American Casualty Co. v. Curran Productions, Inc.

212 Cal. App. 2d 386, 28 Cal. Rptr. 131, 1963 Cal. App. LEXIS 2854
CourtCalifornia Court of Appeal
DecidedJanuary 28, 1963
DocketCiv. 26493
StatusPublished
Cited by8 cases

This text of 212 Cal. App. 2d 386 (American Casualty Co. v. Curran Productions, Inc.) is published on Counsel Stack Legal Research, covering California Court of Appeal primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
American Casualty Co. v. Curran Productions, Inc., 212 Cal. App. 2d 386, 28 Cal. Rptr. 131, 1963 Cal. App. LEXIS 2854 (Cal. Ct. App. 1963).

Opinion

FOURT, J.

This is an appeal from a judgment entered after a motion for summary judgment was granted in favor of respondent, decreeing that appellant take nothing by its cross-complaint.

The chronology of events is as follows:

On October 10, 1961, cross-complainant (hereinafter sometimes referred to as appellant) filed its cross-complaint for breach of contract and upon written indemnity agreement. Therein two causes of action are asserted. The first cause of action is directed against cross-defendants other than respondent. The second cause of action is directed specifically against this moving cross-defendant (hereinafter sometimes referred to as respondent).

The substance of the allegations of the second cause of action is that prior to August 2, 1960, Hanks & Higgins Specialties, Inc. (hereinafter referred to as Hanks) had entered into a written contract with C.H. Leavell and Company (hereinafter referred to as Leavell) by which Hanks agreed to furnish and install a certain track, curtain and auditorium chairs at an army proving ground in Arizona. Appellant, as surety, issued a contract bond on behalf of Hanks, guaranteeing the performance of the Hanks-Leavell contract. Also, prior to August 2, 1960, Hanks entered into a written contract with Twaits-Wittenberg Company and Morrison-Knudsen Company, Inc., a joint venture (hereinafter referred to as Twaits), whereby Hanks “agreed to provide all necessary labor and material necessary to complete the installation of all opera chairs, back paneling, aisle ends, and ashtrays in certain rooms in the new Hall of Records Building in the City of Los Angeles.” Appellant, as surety, issued a contract bond on behalf of Hanks, whereby appellant became surety for the performance of the Hanks-Twaits contract.

Prior to August 2, 1960, Hanks defaulted on each of the two contracts mentioned above and demand was made by Leavell and Twaits that appellant complete or arrange for the completion of these two contracts under the terms of appellant’s two contract bonds.

Appellant further alleges in paragraph VII of the second cause of action that on or about August 2, 1960, appellant and respondent entered into an oral agreement whereby *389 respondent agreed to perform the Hanks-Leavell contract for the agreed sum of $30,493 and further agreed to perform the Hanks-Twaits contract for the agreed price of $14,697; that with regard to the Hanks-Leavell contract, appellant and respondent executed a written agreement and respondent fully performed the work and was paid the agreed sum of $30,493. “That with regard to the contract between Hanks . . . and Twaits . . . [respondent] did agree with . . . [appellant] to enter into a written contract with Twaits ... to perform the work agreed to be performed by Hanks . . . for the sum of $14,697, under the identical terms, provisions and conditions as the contract by and between said contractor and Hanks . . .”

Appellant further alleges (paragraph IX) that on or about June 5, 1961, Twaits notified appellant that respondent had refused to execute a contract on terms identical to the HanksTwaits contract and that respondent had advised Twaits respondent would not enter into or execute such a contract; that on or about June 6, 1961, appellant notified respondent in writing of the information received from Twaits and did advise respondent that appellant would look to respondent for any damages sustained by appellant by reason of respondent’s failure to enter into a contract with Twaits. It is then alleged (paragraph X) that Twaits filed the within action against appellant to recover the sum of $13,073 under and pursuant to the provisions of appellant’s contract bond, that “in the event that the court should adjudge and decree that . . . [appellant] is liable to . . . [Twaits] in any sum or sums whatsoever, then in that event. . . [appellant] shall be damaged in such sum or sums by reason of the breach of . . . [respondent’s] oral agreement” and “shall be entitled to judgment over against . . . [respondent] for any such sum or sums awarded to . . . [Twaits].”

On December 27, 1961, respondent filed a notice of motion for summary judgment. The motion was based upon “the affidavit of Harry M. Hanks . . . the deposition of William J. Conners . . . and the complete file and record of this ease. ’! 1 It is respondent’s position that the contract sued upon violated the statute of frauds.

Appellant filed its points and authorities and declaration in opposition to respondent’s motion for summary judgment *390 on January 9, 1962. On the same day respondent filed supplemental points and authorities.

A minute order dated January 30, 1962, and entered February 1, 1962, discloses that respondent’s motion was granted. Judgment was entered February 8, 1962, and this appeal follows.

The rules relating to summary judgment are set forth in People ex rel. Mosk v. City of Santa Barbara, 192 Cal.App. 2d 342, 349 [13 Cal.Rptr. 423] as follows:

11 [2] The function of the trial court in considering a motion for summary judgment is to determine whether there exists a triable issue of fact. [Citations.] [3] Whether a triable issue of fact exists is determined by the sufficiency of the affidavits of the parties. [Citations.] [4] Where the affidavits do not present any triable issue of fact, then the problem is resolved into a qusetion of law and the trial court determines the issues of law. [Citations.]

“ [5] As stated in Eagle Oil & Refining Co. v. Prentice, 19 Cal.2d 553 at page 556 [122 P.2d 264] :

‘Because the procedure is summary and presented on affidavits without the benefit of cross-examination, a trial by jury and opportunity to observe the demeanor of witnesses in giving their testimony, the affidavits filed on behalf of the [plaintiff] should be liberally construed to the end that he will not be summarily deprived of the full hearing available at a trial of the action and the rights incident thereto.
“ [6] ‘The procedure is drastic and should be used with caution in order that it may not become a substitute for existing methods in the determination of issues of fact. [Citation.]
“ [7] ‘For these reasons it may further be said that the affidavits of the moving party, the [defendant] in this case, should be strictly construed and those of his opponent liberally construed. [Citations.] [8] And in this connection it may be further observed that the better rule is that the facts alleged in the affidavits of the party against whom the motion is made must be accepted as true, and that such affidavits to be sufficient need not necessarily be composed wholly of strictly evidentiary facts. [Citation.] ’
“ [9] It is, of course, fundamental that the granting of a summary judgment where a triable issue of fact or defense is shown constitutes reversible error. [Citations.]”

The first question to be resolved is whether the agreement *391

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212 Cal. App. 2d 386, 28 Cal. Rptr. 131, 1963 Cal. App. LEXIS 2854, Counsel Stack Legal Research, https://law.counselstack.com/opinion/american-casualty-co-v-curran-productions-inc-calctapp-1963.