Bright v. Gineste

284 P.2d 839, 133 Cal. App. 2d 725, 1955 Cal. App. LEXIS 1695
CourtCalifornia Court of Appeal
DecidedJune 21, 1955
DocketCiv. 16294
StatusPublished
Cited by1 cases

This text of 284 P.2d 839 (Bright v. Gineste) 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
Bright v. Gineste, 284 P.2d 839, 133 Cal. App. 2d 725, 1955 Cal. App. LEXIS 1695 (Cal. Ct. App. 1955).

Opinion

KAUFMAN, J.

This is an appeal from a judgment in favor of defendants in an action by plaintiff for the alleged conversion of personal property. Defendants also filed a cross-complaint but having presented no evidence in support thereof, judgment was entered against them on the cross-complaint.

The complaint herein is for conversion of personal property of the alleged value of $80,000. It was alleged that appellants were lessees and respondents lessors of certain real property in the city of San Carlos, California, and that appellants and certain other parties executed a chattel mortgage on the aforesaid personal property for the purpose of securing rentals under the lease, that said lease was cancelled by respondent Gineste with the consent and approval of respondent Walter on August 22, 1950, and that said cancellation released appellants from all liabilities under said lease. It was further alleged that on September 27, 1950, appellants demanded that defendants as mortgagees deliver a certificate that the mort *727 gage of chattels had been discharged by the cancellation of the lease, or enter such satisfaction of record, which requests defendants decline and still decline to fulfill. Respondents in their answer alleged that prior to the execution of the cancellation of the lease, appellant vacated and abandoned all of the personal property referred to and described in the complaint. For another and separate defense it was alleged that in consideration of the release of claims for further rentals, claims for taxes and other obligations, appellants agreed to relinquish any claim to any personal property located on the leased premises, and particularly all of the personal property described in Exhibit A attached to appellants’ complaint.

Defendants and respondents Gineste and Walter, had been for many years engaged in the cleaning and dyeing business as a corporation, the San Carlos Cleaning and DyeingWorks, Inc. The corporation owned real property in San Carlos, five retail stores, rolling equipment, and all the fixtures and personal property used in the operation of the business, as well as the good will that had been built up through the years. On October 17, 1947, this business, the retail stores and all fixtures, personal property and equipment, together with the good will of said business, were sold to M. D. Rutledge for $100,000. A lease of the real property was agreed upon, and before the completion of the transaction, appellant Samuel Bright purchased a one-half interest in the business, personal property, name and good will purchased by Rutledge from the corporation.

On or about August 21, 1949, a new lease for a 10-year term providing for a total rent of $70,000 was entered into between respondents as lessors and Rutledge as lessee. Subsequently, on or about February 4, 1950, this lease was transferred from Rutledge to appellant Bright upon his purchase of Rutledge’s interest in the business, personal property, fixtures, equipment and assets of the business. Appellant testified that he paid $20,000 in cash and assumed an indebtedness of more than $50,000 to complete this transaction.

In June, 1950, appellants negotiated with certain parties who were to acquire a half interest in the business, and together with them appellants executed a chattel mortgage on the personal property, fixtures and equipment of the San Carlos Cleaners to secure the rentals to become due under the lease. Appellant Bright’s negotiations for a sale of a half- *728 interest in the business fell through, and he continued to operate as sole proprietor.

Appellant Bright and Rutledge had both operated,the business at a loss, and in mid-August, 1950, appellant became so financially involved that further operation appeared impossible. He was on a cash basis with his employees and was unable to meet other indebtedness. Rent under the lease was paid up until August 20, 1950, but there were personal property taxes in the sum of more than $600 which were unpaid and to which a 10 per cent penalty would be attached on September 1, 1950.

There was testimony that in August, 1950, the business consisted only of the main plant, equipment was run down, and the retail stores had all been closed.

On the morning of August 22, 1950, appellant Bright told his foreman, Mr. Herman, that he was “through,” and told Herman to telephone respondent Gineste and to so advise him. Bright delivered the keys of the plant to Herman, took his personal belongings and left the premises. Appellant Bright’s testimony was in conflict with this version of the events on the morning of August 22, 1950. He testified that Mr. Gineste and Mr. Herman came into his office and that Mr. Gineste produced a paper and demanded that he sign it, saying that it would release him from the lease. He said that he asked who had drawn it up, was advised that an attorney had drafted it, that he signed it, and that there was no further conversation. He stated that his intent in signing the release was solely to cancel the lease and that he did not intend to surrender or abandon the personal property.

Mr. Herman stated that on that morning Bright went into his office, put some papers in his brief case, then called him in and asked him to call Mr. Gineste and tell him to take the place over,- as he was giving it up. He gave him the key to deliver to Gineste, and left the premises immediately. Respondent Gineste arrived about an hour later, and Herman told him what had occurred. Some time later in the day the document referred to as the “cancellation of the lease” was prepared and was signed, according to Herman and Gineste, in the afternoon of August 22 at the home of Mr. Bright’s daughter in Redwood City, with Bright, Herman and Gineste present.

Mr. Herman testified that when they met at the home of appellants’ daughter Gineste asked appellant why he was giving up the plant and he replied that things were going *729 too far in the hole, he could see no way out, and would just as soon not owe any more money on the lease, that he would sign the paper if Gineste would release him from the balance on the lease, and he would in turn give Gineste the equipment and the mortgage. German said he did not see appellant again until he asked him to testify in his behalf, biit that he asked him how he could sue for the equipment when he had given it away in German’s presence.

Appellant Bright testified that he made an oral demand for the personal property about one week after August 22, 1950, but this was denied by Gineste. A written demand therefor was made on September 27, 1950.

The property and equipment was sold to a partnership of which respondent Gineste was a member, for $12,000, but was encumbered to the extent of $7,000 which was paid off by Gineste. He stated that the property and equipment installed were worth $12,000 but if removed would be worth only $5,000.

The trial court found that appellant Samuel Bright surrendered the premises to defendants and vacated and abandoned them and relinquished and abandoned the personal property therein on the morning of August 22, 1950; that the reasonable value of the abandoned property was $12,000 and that it was encumbered to the extent of $6,000.

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Bluebook (online)
284 P.2d 839, 133 Cal. App. 2d 725, 1955 Cal. App. LEXIS 1695, Counsel Stack Legal Research, https://law.counselstack.com/opinion/bright-v-gineste-calctapp-1955.