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Campbell v. Carr, 361, 603 S.E.2d 625 |
South Carolina Court of Appeals |
2004 |
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Chapter |
20 |
Title |
Remedies |
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Page |
865 |
Topic |
Specific Performance and Injunctions |
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Quick Notes |
Mere inadequacy of consideration is not a ground for refusing the remedy of specific performance. However, when it is combined with concealment, misrepresentations, undue advantage, oppression on the part of the one who obtains the benefit, or ignorance, weakness of mind, sickness, old age, incapacity, pecuniary necessities; a court will likely grant relief. |
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Book Name |
Torts Cases, Problems, And Exercises. Weaver, Third Edition. ISBN: 978-1-4224-7220-0. |
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Issue |
o Whether inadequacy of consideration is grounds for refusing the remedy of specific performance? No. |
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Procedure |
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Trial |
o The master-in-equity tried the case without a jury and ordered specific performance of the contract |
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Appellant |
o REVERSED - The inadequacy of consideration in addition to Carr's mental illnesses, make it inequitable to order specific performance |
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Facts |
Reason |
Rules |
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Pl Campbell
Df
Carr o The Carrs have leased the property in question for 30 years. Seen Land Once o Campbell lived in New York and she had only seen the land once. Inherited o She inherited the land from her mother. Carr had Schizophrenia o She was sick with Schizophrenia and she ask the Carr if they were interested in the buying the land. Did not know land value o She did not know what the value of the land was and she made the mistake of asking the buyer. Non-Ag use vs. Ag Use Value o Campbell quoted Carr the access fair market value if the land was not used for agriculture ($54,000). o However, the County Tax Assessor agriculture market value was accessed at $103,700. Contract o Carr and Campbell entered into a written contract for $54,000. o Earnest money of $1000 was given to Car. Carr did not attend the closing o She felt the sales price was unfair. o Carr returned the earnest money, but Campbell refused. o In the meantime, Carr conveyed one-half interest to her cousin Ruth Glover. Real Estate Expert o Found land was valued at $162,000. Campbell Brought Suit o Seeking specific performance of a land contract entered into between Campbell and Carr. Trial Court o The master-in-equity tried the case without a jury and ordered specific performance of the contract. Carr Appealed o Asked for Review |
Specific Performance o Specific performance should be granted only if there is no adequate remedy at law and specific enforcement of the contract is equitable between the parties.
o Equity will not decree specific performance unless the contract is fair, just, and equitable.
o Specific performance will not be ordered unless the contract expresses the true intent of the parties and is fair, just and equitable.
In order to compel specific performance, a court of equity must find: o (1) There is clear evidence of a valid agreement; o (2) The agreement had been partly carried into execution on one side with the approbation [warm approval] of the other; and o (3) The party who comes to compel performance has performed his or her part, or has been and remains able and willing to perform his or her part of the contract.
Inadequacy Of Consideration Is not grounds for refusing specific performance o Mere inadequacy of consideration is not a ground for refusing the remedy of specific performance.
Defense to Inadequacy o The inadequacy must either be accompanied by other o (1) inequitable incidents, or o (2) must be so gross as to show fraud.
Accompanying incidents are inequitable and show bad faith o Examples such as concealment, misrepresentations, undue advantage, oppression on the part of the one who obtains the benefit, or ignorance, weakness of mind, sickness, old age, incapacity, pecuniary necessities, and the like, on the part of the other -- these circumstances, combined with inadequacy of price, may easily induce a court to grant relief, defensive or affirmative.
Grossly inadequate consideration is combined with weakness of mind o When a grossly inadequate consideration is combined with weakness of mind on the part of the seller, a denial of specific performance is warranted.
Determining the Inadequacy of Price o The inadequacy of price is determined at the date the contract was entered. o The inadequacy must not be measured by grains, but it ought to be palpably disproportioned to the real and market value of the property, so as to constitute a hard, unreasonable, and unconscionable contract. o It is not necessary that it should be so gross as to excite an exclamation or to indicate imposition, oppression or fraud, for this would be sufficient ground not only for refusing a specific performance but for rescinding the contract.
In this case o The consideration stated in the contract between Carr and the Campbells was inadequate. o The $54,000 sales price in the contract was significantly below the appraised value of $162,000. o The Collateral I.D. report's expected sell value of $129,625 to $145,180, and the Richland County Tax Assessor's fair market value of $103,700.
Courts Reasoning o This inadequate consideration combined with Carr's weakness of mind, due to her schizophrenia and depression, makes it inequitable to order specific performance.
Prospective buyers had greater knowledge combined with Carrs sickness o The Campbells, as the prospective purchasers, had greater knowledge of the real estate value of the land, having leased the land for thirty years for personal hunting and farming purposes, compared with Carr, who lived in New York, had not visited the property since she was a child, and had no knowledge of the fair market value of the property. o Additionally, Carr suffers from mental illness as the prospective seller did in Craven.
Holding o We find the contract price of $54,000 is inadequate consideration for the 108-acre tract of land. o The inadequacy of consideration in addition to Carr's mental illnesses, make it inequitable to order specific performance. |
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Class Notes |
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