Lane v. Richards

• Decision Date: 10 October 1902
• Citation: 91 N.W. 786,119 Iowa 24
• Parties: H. MINERVA LANE et al, Appellants, v. JULIA A. RICHARDS, Executrix
• Court: Iowa Supreme Court

91 N.W. 786

119 Iowa 24

H. MINERVA LANE et al, Appellants, v. JULIA A. RICHARDS, Executrix

Supreme Court of Iowa, Des Moines

October 10, 1902

Appeal from Black Hawk District Court.--HON. A. S. BLAIR, Judge.

ON the 15th day of November, 1886, Edward M. Johnson purchased an undivided one-half interest in a certain addition to Minneapolis for the sum of $ 30,536.75. $ 7,381.60 of this price was paid in cash by W. O. Richards and Allen T. Lane in equal parts, and a written agreement was entered into between Johnson on the one hand and Richards and Lane on the other whereby Johnson became obligated to pay the balance of the purchase price of the land, and also to repay to Richards and Lane all money which they put into the deal. Under this contract Richards and Lane were bound to furnish all money necessary to pay taxes, interest on the mortgages which Johnson had given or assumed, and to pay the cost of improving and selling the land. No further liability was therein incurred, but it was agreed that they might make payments on Johnson's indebtedness for the land, and that they should be reimbursed for any payments so made. On the 22d day of November, 1886, W. O. Richards executed the following written agreement:

"This agreement, made and entered into this 22d day of November, A. D. 1886, between W. O. Richards, party of the first part, and Allen T. Lane, party of the second part, witnesseth: That the parties herein did jointly purchase on the 15th day of November, A. D. 1886, an undivided one-half of Home Park addition to Minneapolis, according to the recorded plat thereof in the office of the register of deeds in and for Hennepin county, Minnesota. That the purchase price of said undivided one-half of Home Park addition was the sum of thirty thousand five hundred and thirty-six and seventy-five hundredths dollars, to be paid as follows, viz: A cash payment on day of purchase of seven thousand three hundred and eighty-one and sixty hundredths dollars, and eight thousand on or before one year, with interest at eight per cent; also assume the payment of mortgage on said land to the amount of fifteen thousand dollars, payable on or before March 1, 1891, with interest at seven per cent. per annum payable semi-annually. And whereas, the parties herein did enter into an agreement with Edward M. Johnson, of Minneapolis, Minnesota, wherein the said Edward M. Johnson is to retain the title to said land, to have full charge of the sale of said land, and control and manage the same as he chooses, agreeing to pay to the parties herein all the moneys they shall have paid, whether for purchase money, interest taxes, and cost of improving said land and of selling the same, with annual interest at eight per cent. from date of payment until paid. Also one-half the net profits from the sale of said land after deducting the amounts he shall have paid as herein specified. In consideration of Allen T. Lane Party of the second part, entering into and signing the said agreement with said Edward M. Johnson, W. O. Richards, party of the first part, agrees to and with the party of the second part herein that he will guarantee the payment of all money paid by him on account of the purchase and sale of said land as provided by the agreement with said Edward M. Johnson, together with interest at eight per cent. per annum until paid on all sums so paid. And the party of the first part agrees to pay to the part of the second part the amount paid by him, together with interest at eight per cent., when said land is sold, provided the net proceeds from the sale of said land is insufficient to pay said amount as aforesaid. W. O. Richards. Allen T. Lane."

Richards and Lane are both dead. Before his death Lane paid on the Johnson contract the additional sum of $ 337.50. After his death the plaintiffs paid thereon the further sum of $ 2,696.87. After the death of Richards the plaintiffs filed a claim against his estate, predicated on the contract of November 22, 1886, for the full amount of money paid on the Johnson contract by their decedent Lane, and by themselves. There was a trial to the court, and a judgment for the defendant. The plaintiffs appeal.

Affirmed.

Boies & Boies for appellants.

Mullan & Pickett and E. M. Johnson for appellee.

OPINION

SHERWIN, J.

The appellants claim that the contract of November 22, 1886, is of a dual character,--that it is both a guaranty of performance on the part of Johnson, and a...