Born v. Castle

167 P. 138, 175 Cal. 680, 1917 Cal. LEXIS 741
CourtCalifornia Supreme Court
DecidedAugust 8, 1917
DocketS. F. No. 7309.
StatusPublished
Cited by8 cases

This text of 167 P. 138 (Born v. Castle) is published on Counsel Stack Legal Research, covering California Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Born v. Castle, 167 P. 138, 175 Cal. 680, 1917 Cal. LEXIS 741 (Cal. 1917).

Opinion

*681 LORIGAN, J.

This is the second appeal taken in this action, which was brought to recover the sum of two thousand dollars paid by plaintiff in negotiations respecting the purchase of a lot of land in San Francisco. The original complaint was framed on the theory that a contract for the sale and purchase of the property had been entered into between defendants and plaintiff; that defendants had failed to comply with its terms and plaintiff was therefore entitled to the sum of two thousand dollars deposited by him with defendants at the time the alleged contract had been entered into between them. During the trial of the action under the original complaint, however, it was disclosed by evidence produced on the part of defendants that the contract alleged, and upon which plaintiff based his right of action, had never been executed by both parties; that while a form of contract for the sale and purchase of the property described had been prepared for signature by them both and the two thousand dollars sued for had been paid as a deposit by plaintiff to persons purporting to represent defendants as their agents and said sum paid over to defendants, still no contract had ever been executed between the parties, nor was any agreement ever reached between them respecting terms of sale and purchase of said property. In fact, it appeared clearly that the two thousand dollars involved in the action was paid by plaintiff and accepted by defendants through one purporting to act as agent of the latter under a misapprehension and mutual mistake of both parties upon the subject. When during the trial this condition appeared from the evidence, plaintiff moved the court for leave to file an amended complaint in conformity to this proof and setting up the facts showing such misapprehension and mutual mistake respecting the execution of a contract between them under which the deposit was paid. The court refused to grant plaintiff leave to do so, and after judgment for defendants plaintiff appealed, presenting thereon the correctness of the ruling of the trial court in denying his said application. The appeal was heard by the district court of appeal; which reversed the judgment, holding that the trial court should have allowed the filing of the amended complaint, and remanded the cause with directions to the lower court to allow plaintiff to do so. (Born v. Castle, 22 Cal. App. 282, [134 Pac. 347].) On remission to the trial court said amended complaint was filed, the cause *682 tried, and a judgment entered in favor of plaintiff. It is from this judgment and an order denying their motion for a new trial that the defendants take this appeal.

The substantial points made for a reversal are not many nor difficult of disposition. It is claimed that the finding of the court that there was a mutual mistake by both parties in believing that an acceptance had been made of certain terms of sale and purchase of the property, that a contract in writing had been executed by the parties embodying them, and the further belief that the payment of the money by plaintiff to defendant had been made in conformity with such an executed contract, was not justified by the evidence. But there can be no doubt on this subject. There is no substantial difference between the evidence presented on the first trial, which it was held on appeal clearly required allowing the filing by plaintiff on his motion of an amended complaint as to mutual mistake, and that presented on this second trial resulting in the finding that there was such mutual mistake and in awarding a judgment in his favor based upon it.

Recurring to that evidence briefly: It appears that Baldwin & Howell, real estate agents in San Francisco, had applied to defendants for written authorization to sell this property for them, which they refused to give, informing them, however, that the first real estate agency that came to them with a bona fide offer at a specified price might have the property for sale. On the same day that this application for authorization to sell was sought from defendants, an employee of said Baldwin & Howell called on the agent of plaintiff at the office of the latter with a view of effecting a sale to the plaintiff. The negotiations of these respective agents on the subject resulted in a form of contract being drawn up by them for their supposed parties principal, whereby it was agreed that plaintiff was to purchase the property for a sum specified in the prepared contract and to pay to defendants one thousand dollars as a deposit on account; that plaintiff was to have sixty days to examine title to the property and certain circumstances were specified respecting this examination of the title and respecting the title itself, under which the one thousand dollars was either to be returned to plaintiff or forfeited. The contract also contained a provision that it was made subject to the approval of the owners of the property. This form being thus prepared, the *683 employee of Baldwin & Howell negotiating the contract thereupon sighed it for the defendants. The agent of plaintiff signed it in his behalf, and in conformity to its terms paid to the employee of Baldwin & Howell for the defendants the one thousand dollar deposit called for. Thereafter, and on the same day this contract was prepared and signed, it was presented by the said employee of Baldwin & Howell to the defendants at their office, and the one thousand dollars turned in there. Defendants, however, refused to approve or affirm the contract. Another agreement was prepared by them in its place as to the sale and purchase of the property differing from the first in this, that it required a deposit of two thousand dollars instead of one thousand dollars, and allowed only thirty days instead of sixty for an examination by plaintiff of the title to the property. While these were the only changes, they were, of course, changes in regard to material matters from the original contract. Defendant A. E. Castle, who claimed to be the sole owner of the property, immediately, with the assistance of other members of the firm then in the office thereof, prepared and then signed and approved this second contract as thus drawn and delivered it to the agent of Baldwin & Howell, as embodying his terms for the sale of the property. For some reason or other this contract was never delivered to the plaintiff or his agent nor presented for his approval by the employee of Baldwin & Howell who took it or anyone else, and in fact plaintiff never learned of the facts concerning the rejection of the first contract and the making or existence of the latter one until these matters were disclosed in the testimony produced by defendants upon the first trial, some four years thereafter. On the same day that these contracts were drawn and after the preparation of the second one the employee of Baldwin & Howell informed plaintiff that the defendants demanded a deposit of two thousand dollars instead of one thousand dollars, which the plaintiff forthwith made. This was the only information he did give him on the subject. He was not informed that there had been any other change in the contract originally signed or that it had not been approved by defendants or that any other contract had been drawn, but, on the contrary, was permitted to believe that in every other respect than the amount to be deposited the contract stood as originally drawn.

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Bluebook (online)
167 P. 138, 175 Cal. 680, 1917 Cal. LEXIS 741, Counsel Stack Legal Research, https://law.counselstack.com/opinion/born-v-castle-cal-1917.