his mistake, for in the opinion the court said “Where there is no hardship there is no ground for interference. This case is not one for the application of the doctrine.” In the Kirchner case, in commenting upon the holding in McKelway v. Armour, 10 N. J. Eq. (2 Stock.) 115, in which it was held that the plaintiff was entitled to be paid for the improvements by the landowner or that the landowner was required to sell his property to the plaintiff at a price to be fixed by the court or to exchange properties with him, the court, by way of dictum, said: “The exercise of such a judicial power, unless based upon some actual or implied culpability on the part of the party subjected to it, is a violation of constitutional right.” The same statement, also by way of dictum, appears in the opinion in the Cautley case and it also appears, as a cita
The judgment of the Circuit Court of Wood County is affirmed.
Affirmed.
Dissenting Opinion
dissenting:
Respectfully, but firmly, I dissent from the decision of the majority in this case. Although the majority expresses a view which it says would result in equitable treatment for both parties, I am of the opinion that such view is clearly contrary to1 law and to the principles of equity and that such holding, if carried into effect, will establish a dangerous precedent.
Basically, I believe that the principles expressed in Cautley v. Morgan, 51 W. Va. 304, 41 S. E. 201, reflect my view of this matter and that that case cannot realistically be distinguished from the instant case, as was attempted in the majority opinion. In that opinion it was said that the plaintiff who encroached upon the defendant’s property was guilty of “careless or negligent conduct in making the mistake.” The opinion reasoned that the plaintiff had the duty to see that the wall was properly located and that she had sufficient data to enable her to avoid the mistake if she had used the data with proper care. Certainly, in the instant case the plaintiff, had he caused to be made a proper survey and had
The majority opinion appears to rely on McKelway v. Armour, 2 Stock (N. J. Eq.) 115 for the proposition that the owner of property upon which a building was mistakenly built must either purchase the building or sell his property. This case, decided in 1854, was substantially overruled some thirty years later by Kirchner v. Miller, 39 N. J. Eq. 355 wherein the court said of the decision in McKelway, “[t]he exercise of such a judicial power, unless based upon some actual or implied culpability on the part of the party subjected to it, is a violation of constitutional right. No tribunal has the power to take private property for private use. The Legislature itself cannot do it.” This precise language was used by the Court in Cautley in rejecting the view taken in McKelway. In Cautley the Court held: “That that party, upon whom a duty devolves and by whom the mistake was made, should suffer the hardship rather than he who had no duty to perform and was no party to the mistake.” See 7 M. J., Equity, Section 25.
I am of the opinion that the Cautley case is not distinguishable from the instant case and that the language which says that such taking of property violates a constitutional right is not mere dictum as expressed in the majority opinion.
I am aware of the apparent alarmist posture of my statements asserting that the adoption of the majority view will establish a dangerous precedent. Nonetheless, I believe just that and feel that my apprehension is justified. On the basis of unjust'enrichment and equity, the majority has decided that the errant party who, without improper design, has encroached upon an innocent owner’s property is entitled to equitable treatment. That is, that he should be made whole. How is this accomplished? It is accomplished by requiring the owner
What of the property owner’s right? The solution offered by the majority is designed to favor the plaintiff, the only party who had a duty to determine which lot was the proper one and who made a mistake. The defendants in this case, the owners of the property, had no duty to perform and were not parties to the mistake. Does equity protect only the errant and ignore the faultless? Certainly not.
It is not unusual for a property owner to have long range plans for his property. He should be permitted to feel secure in the ownership of such property by virtue of placing his deed therefor on record. He should be permitted to feel secure in his future plans for such property. However, if the decision expressed in the majority opinion is effectuated then security of ownership in property becomes a fleeting thing. It is very likely that a property owner in the circumstances of the instant case either cannot readily afford the building mistakenly built on his land or that such building does not suit his purpose. Having been entirely without fault, he should not be forced to purchase the building.
In my opinion for the court to permit the plaintiff to force the defendants to sell their property contrary to their wishes is unthinkable and unpardonable. This is nothing less than condemnation of private property by private parties for private use. Condemnation of property (eminent domain) is reserved for government or such entities as may be designated by the legislature. Under no theory of law or equity should an individual be permitted to acquire property by condemnation. The majority would allow just that.
I am aware of the doctrine that equity frowns on unjust enrichment. However, contrary to the view expressed by the majority, I am of the opinion that the
I would reverse the judgment of the Circuit Court of Wood County and remand the case to that court with directions that the trial court give the defendant, Jacobs, the party without fault, the election of purchasing the building, of selling the property, or of requiring the plaintiff to remove the building from defendant’s property.
I am authorized to say that Judge Berry concurs in the views expressed in this dissenting opinion.
Reference
- Full Case Name
- W. J. Somerville, Et. Al. v. William L. Jacobs, Et Al. and Farmers Building and Loan Association, a Corporation, Intervenor
- Cited By
- 23 cases
- Status
- Published