## Facts

- Purchasers (the Camerons) and sellers (the Bensons) entered a May 1974 land sale contract requiring delivery, on full payment, of a deed conveying title free and clear of encumbrances.
- In October 1978, a preliminary title report disclosed recorded judgment liens and a mortgage lien affecting the property.
- In November 1978, the Camerons notified the Bensons they intended to pay the remaining balance and demanded the deed and promised title insurance.
- After obtaining a second title report that did not list the liens, the Bensons tendered a bargain and sale deed and a title insurance policy issued by the second company.
- The Camerons rejected the tender because the liens remained outstanding, meaning title was not free of encumbrances.
- The Camerons sued for specific performance; alternatively, they sought a money award equal to the property’s value minus the unpaid contract balance.
- The trial court granted specific performance and also entered an alternative money judgment if the Bensons failed to convey within 60 days, valuing the property as of trial.
- The Court of Appeals modified the money judgment, applying a general rule that damages are measured at the time of breach.
- The Oregon Supreme Court granted review to decide the proper valuation date for the alternative money award in this specific-performance context.

## Issues

1. When a purchaser sues in equity for specific performance of a land sale contract and the decree includes an alternative money judgment if conveyance is not made, should the property be valued at the time of breach or at the time of trial/decree?

## Decision

- The Oregon Supreme Court reversed the Court of Appeals and reinstated the trial court’s damages measure.
- The Court held that, in this setting, the alternative money judgment could properly be based on the property’s value at the time of trial/decree rather than at the time of breach.
- The Court treated the alternative money award as part of the equitable specific-performance remedy, designed to prevent the breaching seller from benefiting from delay.

## Legal Principles

- In an equity action seeking specific performance of a real estate contract, a court may award (or conditionally provide) money relief as a substitute for conveyance if specific performance is not accomplished.
- When money relief functions as a substitute for specific performance, valuation may be tied to the time the court awards specific performance (trial/decree), not automatically to the time of breach.
- The general contract rule measuring damages at the time of breach does not rigidly control equitable relief where it would permit a breaching party to retain appreciation accruing during wrongful nonperformance.

## Conclusion

The court held that, in a purchaser’s equity suit for specific performance of a land sale contract, an alternative money judgment conditioned on the seller’s failure to convey may be valued as of the time of trial/decree, because it serves as a substitute for specific performance and avoids rewarding the seller’s continued nonperformance.


Cameron v. Benson, 295 Or. 98, 664 P.2d 412 (Or. 1983)