Lambdin v. Przyborowski

Barnes, J., delivered the opinion of the Court. ¹⁰⁹ This is an appeal from an order of the Circuit Court of Baltimore County (Jenifer, J.) granting specific performance of a contract for the sale of land. Stanley J. Przyborowski and his wife (the Przyborowskis), complainants below and appellees here, owned property known as 6905 Railway Avenue, Dundalk, Baltimore County, Maryland. They instituted an action against Edward C. Lambdin and his wife (the Lambdins) after the Lambdins refused to consummate the purchase of the Railway Avenue property. The Lambdins filed a cross-bill of complaint asking that their deposit be returned.

The Przyborowskis and Lambdins entered into a contract which provided, inter alia, after reciting the down-payment and the amount to be paid at settlement, that: “The balance of Twenty-one Thousand Dollars (21,000) to be financed through a lending institution for a period of twenty years (20) at the buyers’ expense. Settlement to be within ninety days (90) from the date first mentioned above at which time possession shall be given. “In the event that this loan cannot be arranged, then all monies of the deposit shall be refunded to the buyers; and this contract shall become null and void.” The Chancellor found that the Lambdins made application for a loan, but that the Equitable Trust Company’s (Equitable) maximum loan commitment on the Railway Avenue property was $15,000 over a 15 year period. When Mr. John J. Yeager (Yeager), real estate agent for the Przyborowskis, was informed of the Lambdins’ difficulties, he received Mr. Lambdin’s-. permission to obtain the necessary financing elsewhere. Yeager approached the Homewood-Clinton Savings and Loan Association, Inc. (Association) and made formal application for a $21,-000 loan over a 20 year period as stipulated in the contract.

Mr. George Hofferbert (Hofferbert), an attorney who represented Homewood-Clinton, informed Yeager that his Association would lend $19,500, $1,500 short of the contemplated mortgage of $21,000. The Chancellor further found that Yeager then informed Lambdin of the situation, explained that he (Yeager) would hypothecate $750, which would result in a loan of $20,- ¹¹⁰ 250 from the Association, if the Lambdins would agree to raise an additional $750 in cash and that Lambdin agreed to this arrangement. Hofferbert, the Chancellor found, also agreed to the arrangement. Prior to the setting of the final settlement date Lambdin and Hofferbert discussed the financing in detail and Hofferbert testified that Lambdin authorized him to proceed with the consummation of the transaction.

We are of the opinion that the Chancellor’s order granting specific performance cannot stand in that the requirements of the Statute of Frauds have not been met. The applicable provision of the statute, found in Alexander, British Statutes in Force in Maryland, (Coe Edition) Volume II at 690, provides: “And be it further enacted by the Authority aforesaid, That from and after the said four and twentieth Day of June, no Action shall be brought whereby,¡ * * * upon any Contract or Sale of Lands, Tenements, or Hereditaments, or any Interest in or concerning them * * * unless the Agreement upon which such Action shall be brought, or some Memorandum or Note thereof shall be in Writing, and signed by the Party to be charged therewith, or some other Person thereunto by him lawfully authorized.” This Court has said, in considering the sufficiency of a writing necessary to satisfy the Statute, that: “* * * a memorandum, in order to make enforceable a contract within the Statute of Frauds, may be any document or writing, formal or informal, signed by the party to be charged or by his agent actually or apparently authorized thereunto,