Barnes v. Morrison

282 P. 986, 102 Cal. App. 152, 1929 Cal. App. LEXIS 97
CourtCalifornia Court of Appeal
DecidedNovember 25, 1929
DocketDocket No. 3489.
StatusPublished
Cited by8 cases

This text of 282 P. 986 (Barnes v. Morrison) 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
Barnes v. Morrison, 282 P. 986, 102 Cal. App. 152, 1929 Cal. App. LEXIS 97 (Cal. Ct. App. 1929).

Opinion

THOMPSON (R. L.), J.

This is an appeal from a judgment of dismissal in an action for equitable relief. The judgment was rendered after separate demurrers to the complaint had been sustained without leave to amend. The action involves a claim to growing crops, on the part of a purchaser of real property at a probate sale after he had failed to fulfill the conditions specified and notice of the termination of sale had been given.

The complaint alleges that the plaintiff is the duly appointed administrator of the estate of Amelia Diseh, deceased; that the estate was possessed of farm land in Yuba County; that upon proceedings duly had this land was sold by the administrator for $40,000, and a return of said sale was regularly made to the probate court pursuant to the provisions of section 1552 of the Code of Civil Procedure; that upon the hearing of said return of sale the defendant F. E. Johnson increased the bid for the farm to $44,000, depositing on account of the purchase price the sum of $4,400; thereupon the court confirmed the sale to Johnson and directed the execution of the deed of conveyance upon pay *155 ment of the balance of the purchase price; that for more than two months thereafter the purchaser failed to make the final payment of the purchase price and otherwise failed to conform to the conditions of sale; thereupon the administrator duly tendered to said purchaser a good and sufficient deed of conveyance to said land free from encumbrance and demanded payment of the balance of the purchase price, which the purchaser then and ever since has failed and refused to pay, declaring that he was financially unable to procure the money; thereupon the administrator duly notified the purchaser of his breach of the terms and conditions of sale and that the administrator for that reason elected to rescind the sale and thereupon declared a forfeiture of the $4,400 deposit; that thereafter, without the knowledge or authority of the plaintiff, the defendant Johnson wrongfully purported to lease said property to the defendant Morrison upon terms entitling him to share in the hay and bean crops which were to be produced thereon; that pursuant to said pretended lease the defendant Morrison took immediate possession of the premises and planted thereon seventy acres of beans and several acres of alfalfa hay, which crops at the time of filing this complaint were ready for harvesting and were of the value of $10,000; that the defendants are without any title or interest in said premises or the growing crops thereon, but that they claim a landlord’s and tenant’s interest therein, respectively, and threaten to harvest and market the same for their own benefit; that the plaintiff demanded possession of the premises and crops, which was refused; that the defendants are insolvent and that the plaintiff has no speedy or adequate remedy at law.

The complaint prayed for a decree forfeiting said $4,400 deposit, terminating the defendants’ claim to said real property and the crops growing thereon, and that they be enjoined from interfering with plaintiff’s right of possession and title thereto and that a receiver be appointed to harvest and market the crops and to take charge of the proceeds' thereof pending the litigation.

Upon application therefor a receiver was duly appointed, but subsequently this order was rescinded and the appointment was revoked. From this last-mentioned order the plaintiff has also appealed.

*156 Separate demurrers were filed by each defendant on the ground of uncertainty and for failure to state facts sufficient to constitute a cause of action. These demurrers were sustained and the plaintiff was denied the privilege of amending his complaint. Thereupon a judgment of dismissal was entered, from which this appeal was perfected.

We are not informed of the theory upon which the defendants support this judgment and proceeding for they have filed no points and authorities. It appears to have been assumed that equity had no jurisdiction to afford a remedy for the failure of a purchaser of real property at a probate sale to comply with the conditions of sale and that the exclusive redress was found in the necessity of petitioning the court for a resale of the property pursuant to section 1554 of the Code of Civil Procedure, which provides in part: “ ... If, after the confirmation, the purchaser neglects or refuses to comply with the terms of the sale, the court may, on motion of the executor or administrator, and after notice to the purchaser, order a resale to be made of the property. If the amount realized on such resale does not cover the bid and the expense of the previous sale, such purchaser is liable for the deficiency to the estate.”

Section 1554, supra, does not furnish the exclusive remedy for damages sustained by an estate for failure on the part of a purchaser of real property at a probate sale to fulfill the conditions of sale. The remedy provided by that section may be neither speedy nor adequate. While that section provides that in the event that a purchaser fails or refuses to comply with the conditions of sale, the court may order a resale of the property. This is not mandatory. Obviously, the authorization for a sale or resale of the property of an estate depends upon the needs and best interest of the estate as provided by section 1536 of the Code of Civil Procedure. The formal written bid for the purchase of real property at a probate sale which is conducted pursuant to law, together with the deposit of ten per cent of the purchase price as required by law, is ah acceptance of the offer to sell and constitutes a contract to purchase the property upon the terms specified in the petition for confirmation. Specific performance, ejectment or any other appropriate equitable proceeding will lie for *157 a breach, of the terms of sale. The order confirming the sale does not convey the title, but merely authorizes the conveyance upon specified terms and conditions. The failure on the part of the proposed purchaser to perform the conditions constitutes a breach, which creates a liability for damages sustained.

It has been definitely held that section 1554 of the Code of Civil Procedure is not the exclusive remedy for a breach of conditions for the purchase of real property at a probate sale. Under such circumstances the personal representative of the estate may maintain an action to recover the balance of the purchase price or for specific performance. (Crouse v. Peterson, 130 Cal. 169 [80 Am. St. Rep. 89, 62 Pac. 475, 615]; McCarty v. Wilson, 184 Cal. 194, 200 [193 Pac. 578; 580].) In the case last cited it is said:

“By virtue of the right conferred by section 1554 of the Code of Civil Procedure, the property might have been resold and the present purchaser held responsible if, on the second sale, enough was not realized to pay costs and the amount of the present bid, but that remedy is not exclusive and does not prevent a resort by the executor to a suit for specific performance.”

The defendant, having breached his agreement to purchase the property, thereby waived his title and claim thereto. As the court said in Tuso v. Green, 194 Cal. 574, at page 583 [229 Pac.

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Cite This Page — Counsel Stack

Bluebook (online)
282 P. 986, 102 Cal. App. 152, 1929 Cal. App. LEXIS 97, Counsel Stack Legal Research, https://law.counselstack.com/opinion/barnes-v-morrison-calctapp-1929.