Van Valkenburg v. Allen

• Court: Minnesota Supreme Court
• Writing for the Court: JAGGARD
• Citation: Van Valkenburg v. Allen, 111 Minn. 333, 126 N.W. 1092 (Minn. 1910)
• Decision Date: 01 July 1910
• Parties: VAN VALKENBURG v. ALLEN et al.

111 Minn. 333

126 N.W. 1092

VAN VALKENBURG

v.ALLEN et al.

Supreme Court of Minnesota.

July 1, 1910.

Appeal from District Court, Hennepin County; Andrew Holt, Judge.

Action by Jesse Van Valkenburg, executor, against Frank B. Allen and another. From an order dissolving an injunction, and dismissing the action, plaintiff appeals. Affirmed.

Syllabus by the Court

Deeds were sent by the vendor in a contract for sale of land to a bank for delivery to the vendee on payment of a named sum. The vendee tendered a less amount, and offered to pay what balance should be found due to the vendor on an accounting. The bank was not named in the contract as a repositary in escrow: It is held that the bank was merely an agent of the vendor, and that under these circumstances an action did not lie against it to compel the delivery of the deed.

An ‘escrow’ is a deed delivered to some third person to be by him delivered to the grantee on the performance of some precedent condition by the grantee or another or the happening of some event. If the instrument remains in the dominion of the maker, it is not an escrow. To constitute an escrow, the deed must be delivered to a third person, and not to the agent of the grantor. J. Van Valkenburg, for appellant.

Ell Torrance, for respondents.

JAGGARD, J.

Plaintiff and appellant, the executor of one Lund, deceased, brought this action against the defendant and respondent Allen and a corporation hereinafter referred to as the bank. The complaint set forth in effect that in 1906 Lund and Allen executed a written contract for the sale of land by Allen to Lund; that during his life Lund paid $27,180 on this contract; that Allen placed in escrow in possession of the bank, within the jurisdiction of the court, deeds to the said land, to be delivered on the payment of $5,045.02; that plaintiff tendered to said defendants the sum of $1,513.58 in full payment of the deeds, after deducting pro rata for premises agreed to be withdrawn from the contract, and was willing to pay such other and further sum as on accounting should be found due. Plaintiff demanded judgment for an accounting, and for a decree directing the bank to deliver the conveyance to this plaintiff upon the receipt of the amount found to be due. The other allegations are not material here. On application of the plaintiff, the court restrained the bank from parting with the deeds of conveyance until the final determination of the action. Defendant bank moved to dissolve the temporary injunction and to dismiss the action, on the grounds that the summons therein had not been served on defendant Allen, a nonresident, who had not appeared in said action, and who had had no property within the jurisdiction of the court since the commencement of the action; that the complaint did not show that any judgment for money or damages could be entered against Allen; that the property in dispute was situated in North Dakota; that the deed sought to be delivered to plaintiff ran to grantees other than the plaintiff; that, if defendant delivered the deeds contrary to the terms authorized, it would be subject to an action for damages by Allen; and that an action was pending in the courts of North Dakota by plaintiff against Allen to enforce specific performance of the contract. The court granted the motion, dissolved the injunction, and dismissed the action. This appeal was taken from that order.

The present controversy is within narrow limits. Plaintiff insists that neither Allen nor any one else had any right to impose terms, to be enforced by the depositary to whom the deeds had been sent for collection, differing from the agreements of the parties in the contract for deed, and that if the attempt were made the conditions thus prescribed did not supersede the original terms set forth in the contract. This specific proposition is sound enough. 11 Current Law, 1274. And see Naylor v. Stene, 96 Minn. 57, 104 N. W....