Kramer v. Mobley

309 Ky. 143, 216 S.W.2d 930 (1949)

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Nature of the Case

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Facts

Seller (D) had purchased part of the land at issue from the Gordons in September 1943. The deed recited consideration of $1 paid in cash, and $22,750 payable on or before January 1, 1944. As security for the balance, the Gordons took a note secured by a lien on the land. In March 1944, Mrs. Gordon signed a release in the deed book, reciting that $20,612 had been paid on the note. In December 1944, D listed the land at issue for sale. Mobley (P) agreed to buy the land for $65 an acre, for a total of $48,457. After executing the initial agreement to purchase, P claims that he had an abstract of the title examined, and discovered the possibility of a $2138 lien on the land in favor of the Gordons. However, D claimed that he had informed P prior to the execution of the agreement of the existence of the lien, and the fact that it was in dispute. D further claims that he told P that he would bring a quiet title action against Gordon to clear the title and that he would indemnify P for any loss incurred. Although this was initially agreed to, negotiations between the parties broke down. D tendered a general warranty deed and a check to cover P's loss, but P refused to accept them unless D obtained a release of the lien. D insisted that he did not owe the amount in dispute, and again promised to clear the title by means of a quiet title action. P brought this action for breach of contract. He alleged that the market value of the land was $10 per acre higher than the contract price, and sought to recover an amount reflecting the difference between the contract price and the market price, as well as his expenses in obtaining the title search. The lower court found in P's favor but found that the market value of the land was actually $2 per acre more than the contract price and that P should be compensated for loss incurred by reason of D's failure to complete the contract. The court awarded P $2000 in damages. D appeals.