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Keywords

contractsettlementplaintiffdefendanttrialspecific performanceliens
contractplaintiffdefendanttrialspecific performanceliens

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Kuper v. Scroggins, 127 Colo. 416, 257 P.2d 412

Facts

The plaintiffs entered into a written contract with the defendant on April 29, 1948, to purchase land in Kiowa County, Colorado, for $20,000, with the title to be conveyed in fee simple, free of liens and encumbrances. After signing the contract, the plaintiffs discovered that the defendant did not own the mineral rights to a portion of the land, which were owned by the State of Colorado. Despite attempts to negotiate a settlement regarding the mineral rights, no agreement was reached, leading the plaintiffs to file a complaint for specific performance in June 1950.

It appears that as to a portion of the land to be conveyed, defendant did not own the mineral rights thereto, they being owned by the State of Colorado.

Issue

Were the plaintiffs entitled to the relief granted by the trial court for specific performance of the contract despite the mineral rights reservation?

Under the record as here made, were plaintiffs entitled to the relief granted by the trial court?

Rule

A vendee has the right to insist upon performance by the vendor to the extent that the latter is able to perform with an abatement in the purchase price equal to the value of the deficiency or defect.

It has long been the general rule that a vendee has the right to insist upon performance by the vendor to the extent that the latter is able to perform with an abatement in the purchase price equal to the value of the deficiency or defect.

Analysis

The court found that the defendant had expressly contracted to convey the property free of all liens and encumbrances, and the plaintiffs had the right to rely on this contract without conducting a title search. The existence of the mineral rights reservation did not negate the plaintiffs' right to specific performance, as the contract was clear and the defendant had not demonstrated a mutual mistake regarding the terms.

In the instant case defendant in writing expressly contracted to convey all of this real property in fee simple, free and clear of all liens, incumbrances or taxes. This contract was prepared by his representative at a time when they had possession of the abstracts of title to this real property. Plaintiffs when they signed the contract had a right to rely on it as it was submitted to them, and were under no obligation to search the record to ascertain if defendant owned the property which he contracted to sell.

Conclusion

The court affirmed the trial court's judgment, allowing the plaintiffs to proceed with the purchase of the property with an adjustment to the purchase price for the mineral rights reservation.

We conclude that the fact that the outstanding mineral rights were of record in the State of Colorado when parties entered into the contract, did not deprive plaintiffs of their right to specific performance of the contract under the terms and conditions decreed by the trial court.

Who won?

Plaintiffs prevailed in the case because the court found that they had the right to specific performance based on the terms of the contract, which the defendant failed to fulfill.

The ample findings of the trial judge are supported by legal and competent evidence, and disclose that by a written contract, dated April 29, 1948, defendant agreed to sell, and plaintiffs agreed to buy certain lands in Kiowa County, Colorado, for a total consideration of twenty thousand dollars, title to be in fee simple, free and clear of liens, taxes and encumbrances.

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