Schnuettgen v. Frank

• Court: U.S. Court of Appeals — Eighth Circuit
• Citation: Schnuettgen v. Frank, 213 F. 440 (8th Cir. 1914)
• Decision Date: 28 March 1914
• Docket Number: 4048.
• Parties: SCHNUETTGEN v. FRANK.

213 F. 440

SCHNUETTGEN v. FRANK.

No. 4048.

United States Court of Appeals, Eighth Circuit.

March 28, 1914

G. W Cullison, of Harlan, Iowa (William Gardner and Shelby Cullison, of Harlan, Iowa, on the brief), for appellant.

Charles Hutchinson, of Iowa Falls, Iowa (Jacob Sims, of Denison Iowa, Byers & Byers, of Harlan, Iowa, and Clark, Byers &amp Hutchinson, of Des Moines, Iowa, on the brief), for appellee.

Before SANBORN and CARLAND, Circuit Judges, and RINER, District Judge.

RINER District Judge.

This is a suit for the specific performance of a contract for the purchase of real estate. The bill alleges in substance that in January, 1903, Earnest Frank, now deceased, the husband of appellee, entered into negotiations with the appellant and one Charlotte Gardner for the purchase and transfer to him of 295 acres of land in Shelby county, Iowa; that, in the negotiations for the sale of the land, the entire tract was figured at a valuation of $100 per acre. As a result of their negotiations, it was finally agreed that 50 acres of land upon which the buildings and improvements were located, should be conveyed to Frank, he paying at that time the sum of $12,500, or at the rate of $250 per acre for the land conveyed, the payment to be considered as a part payment upon the whole tract; that for the remainder of the tract he was to receive a contract wherein it was to be stipulated and agreed that, if at any time within five years from the date of the contract Frank should pay a sum equal to $70 per acre for the remainder of the tract, the same should be conveyed to him, and, pending such payment, the land was to be used and occupied by Frank, he paying rent therefor. Pursuant to the agreement and understanding of the parties, Frank paid $12,500 and received a deed for the 50 acres and the following option contract:

'To Earnest Frank: We hereby offer to sell you 90 acres, more or less, in the southeast quarter (SE 1/4) of section thirty-two (32), being all of said quarter section lying northwest of the Chicago, Milwaukee & St. Paul Railway Company's right of way, except 11 acres in the southwest corner thereof, (said 11 acres consisting of a ball ground and (tenants) premises and buildings adjacent thereto) for $70.00 per acre, on the following terms, to wit: You to pay us one-third cash, we to carry the balance of the purchase price for such time as may be agreeable at 4 per cent. per annum, taking first mortgage on the land to secure the same. We offer you a like option to purchase all our remaining land in said section at same price and on same terms. We further agree to lease to you, from year to year, all, or any, of our lands in said section at the prevailing rates of rent. If we place any improvements upon the above described land, after this date, the cost of such improvements shall be added to said price of $70.00 per acre.

'(Signed) John Schnuettgen. 'Charlotte Gardner.'

'Dated January 19, 1903.'

It is further alleged in the bill, and the proof shows, that in March, 1904, Frank entered into the possession of all of the lands and continued in possession and occupancy thereof up to the time of his death, and that his family have occupied the premises ever since and are now in possession thereof.

It is also alleged in the bill:

'(2) That, at the time your orator's husband paid said Schnuettgen the purchase price of the 50 acres, said Schnuettgen knew that your orator's husband understood and believed that he was purchasing the entire tract containing, as above alleged, about 300 acres of land, and that he was purchasing the land for a farm. That all the buildings and improvements on the entire tract were located on the 50 acres, and that, without the right to purchase the balance of the land in said section, the 50 acres would not have been worth to exceed $150 an acre. That neither your orator's husband nor your orator understood or could speak the English language, which fact was well known to the defendant Schnuettgen. That the contract or bond for a deed above referred to was written in English, and neither your orator, who was present at the time, nor her deceased husband could read said contract, but the said Schnuettgen stated that it contained the agreement as above, and that not until some time after its execution did your orator's husband learn that there was no time fixed in said contract when the option to take conveyance of the remainder of said land would expire, whereupon your orator, with her deceased husband, called upon the defendant Schnuettgen and told him that they were ready to take a conveyance of the remainder of said land and desired to have the transfer made at once. That in response the said Schnuettgen stated that the contract was good for five years, that it was not necessary that it should be stated in the contract, and urged your orator's husband to wait until he had harvested another crop and until money was more plentiful before taking a conveyance of the remainder of said tract, and assured your orator's husband that his contract for a conveyance of said land would be good for five years.'

'(4) That on or about the spring of 1905, and within a little over a year subsequent to the execution and delivery of the contract hereinbefore referred to, your orator's husband had made arrangements to procure the money to pay for the land on the terms stated in the contract and so notified the defendant Schnuettgen, whereupon the said Schnuettgen informed your orator's husband that conveyance could not be made at that time because the land had been leased for another year, and urged and persuaded your orator's husband not to insist upon conveyance at that time, said Schnuettgen insisting that, under the contract, he was not bound to accept his money until the five years agreed upon had expired. That your orator's husband, being ignorant and not being able to understand or read the English language, and not informed as to his rights, believed the said Schnuettgen, and, relying upon assurances of the said Schnuettgen that the option was good for five years, he did not further insist upon a conveyance.'

It is further alleged that Earnest Frank died November 1, 1905 leaving a will, by the terms of which all his property, both real and personal, was devised and bequeathed to Maria Frank, his wife, the appellee herein, and that she duly qualified as executrix of the estate. It is also alleged that Charlotte Gardner, subsequent to these transactions, conveyed by deed all of her interest in the land...