Court Opinion

ID: 9665391
Source: CourtListenerOpinion
Date Created: 2023-08-24 00:47:11.463658+00
Date Added: 2024-06-11T18:15:15.289822
License: Public Domain

COLEMAN, Justice
(dissenting):
In this case, the question is raised whether a buyer of a chattel is entitled to *294proceed in equity to rescind a contract on the ground that the seller has breached a contract to repair the chattel.
It appears to be established that “* * *. there were neither allegations nor evidence to establish fraud.” Also, it does not appear that there was any mistake which entered into the making of the contract.
“ ‘Courts of equity do not take jurisdiction merely for the purpose of declaring a rescission, but only for the purpose of administering some form of equitable relief or protection not available in other forums, or where, by reason of the insolvency of the offending party, a judgment at law might fail to compensate the injured party, or to place him in statu quo/ Hafer v. Cole, 176 Ala. 242, 249, 57 So. 757, 760.” Cooper v. Drennen, 206 Ala. 549, 90 So. 787.
To like effect, see Nicolopoolos v. Donovan, 221 Ala. 16, 17, 127 So. 543, 544, where this court held that a bill for rescission of a contract for purchase of real estate was subject to demurrer on the ground that “(1) There is no equity in the bill. (2) Complainants have a complete and adequate remedy at law for the enforcement of their rights.”
“ * * * ‘The doctrine is settled that the exclusive jurisdiction to grant purely equitable remedies, such as cancellation, .■ will not be exercised, * * * in any case where the legal remedy, either affirmative or defensive, which the de- . frauded party might obtain, would be adequate, certain, and complete’ * * National Life & Accident Ins. Co. v. Propst, 219 Ala. 437, 438, 122 So. 656.
See also Goltsman v. American Life Ins. Co., 248 Ala. 151, 26 So.2d 596.
So, the only reason for allowing the instant complainant to maintain a suit in equity for breach of contract is that his remedy at law is not adequate. It is contended that his remedy at law is not adequate because he could not obtain relief against Ford Motor Credit Company in an action at law.
As I read the final decree, the trial court did not find it necessary to award any relief against Ford Motor Credit Company. The trial court did not order Ford Motor Credit Company to do anything. I find only two paragraphs in the decree wherein reference is made to Ford Motor Credit Company. In those paragraphs the court orders:
“3. That the said * * * automobile described in the complaint * * * is now the property of the respondent Tiger Motor Company, Inc., subject to the chattel mortgage or contract thereon which was transferred and assigned to the respondent Ford Motor Credit Company, and the said Tiger Motor Company, Inc., be, and it is hereby, authorized and directed to move said station wagon from the premises of the complainant, at its own expense, within 10 days from the date of this decree.
“4. That the respondent Tiger Motor Company, Inc., be, and it is hereby, ordered and directed to pay off said note and chattel mortgage, or contract, transferred and assigned by it to the said Ford Motor Credit Company, and discharge and satisfy said obligation in full, and cause any and all mortgage and lien records where such instruments may have been recorded to be marked satisfied of record within thirty days from the date of this decree, and immediately upon the expiration of thirty days from the date of this decree to report to this Court how and by what manner it has complied with this provision of this decree.”
The court never did order cancellation of complainant’s note and mortgage. The court merely ordered Tiger Motor Company, Inc. to pay the note and have the mortgage record satisfied. The statute compels the mortgagee to satisfy the record when the mortgage is paid. Title 47, §§ 178, 179. •'
*295In substance and effect, the decree is nothing more than a money judgment against Tiger Motor Company, Inc. Such a judgment could be awarded at law and would make complainant whole.
As I understand the case, complainant had the use of the automobile for eleven months and drove it over 20,000 miles. The point is relatively a minor one, and it may be that respondents are not entitled to be placed in statu quo, but the general rule as to rescission is that the party seeking rescission should restore the parties to their original position if he offers to do equity.
With respect to the right of complainant to maintain this suit in equity, in a jurisdiction where the separateness between law and equity is maintained, this case is certainly one of first impression and may be sui generis. I would sustain the demurrer and order the case transferred to the law side. Title 13, § 149, Code 1940.