Broaden v. Doncea, 37

• Decision Date: 04 October 1954
• Docket Number: No. 37,37
• Citation: 340 Mich. 564,66 N.W.2d 216
• Parties: Horace BROADEN and Mattie Lee Broaden, his wife, jointly and severally, Plaintiffs and Appellants, v. Nick DONCEA and Elizabeth Doncea, his wife, jointly and severally, Defendants and Appellees.
• Court: Michigan Supreme Court

Page 216

66 N.W.2d 216

340 Mich. 564

Horace BROADEN and Mattie Lee Broaden, his wife, jointly and severally, Plaintiffs and Appellants, v. Nick DONCEA and Elizabeth Doncea, his wife, jointly and severally, Defendants and Appellees.

No. 37.

Supreme Court of Michigan.

Oct. 4, 1954.

Charfoos, Gussin, Weinstein & Kroll, by William J. Weinstein, Detroit, for appellants.

Before the Entire Bench.

CARR, Justice.

This is a suit in equity to enjoin the forfeiture, or foreclosure, of a certain land contract, and for the revision of said contract in accordance with an alleged oral agreement. The property in question is referred to as 12922 Greeley street, Detroit. Defendants acquired ownership thereof prior to the 29th of October, 1943, on which date they entered into an executory land contract for its sale to Kate Long for a total consideration of $4,800. The proofs disclose that Mrs. Long was not the real party in interest, that her son Rufus Long intended to make the payments as they fell due, and that he actually made the down payment in the sum of $800. Of this amount $300 was borrowed by Rufus Long from plaintiff Mattie Lee Broaden (then Mattie Lee Erwin). Neither of the Longs occupied the property but Mrs. Erwin did so under an arrangement to pay rent to Rufus Long.

The payments were not made on the land contract as required, and in the spring of 1945 defendants took steps to forfeit the vendee's interest. The circuit court commissioner before whom the matter was heard determined the issue in their favor and entered an order on the 3rd of May, 1945, finding the vendee in default in the sum of $531.06. It does not appear that either of the Longs took any further interest in the matter.

It is the claim of the plaintiffs that negotiations were entered into between Mrs. Broaden and defendant Mrs. Doncea for the purchase of the property by the former. The testimony relating to this phase of the case is conflicting and indefinite. It is the claim of the plaintiffs, in substance, that it was understood and agreed by the parties that if the amount of the default under the Long contract was paid up in full plaintiffs might proceed under the terms of that instrument, or under a new contract for the purchase of the property on the basis of a total consideration of $4,800 with credit given for all payments made in accordance with the contract executed by defendants to Kate Long. The defendant Mrs. Doncea denied any such arrangement and claimed that the understanding was that if plaintiffs should, within the 90 day period following the termination of the circuit court proceeding, above referred to, make up the full amount of the default as fixed by the circuit court commissioner, together with the costs of the litigation, they would be given credit accordingly on the purchase price of the property. On behalf of defendants it was further claimed that such arrangement was not carried out. Plaintiffs continued to occupy the property and made payments to defendants from time to time for which receipts were given, the majority of said receipts referring to each such payment as rent.

On the 15th of October, 1947, an executory land contract was prepared and executed by the parties, providing for the sale of the property to plaintiffs by defendants for the total sum of $4,600 with a $200 down payment. Shortly prior to such execution plaintiffs made certain payments to defendants, the parties being in disagreement as to the reason therefor. On behalf of defendants it is claimed that the property had increased in value, and that said payments were by way of inducement to the making of the contract of October 15, 1947, on the terms therein set forth. It is the position of the plaintiffs that such payments were required in order to satisfy the provisions of the Long contract, which was, as above noted, forfeited over two years previously.

Plaintiffs alleged in their bill of complaint that they signed the land contract when proffered to them because of statements made by defendants to the effect that if they did not do so they would be put out of possession of the property. The testimony of each of the plaintiffs on the trial of the case supports this averment, justifying the inference that the reason why the new contract was executed by plaintiffs was to permit them to remain in their home and acquire ownership. The plaintiffs also claimed that they objected to the contract because it did not give them credit for prior payments allegedly made pursuant to the Long contract, and that they were promised by Mrs. Doncea that a check would be made with reference to said payments and proper credit given therefor. On behalf of defendants the making of any such promises was denied. No written memorandum of the agreement now claimed by plaintiffs was prepared.

After the execution of the October, 1947, contract plaintiffs remained in the property thereunder and made payments from time to time until January, 1950. They insist that they continually brought up the matter of the allowance of the credits claimed by them, but without results. In January, 1950, at the time of making a payment in the sum of $200 under their contract, they claim that they informed defendants that they would not pay any more money until the controversy that they asserted was settled. Forfeiture or foreclosure proceedings being thereatened by defendants, plaintiffs filed the instant suit asking for an injunction against any such forfeiture or foreclosure and asking also that the contract of October 15, 1947, be revised 'to include all payments made since the date that your plaintiff, Mattie Lee Broaden, took over and assumed the land contract of one, Rufus Long.'

After listening to the testimony of the witnesses the trial...