Wockenfuss v. Kasten Construction Co.

Singley, J., delivered the opinion of the Court. In 1964, Mr. Wockenfuss sold some property which he owned in Anne Arundel County to Luther Construction Company, Inc. (Luther) for $103,475. At settlement he was paid $18,000 in cash and was given a purchase money mortgage for $85,475. The mortgage provided that interest at the rate of 5% would be paid in quarterly instalments, the first of which would be due 10 June 1964; that the unpaid balance of the debt would be due and payable on 10 March 1972; that the mortgagor could prepay the debt in whole or in part at any time after 10 March 1965 upon the payment of a 5% penalty; and that Wockenfuss, by giving 30 days’ written notice prior to any anniversary date of the .mortgage, could exact a payment of “up to” $8,000 in reduction of the mortgage debt. ⁵⁴³ The quarterly interest payments due in June and September 1964 were not paid until October, although for some unexplained reason a principal payment of $2,300 had been made in September.

In February 1965, Wockenfuss demanded that a payment of $8,000 in reduction of the mortgage debt be made on 10 March. By June, Wockenfuss was told that Luther was arranging some new financing. On 1 July, Wockenfuss attended a settlement at a Baltimore title company, expecting, he said, to receive a check for $8,000. Instead, he was handed a check for $82,282.33, and was asked to sign a “long” form of release, which read in part: “WITNESSETH, THAT WHEREAS all the covenants of the hereinafter described Mortgage have been performed and the whole sum of money and interest secured thereby have been paid, the said party of the first part does hereby grant and release unto the said party of the second part, its successors and assigns, in fee simple, all that lot or parcel of land and premises described in a Mortgage from the said party of the second part to the said party of the first part, dated March 10,1964 * * According to Wockenfuss’ bill of complaint, at this juncture he “* * * became very disturbed emotionally and advised all parties that he had not been prepared to receive what was allegedly the balance due and advised all parties present, that he was not sure that the total sum offered was correct and that there might be more money coming to him.

He was then informed by a person whom he believes to be the settlement officer that any mathematical errors would be adjusted with Luther Construction Co., Inc. after the settlement. This was confirmed by Mr. Harry H. Meeks, President of Luther Construction Co., ⁵⁴⁴ Inc. [He] was induced, as a result of the representations of the settlement officer and the President of Luther Construction Co., Inc., to sign the Eelease [of the mortgage] * * Less than a week after the settlement Luther was merged into the Kasten Construction Company, Inc. (Kasten). More than four years and two months later, Wockenfuss instituted an action in equity against Kasten in the Circuit Court for Baltimore County, in which he sought a reformation of the release and an in personam decree for $8,257.15, the amount he alleged still to be due, consisting of unpaid principal of $2,722.47; a pre-payament penalty of $4,158.50; and interest on principal and on the penalty of $1,376.18. Kasten demurred, averring that laches appeared on the face of the bill of complaint, which also conceded that rights had vested in intervening purchasers from Kasten.

From an order sustaining the demurrer without leave to amend, Wockenfuss has appealed. The chancellor concluded that