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Contracts Keyed to Marshall
Lonsdale v. Chesterfield
Citation:
662 P.2d 385 (1983)Facts
In 1968, Chesterfield Land, Inc. platted a portion of a development known as Sansaria on land along the Oregon coast. It then sold 81 lots to various purchasers by real estate contracts. In each sales contract Chesterfield agreed to install a water system for the use of the plat. In turn, each purchaser agreed to pay a portion of the cost of installation and to use the water system. Chesterfield subsequently sold its vendor’s interest in some of these real estate contracts to members of the petitioner class who purchased them for investment purposes. The class members paid Chesterfield money and received in return an assignment of the vendor’s interest together with a deed to the land corresponding to that particular real estate contract. In 1969, Jack Chesterfield, the sole owner of Chesterfield, died. Susan Chesterfield, his widow, then sold the remaining undeveloped portion of the development to Sansaria, Inc. As part of the consideration for the sale Sansaria assumed Chesterfield’s obligation to install a water system for the entire development, including that portion already sold via the real estate contracts. Chesterfield was later dissolved and its assets distributed to Susan Chesterfield. Despite the terms of this contract, neither party installed the system.
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