Brown v. Schroeder

263 P. 325, 88 Cal. App. 192, 1927 Cal. App. LEXIS 3
CourtCalifornia Court of Appeal
DecidedDecember 31, 1927
DocketDocket No. 6043.
StatusPublished
Cited by14 cases

This text of 263 P. 325 (Brown v. Schroeder) 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
Brown v. Schroeder, 263 P. 325, 88 Cal. App. 192, 1927 Cal. App. LEXIS 3 (Cal. Ct. App. 1927).

Opinion

PARKER, J., pro tem.

-Defendants, in separate appearance, appeal from judgment in favor of plaintiff, decreeing a dissolution of partnership and ordering an accounting and appointing a receiver to wind up the affairs of an alleged copartnership. A brief summary of the pleadings and the facts, as the case is before this court, will be necessary at the outset.

Plaintiff alleged in his complaint that at a time, fixed therein as December 20, 1923, he was the owner of a certain interest in the furniture and equipment of an apartment house known as and called Lotus Apartments in Oakland, together with a leasehold interest and estate in and to the said premises; that on said date plaintiff sold and conveyed to defendant Dorothy Schroeder all of his title and interest in and to said furniture and the lease for a valuable consideration, which plaintiff received in full. *196 That at the same time and as a part of the same transaction the said Dorothy Schroeder executed and delivered to plaintiff a bill of sale, transferring to said plaintiff a one-half interest in the said furniture, furnishings, and leasehold interest. That as a further part of said transaction and on the same date plaintiff Harry Brown and defendant Dorothy Schroeder entered into a partnership agreement for the purpose of operating the apartment house, agreeing to bear equally the expenses thereof and dividing equally between them the profits. This agreement provided that in the event a bona fide offer to purchase the lease, furniture, and goodwill of said copartnership business is made by any person the partner not desiring to sell must buy from the party desiring the sale his one-half interest for one-half the purchase price offered by the intending buyer. The partnership agreement further provides that in case legal action is brought for the breach of the said agreement then the party guilty of such breach shall pay to the other upon demand an attorney’s fee of $250 for prosecuting said action, and that said sum is a reasonable sum for said fee, and that the same shall be a part of the expense in said action.

The complaint further alleges that on March 18, 1924, the said plaintiff Harry Brown and defendant Dorothy Schroeder entered into another agreement supplemental to the said agreement of partnership, by the terms of which agreement of March 18, 1924, all accounts of said partnership business were mutually settled and adjusted between plaintiff Brown and defendant Schroeder. In this last agreement, amongst other things, it was provided that if defendant Dorothy Schroeder shall fail to account to plaintiff Harry Brown on the fifteenth day of every month, or shall fail to fully perform and observe each and every provision of this agreement, and also of the agreement of December 20, 1923, the plaintiff Harry Brown shall be entitled to an immediate dissolution of the partnership existing and to the immediate appointment of a receiver to take full charge of said business and full possession of the premises and all the assets of said business.

Plaintiff then alleges a failure of defendant Schroeder to account and an exclusion of plaintiff from the premises.

*197 Plaintiff next alleges that on or about. April 11, 1924, defendant Schroeder executed a document purporting to sell to defendant Herman Crist all of her right, title, and interest in and to the lease and other personal property, and delivered said document to defendant Crist, and that defendant Crist claims an interest in and to the said lease and personal property by virtue of the bill of sale, but that defendant Crist lias never been in possession thereof. That said attempted sale was without knowledge of plaintiff, and that he, plaintiff, was never informed of the desire of Schroeder to sell nor of the offer of Crist to buy. Plaintiff alleges this purported transfer to defendant Crist was made without consideration and with full knowledge of plaintiff’s interest.

The defendants Dorothy Schroeder and Herman Crist appeared separately.

The answer of defendant Dorothy Schroeder denied that on December 20, 1923, or at any time prior thereto or at any time or at all plaintiff had any interest in the apartment house in question. The said defendant Dorothy Schroeder in her answer sets up the history of her relationship with plaintiff Harry Brown commencing in April, 1922. She avers that at that time.she had consented that Brown act for her in the purchase of the furniture, furnishings, and lease of the apartment house in question; that very shortly thereafter Brown reported to her that he had purchased the place for her, and she went into possession after paying Brown the sum of $4,500, and that she entered the premises in her own right, and that plaintiff Brown at that time never claimed any interest therein; that upon her persistent demands for a bill of sale or other document evidencing her title the plaintiff Brown informed her that he had paid $9,000 for the lease and the furnishings, and that she, Schroeder, was the owner of only a one-half interest. The answer of this defendant then alleges that she learned that plaintiff Brown had paid $5,500 instead of $9,000, and that she thereupon paid to him and he did accept the sum of $1,000 additional to cover his payment in excess of the $4,500 already paid him by this defendant. Defendant Schroeder further alleges that thereafter, to wit, in October, 1923, Brown commenced an action in the superior court *198 of Alameda County against her, wherein he sought a declaring him a partner with her, and also the of a receiver, and that said action was dismissed at request of said Brown on March 18, 1924.

Defendant Schroeder admits that on December 20, 1920, Brown executed and delivered to her the bill of sale pleaded in the complaint. She denies, however, the .execution by her of the bill of sale to Brown for a one-haL§ interest, or the execution by her of the agreement of partnership or the agreement pleaded as supplemental thereto. In this she avers her ignorance of English, written or spoken, and her total unfamiliarity with business proceedings. She alleges that these last-mentioned agreements were represented to her as being connected wholly with the suit pending wherein a receiver had been appointed, and were in effect mere formalities having for their purpose the of the suit and withdrawal of receiver. That at no time were the contents of either agreement explained to her, and she had no opportunity for independent advice or counsel. That the procurement of her signature to the said instruments was fraudulent. That the alleged bill of sale or transfer, purporting to convey from her to Brown a one-half interest in the property and lease, was never executed by her in any manner or at all. She admits the sale of the premises to defendant Herman Crist, and alleges the same to have been in good faith and for a cash of $4,500 and accompanied by delivery, and pleads the recordation of her bill of sale from Brown prior to sale to Crist. She further alleges that an action commenced against her by Brown was on the identical cause of action here pleaded, and that the judgment of dismissal therein entered at the request of plaintiff Brown and by consent of defendants, with stipulation that each party pay his own costs, was a judgment on the merits and a bar to the of the present action.

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Bluebook (online)
263 P. 325, 88 Cal. App. 192, 1927 Cal. App. LEXIS 3, Counsel Stack Legal Research, https://law.counselstack.com/opinion/brown-v-schroeder-calctapp-1927.