Berverdor, Inc. v. Salyer Farms

218 P.2d 138, 97 Cal. App. 2d 459, 1950 Cal. App. LEXIS 1556
CourtCalifornia Court of Appeal
DecidedMay 10, 1950
DocketCiv. 4035
StatusPublished
Cited by5 cases

This text of 218 P.2d 138 (Berverdor, Inc. v. Salyer Farms) 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
Berverdor, Inc. v. Salyer Farms, 218 P.2d 138, 97 Cal. App. 2d 459, 1950 Cal. App. LEXIS 1556 (Cal. Ct. App. 1950).

Opinion

SHEPARD, J. pro tem.

Plaintiff sues for $11,100 rent on a farm lease, together with interest from due date, costs and attorneys’ fees. Trial was had before the court without a *460 jury and judgment was rendered for plaintiff for $7,479.61, including $1,000 attorneys’ fees and for costs, but without interest. Both plaintiff and defendants have appealed.

About 7 August, 1944, plaintiff let to defendants by written lease certain lands in Kings County, near Tulare Lake. This land had in some previous years been irrigated with water from Tulare Lake.

The lease provides for a 'term of three years from 1 October, 1944, at a total rental of $33,300, payable $5,500 on 1 October and 1 June each year of the term. It provides that lessee shall pay lessor’s expenses, including attorneys’ fees, to be fixed by the court in any action to enforce payment of rent due. Other stipulations of the lease relate to farming methods, oil drilling rights, assignments, repair, indemnity, surrender and holding over, and do not directly concern this controversy.

Defendants failed to pay the stipulated rent amounting to $11,100 for the last year of the term and plaintiff sued to recover that sum, with interest and costs and attorneys’ fees.

Defendants’ answer admits the execution of the lease but avers that the rental payments were conditioned upon it being profitable for defendants to pay the rentals referred to, alleges such payments were unprofitable and that the written lease referred to in plaintiff’s complaint is only a part of the whole agreement. Then follows a statement of income and expense from the farm operations to show that said payments were actually unprofitable. Failure to payáis admitted, but defendants aver nothing is due. The allegation of the lease provision for attorneys’ fees is admitted but the necessity of bringing the action is denied.

Affirmatively, the defendants allege that 14 June, 1944, Eugene M. Berger was the agent of plaintiff; that said Berger, acting for plaintiff, agreed to the adjustment of rent “in the event it became unprofitable for the defendants to pay the rental referred to in plaintiff’s complaint”; that the lease dated 7 August, 1944, was only a part of the agreement between the parties; that payment of the rental for the last year of the term was in fact unprofitable; that defendants are entitled to an adjustment of rent; that defendants had notified plaintiff of these facts and asked adjustment prior to the action commenced.

The answer does not allege in any way that there is a mistake or imperfection of the lease alleged in the complaint nor is the validity of the lease put in dispute. No extrinsic ambiguity or illegality or fraud is alleged, It simply avers that *461 the lease alleged in the complaint is only a part of the total agreement.

At the trial, over the objection of plaintiff, the defendants were allowed to introduce certain letters. The principal one of these was signed by Eugene M. Berger, the managing agent of plaintiff, and read in part as follows:

“ . . . June 14, 1944.

“As I told you, if during the term of your lease any conditions take place which will make it commercially unprofitable for you to continue to pay that rental, I shall be very glad to sit down and discuss with you the changed conditions, with a view of helping you out.

“Within the next several days, I shall be glad to have the lease completed for your signature.”

On the contention that this letter was a part of the lease agreement and was ambiguous, defendants were permitted to introduce a number of other letters and a large volume of parol evidence, going back several years, to explain the meaning of said quoted letter. This parol evidence included vital conversations with said negotiating agent Berger (who died shortly after execution of the lease) held prior to the signing of the lease. The one upon which greatest reliance is placed by defendants was during a long distance telephone call between Berger and E. 0. Salyer at the time the lease (already signed by plaintiff) was received through the mail by Salyer. Salyer called attention to the fact that the lease did not include a provision for adjustment, as referred to in said quoted letter, and Berger replied:

“We’ve spent enough time on the dam lease—-we would like to go ahead—the letter will protect you—we had worked together enough—I will protect you-—go on farming and forget about it—sign it and send it back.”

It ’also included evidence that in the year for which rent was not paid (1946-1947) Tulare Lake went dry and water from other sources came too late to make a profitable crop.

There was also admitted evidence concerning cropping customs in the area relating to the amount or share reasonably allocable to the lessor.

Section 1856 of the Code of Civil Procedure provides that:

“When' the terms of an agreement have been reduced to writing by the parties, it is to be considered as containing all those terms, and therefore there can be between the parties and their representatives, or successors in interest, no evidence *462 of the terms of the agreement other than the contents of the writing, except in the following cases:
‘ ‘ 1. Where a mistake or imperfection of the writing is put in issue by the pleadings;
“2. Where the validity of the agreement is the fact in dispute.
“But this section does not exclude other evidence of the circumstances under which the agreement was made or to which it relates, as defined in section eighteen hundred and sixty, or to explain an extrinsic ambiguity, or to establish illegality or fraud. The'term agreement includes deeds and wills, as well as contracts between parties. ’ ’

Section 1860 of the Code of Civil Procedure provides:

“For the proper construction of an instrument, the circumstances under which it was made, including the situation of the subject of the instrument, and of the parties to it, may also be shown, so that the judge be placed in the position of those whose language he is to interpret. ’ ’

Section 1625 of the Civil Code provides:

“The execution of a contract in writing, whether the law requires it to be written or not, supersedes all the negotiations or stipulations concerning its matter which preceded or accompanied the execution of the instrument.”

The proper application of section 1860 of the Code of Civil Procedure is explained in United Iron Works v. Outer Harbor Dock & Wharf Co., 168 Cal. 81 [141 P. 917], where the court says, at page 84:

“This rule of evidence is invoked and employed only in cases where upon the face of the contract itself there is doubt and the evidence is used to dispel that doubt, not by showing that the parties meant something other than what they said but by showing what they meant by what they said. ’ ’

In the case of Cline v. Smith, 96 Cal.App.

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Bluebook (online)
218 P.2d 138, 97 Cal. App. 2d 459, 1950 Cal. App. LEXIS 1556, Counsel Stack Legal Research, https://law.counselstack.com/opinion/berverdor-inc-v-salyer-farms-calctapp-1950.