Haas v. Crisp Realty Co.
| Decision Date | 05 June 1953 |
| Citation | 65 So.2d 765 |
| Parties | HAAS et ux. v. CRISP REALTY CO. et al. |
| Court | Florida Supreme Court |
Askew & Earle, St. Petersburg, for appellants.
Mann, Harrison & Stone, St. Petersburg, for appellees.
A proper consideration of the issues presented in the cause below and on appeal here requires a rather detailed statement of the transactions between the parties, and their pleadings in this litigation.
Crisp Realty Co. is a real estate broker and Northeast Homes, Inc., is owner and developer of a subdivision in Pinellas County. Crisp Realty Co., through its agent in Philadelphia, interested appellants in purchasing certain lots, then unimproved, in such subdivision. After considerable negotiation between appellants and Crisp Realty Co. it was determined that appellants would purchase a home to be built on two lots in such subdivision by Northeast Homes, Inc., according to plans and specifications agreed upon by appellants and filed with FHA for the purpose of a mortgage commitment, it being understood that part of the purchase price would have to be financed and appellants desired FHA terms. During much of the time these negotiations were progressing, the appellants were at their farm in Pennsylvania and Crisp Realty Co. was handing the matter of mortgage commitment with FHA. Crisp was successful in obtaining a 'qualified owner-occupant' commitment of $9,800 on the agreed specifications. Meanwhile appellants had sold their farm in Pennsylvania realizing net proceeds of some $9,500. The total consideration for the Northeast purchase was agreed upon as $15,550 and contract was prepared by Crisp Realty Co. on the commonly used 'deposit receipt' form, forwarded to Pennsylvania and executed there by appellants. The terms of the contract provided for the total purchase price of $15,550 with 'payment to be made as follows: $6,050.00 acknowledged above, and qualify for an execute an FHA mortgage in the principal sum of $9,800.00.' The cash sum of $6,050 included $300 as advance payment on financing charges in connection with the mortgage, which charges purchasers agreed to pay.
Simultaneously with the execution of the contract, purchasers delivered their check for $6,050 with notation thereon 'In full payment per phone 2/3/50 with Mr. Crisp message.'
At about the time the dwelling was completed by Northeast, appellants came to St. Petersburg, presented themselves to the office of Crisp Realty Co. for the purpose of closing the purchase, and gave to Crisp certain credit and financial information to be included in their application to FHA for the purpose of qualifying for the commitment already procured by Crisp. On the following day Crisp presented to appellants the prepared application for their required execution under oath, which appellants refused to sign on the contention that the data contained was padded and false and materially at variance with the information they had supplied. From the point on, the relations between the parties deteriorated to the extent that this litigation resulted.
Appellants filed their bill for cancellation and rescission of the contract of purchase and for a return of the $6.050 paid on the contract, alleging as grounds for relief that the contract was procured by fraudulent representations to them by Crisp, president of Crisp Realty Co., that he had already secured for them the $9,800 mortgage for a term of 25 years and that there remained only their execution of such a mortgage, which they were willing and ready to do. By amendment appellants alleged the further ground that the contract was intended, and by its terms provided, that the securing by Crisp for the appellants of a 25-year FHA mortgage was a condition of their contract to purchase which Crisp had failed to perform. The amended bill further charged that their failure to consummate the purchase was due to Crisp's failure to procure such a mortgage, and to the further fact that in any event they could not qualify, by reason of the circumstances of their income and assets, for an FHA mortgage as provided by the contract.
Appellees' answer denied the allegations of the grounds charged in the bill, and by way of counterclaim alleged Northeast Homes' performance of the contract and appellants' breach by refusal to execute the necessary papers to consummate the purchase, and claimed forfeiture of the $6,050 partial payment. Answering the counterclaims appellants reasserted as defensive matter the grounds set out in their bill, which we must consider to include the additional grounds of the amendment to the bill, and incorporated their motion to dismiss the counterclaim for failure to state a claim upon which relief can be granted and failure to state any fact or ground on which equity would enforce a forfeiture of the cash payment involved. No separate order was entered on the motion to dismiss the counterclaim.
Evidence was taken before the Chancellor on the issues presented by the pleadings. At the close of the plaintiffs' evidence the Chancellor entertained defendants' motion to dismiss, and being of the view that the evidence was insufficient to sustain the bill or defeat the counterclaim, concluded that further evidence by defendants was unnecessary, made his findings and entered final decree adverse to plaintiffs. The Chancellor's view of the issues and his findings thereon are set out in his 'Findings' as follows:
'The matter is presently before the Court on a motion to dismiss at the conclusion of Plaintiffs' testimony, they have rested as to whether or not there is sufficient ground for rescission, either upon the ground of fraud or misrepresentation and upon the grounds of condition preceding. The only difficulty there is that there is a counterclaim in this case for a retention of the sum deposited as liquidated damages. The only other material issue in the counterclaim as I see it was whether or not the commitment was issued or whether or not the Crisp Realty Co. did everything within its power to consummate the deal, that is completed its part of the transaction.
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