Michigan Pipe Co. v. Fremont Ditch, Pipe Line & Reservoir Co.

Citations

• 111 F. 284
• 49 C.C.A. 324
• 1901 U.S. App. LEXIS 4377

Syllabus

<p>1. Equity—Complainant must Come with Clean Hands.</p> <p>A court of equity will leave to his remedy .at law—will refuse to interfere to grant any relief to—one who, in the matter or transaction concerning which he seeks its aid, has been guilty of bad faith, unrighteous dealing, or unconscionable acts.</p> <p>3. Same.</p> <p>Courts of equity will not entertain bills to enforce forfeitures, but will leave the parties to their remedies at law.</p> <p>3. Same—Complainants Barred by Unconscionable Acts.</p> <p>Vendors sold and conveyed real property, water rights, and rights of way under a contract whereby the vendees agreed to pay the purchase price provided the vendors first paid off and satisfied the incumbrances upon the property, and whereby the vendees also agreed to retransfer the property if they, failed to construct waterworks according to the provisions of a certain ordinance. They constructed the waterworks under other ordinances substantially but not completely in accordance with the provisions of the ordinance mentioned in the contract. The vendors did not pay off the incumbrances, but, without notice of their failure, foreclosed them, took the title under the foreclosures, and sold the property to a third party. The vendees brought suits and obtained decrees avoiding these foreclosures, and adjudging that the title under them was held in trust, and should be conveyed to the vendees. Thereupon the ■vendors brought a suit in equity to compel a reconveyance of the property from the vendees to the vendors because they had not constructed the waterworks in exact accordance with the contract, and because they had not paid the purchase price. , Held, the vendors were barred from relief in equity, and remitted to their remedies at law, by their bad faith, sharp practice, and unconscionable acts in foreclosing the mortgages they had agreed to pay.</p> <p>(Syllabus by the Court.)</p>