Steward v. Yoder

Citation408 N.E.2d 55,86 Ill.App.3d 223,41 Ill.Dec. 709
Decision Date17 July 1980
Docket NumberNo. 15738,15738
Parties, 41 Ill.Dec. 709 Ronald Dean STEWARD and Thomas W. Steward, Plaintiffs-Appellees, v. Dean YODER, Phyllis J. Yoder, Wilbur E. Amdor, and Roberta Amdor, Defendants- Appellants.
CourtUnited States Appellate Court of Illinois

Marvin H. Gesell, Arnold, Gesell & Schwulst, Bloomington, for defendants-appellants.

Herrick, Rudasill & Moss, Clinton, for plaintiffs-appellees; A. J. Rudasill, Clinton, of counsel.

WEBBER, Justice:

This is an action for damages for breach of contract to sell 40 acres of land in DeWitt County. Plaintiffs were buyers and defendants were sellers. The circuit court of DeWitt County, sitting without a jury, awarded damages to plaintiffs and defendants have appealed. The only questions raised are the proper measure of damages and the award of interest on certain items.

The facts are not in dispute. The parties entered into a standard contract of sale on July 30, 1974. It provided that the defendants would furnish merchantable title by October 1, 1974, and would deliver possession on March 1, 1975, or upon removal of the 1974 crops, whichever was earlier. Plaintiffs made a down payment of $6,000 and were to pay the balance of $54,000 by March 1, 1975. The consideration was $1,500 per acre.

Defendants admit that they were unable to furnish merchantable title on the date specified, or at any time thereafter. It is also admitted that plaintiffs took possession of the premises between October 31, 1974, and January 31, 1975. During this period they prepared for the 1975 crops, plowing and fertilizing, and removing a fence. Possession was returned to defendants on February 1, 1975.

The trial court awarded plaintiffs the sum of $32,278.90 which it calculated as follows:

                  1.  Difference between contract
                      price ($1,500 per acre) and
                      market value on March 1, 1975
                      ($2,050 per acre)              $22,000.00
                  2.  Return of down payment           6,000.00
                  3.  Interest at 5% on down
                      payment from August 9, 1974
                      date of payment, to June 29
                      1979, date of decision           1,473.70
                  4.  Value of work done between
                      October 31, 1974, and January
                      31, 1975                       $ 1,974.59
                  5.  Interest on item # 4 at 9%
                      from October 26, 1974 to June
                      29, 1979                           830.61
                

Defendants quarrel with three of the foregoing items and raise those issues for review: (1) as to item # 1, defendants claim that in the absence of bad faith on the part of the seller, the buyer is entitled as damages only to the return of his down payment plus interest, not to the difference between contract price and market value; (2) as to item # 3, defendants claim that interest should run only to the date upon which they tendered back the down payment in August 1975, about one year following its payment, not to the date of decision; (3) as to item # 5, defendants claim that no interest at all is due on this.

We disagree with them as to the first two issues, but concur with them as to the third.

The law of Illinois as to the measure of damages in a case such as this has been settled since Plummer v. Rigdon (1875), 78 Ill. 222. In that case the supreme court said:

"Under these authorities, it may be regarded as the settled law in this State, that, in an action by a vendee to recover damages for a failure to convey, the value of the land at the time the conveyance is to be made, is the true measure of damages." 78 Ill. 222, 225.

Defendants maintain that the rule of Plummer obtains only when bad faith on the part of the vendor is shown and cite various Illinois and sister state authorities for this proposition. The answer is two-fold. First, the cases cited do not make good or bad faith the touchstone of the matter and Plummer itself rejected any such distinction. Second, the record here demonstrates lack of good faith on the part of these defendants.

The flaw in the title was a written contract made by a prior owner in the chain of title by which he agreed not to sell the land but to leave it in trust for his children. This contract was part of a marital settlement and was recorded 27 days before defendants executed their contract with the plaintiffs. In White v. Kibby (1867), 42 Ill. 510, 511, the supreme court said, "It is familiar law, that a person must be held to notice of whatever appears upon the face of his own title." Defendants thus knew, or are charged with constructive knowledge, that at the time of signing with the plaintiffs they would be unable to deliver merchantable title.

The trial court was correct in assessing damages as the difference in the contract price and the value on the date upon which conveyance was...

To continue reading

Request your trial
18 cases
  • In re Davenport
    • United States
    • United States Bankruptcy Courts. District of Columbia Circuit
    • November 24, 2020
    ...... Steward v. Yoder , 86 Ill.App.3d 223, 41 Ill.Dec. 709, 408 N.E.2d 55, 57 (1980) (concluding tender with ......
  • Bachewicz v. American Nat. Bank and Trust Co. of Chicago, 16555
    • United States
    • United States Appellate Court of Illinois
    • June 28, 1984
    ...the context of this rule, the "time of the breach" is the date upon which the conveyance was to be made. (Steward v. Yoder (1980), 86 Ill.App.3d 223, 41 Ill.Dec. 709, 408 N.E.2d 55, citing Plummer v. Ridgon (1875), 78 Ill. 222.) This rule applies with equal force to cases, such as the insta......
  • Continental Cas. Co. v. Commonwealth Edison Co., 1-95-3851
    • United States
    • United States Appellate Court of Illinois
    • February 7, 1997
    ......  Plaintiffs maintain nonetheless that Wernick need not be read so narrowly and that under Steward v. Yoder, 86 Ill.App.3d 223, 41 Ill.Dec. 709, 408 N.E.2d 55 (1980), Kozak v. Retirement Board of ......
  • Needham v. White Laboratories, Inc., s. 87-1379
    • United States
    • United States Courts of Appeals. United States Court of Appeals (7th Circuit)
    • June 16, 1988
    ......at 579, 45 Ill.Dec. at 920, 413 N.E.2d at 398. Finally, Steward v. Yoder, 86 Ill.App.3d 223, 226, 41 Ill.Dec. 709, 711, 408 N.E.2d 55, 57 (1980), holds that there ......
  • Request a trial to view additional results

VLEX uses login cookies to provide you with a better browsing experience. If you click on 'Accept' or continue browsing this site we consider that you accept our cookie policy. ACCEPT