The Bismarck tribune. [volume] (Bismarck, N.D.) 1916-current, 1923-07-18
HOUSES TO GO
T0BUYERSFOR
I. FAIR VALUE"
Court Holds That Home Buy
er May Get His Money Back
on House at Fair Price


5000 LIMIT UPHELD
Law Provided House Couldn't
be Built Costing More than
$4,000, Court Holds
The supreme court. reversing the
Of District Judge Thomas
'ugh in the case Of George E. Wal.
ace. former state tax commission.
n, to force the Home Building As.
ociation of North Dakota to deliv.
r him a deed for a home built by
he state association in Bismarck
oday decided:
1. Section 6 Of the Home
Builders' Act 10 held to author
lie construction Of homes for
members Of the Home Buyers
League. who have assumed the
prescribed contingent liability
to the state. Wallace was not
member of Home Buyers Lea
que.
2. The Gsme section "is con-
strued to place limitation Of
$5.e00.O0 upon the price OF .
home to be built for such .
member, and, In applying the
limitation. the house and lot Is
considered ~ real property and
AZ an entity"
3. Since the Wallace contract
was invalid because he. was not
a member Of 4 Home Buyers
League and by reason of the
price being In. excess Of that au-
thorized, by the statute, the
court holds ''the contract will
not he specifically enforced, but
in an action to enforce 1t, equi-
table considerations will he ap-
piled to an alternative judgment
directed, giving the purchaser
the option to obtain a return Of
advanecmcnts made with inter-
est or to, require the state to
convey upon the payment or Sc
curing hy himl Of the reasonable
value, a the property" 80. -. ;.
The case also was remanded tc
udge Pugh for further action. Tho
ourt's opinion was signed by Jus
ices Christianson. Nuessle and
Bronson and District Judge Cooley
Sustains State
"The decision sustains the con.
entions of the state in It's supple
mental brief and oral argument,
aid Attorney-G General George Shat
r. 1--WE contended that the cor
ract was invalid, if there was a
ontract, because the $4,000 limita
ion had been exceeded and MI
Wallace was not member of .
lone Buyers League. Contendinp
hat the contract was invalid, W.
ould not ask that the state act o.
t. In the situation, we contended
he fair and just solution was this
he purchaser should turn back tn
louse and obtain return of ad
'ancements. or the property should
'e conveyed at reasonable value.
In the Wallace case he contendea &
hat the state agreed to furnish hin
he home for $500. excluding ex
ras, and Judge Pugh held that the
tate had made q contract with hir
nd should deliver the house at. The
greed price Of $500.
The house cost, according, tt
ooks Of the Home Building Asso.
iation, $11,720.45.
Under the decision Mr.. Wallace
nay return the house and receive
ack from the Home uiiding Asso.
iation $4,000 he advanced or he
nay obtain the house for the "rea-
enable value" Under a law of the
923 legislature it was provided
hat in liquidating affairs of the
Iome Building Association, arbitra.
ion might be resorted to fix fair
'alue Of the property, at which
'rice it might be delivered.
Not Typical Of All
The Wallace case is not typical OF
III Of the cases Of persons for whom,
ZONES we're built-about 50 in mum
,er-but is typical Of most cases
specially in that the cost exceede {
5000 and the person for whom tbs
lome was built claimed a verba
contract for delivery Of the houst
It a price much less than the hous 81
,ost the state.
Settlement under the decision o.
he court, it is believed, will reduce
he losses Of the Home Building As
since it is declared tht
'alue Of the houses In most ease.
8 something more than the con
.ract price claimed by the person:
'or whom they we're built. 4
In CONSUMING the law to meai
hat the price Of houses built coult
rot exceed 5000 the supreme copr'
lecided . questions which was haiti
ID over IN political campaigns. Non
PARTISAN Officials declaring that tn,
section Of the. Law meant that shs
aouse could cost more than 96, ,O0t
but that the indebtedness Of TIL,
person for whom built could NJ ex
:eed $1,000. The ceurt said
@tseoo Llnisa4lsn
"From theSS pprtions Of The act