Capital National Bank v. Smith

144 P.2d 665, 62 Cal. App. 2d 328, 1944 Cal. App. LEXIS 829
CourtCalifornia Court of Appeal
DecidedJanuary 14, 1944
DocketCiv. 6911
StatusPublished
Cited by53 cases

This text of 144 P.2d 665 (Capital National Bank v. Smith) 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
Capital National Bank v. Smith, 144 P.2d 665, 62 Cal. App. 2d 328, 1944 Cal. App. LEXIS 829 (Cal. Ct. App. 1944).

Opinion

THOMPSON, J.

Certain parties have appealed on various grounds from a judgment which was rendered against them in the above entitled actions which were consolidated for the purpose of trial. The suits involve title to a quicksilver mine and distribution of the proceeds from the sale thereof. The mine is situated in Lake County and was formerly owned by Alpha Quicksilver Company.

The first action was commenced in 1938 by Sam Ginsberg and Sacramento Pipe Works against Theo. Smith et al. It seeks to partition the quicksilver mine or to sell it ^.nd apportion the proceeds thereof, and also asks for an accounting and distribution of the rents, issues and proceeds to the parties entitled thereto. After the commencement of that suit Mr. Ginsberg died and Capital National Bank of Sacramento, as executor of the last will of said deceased, and other parties, were substituted as plaintiffs.

The second action was brought in November, 1940, by International Metals Development Company, the purchaser of the mine, pursuant to contract, against the plaintiffs in the first suit and numerous other parties claiming interests in the mine or in the proceeds of sale thereof. It seeks declaratory relief under section 1060 of the Code of Civil Procedure, and asks the court to construe two contracts for the purchase of the mine and to determine the interests of the various parties involved therein.

The' first contract was executed September 27, 1936, between Theo. Smith, as the holder of title to the mining property in trust for some forty claimants who contributed various sums of money for the maintenance and operation of the mine, and Barbara de Bles, the first conditional contract purchaser thereof. The consideration named in that con *333 tract was $100,000, payable in specified installments. It is alleged that after payments of installments aggregating about $14,000, Barbara de Bles defaulted in the covenants of her. contract, which,, on that account, was therefore terminated by Mr. Smith.

Theo. Smith, as trustee, then executed a similar contract of sale of the mining property to International Metals Development Company on June 20, 1940, for the sum of $100,000, payable in installments. It is alleged that all of said installments were paid in accordance with the contract and that the plaintiff has fully performed the covenants of its agreement. All installments falling due after the commencement of that action have been paid into court subject to its order and judgment. The complaint asserts that a controversy exists between the parties to said contracts regarding the validity of each of them, the alleged termination of the Smith-de Bles agreement for breach of covenants, and the respective shares of the proceeds of sale to which the numerous claimants are entitled. The court is asked to determine those issues. All interested defendants appeared by counsel, in several separate groups, and answered the material allegations of both complaints. Barbara de Bles appeared separately and filed her answer and cross-complaint in both actions, setting forth the execution and validity of her contract to purchase the mine, her alleged title thereto and a claim to all payments made by International Metals Development Company. She asks for judgment accordingly.

During the trial, Barbara de Bles, through her attorney, moved for a continuance of the trial on the ground of her illness, which motion was denied. Her attorney remained and participated in the trial, but offered no evidence in support of her contentions.

After submission of the cause and adoption of findings by the court the plaintiffs in the partition suit moved the court to be relieved from responsibility under a stipulation of facts which they had signed and filed in the consolidated cases, on the ground that they had been misled and substantially injured by the court’s failure to adopt said stipulation of facts in toto and by failure to render a judgment in accordance therewith. That motion was denied. Plaintiffs’ motion for new trial was also denied.

At the trial, which occurred in May, 1941, oral and documentary evidence was adduced by the respective parties, *334 except that no evidence was offered in behalf of Barbara de Bles. In addition to the oral and documentary evidence, a twenty-five page typewritten stipulation of facts and an agreement for judgment, signed by the attorneys representing all interested parties except International Metals Development Company and Barbara de Bles, was filed. It recites with elaborate details the various transactions with relation to the issues involved in the consolidated actions, and concedes the validity of the contract of sale from Theo. Smith, as trustee, to International Metals Development Company, and the fulfillment of its terms and conditions. It also concedes the termination of the Smith-de Bles contract for breach of covenants, but asserts that Barbara de Bles claims that her contract is in full force and that she is entitled to its fulfillment and to the proceeds derived from the subsequent contract. The stipulation definitely fixes, determines and authorizes payments to forty or more named claimants and attorneys of specified sums of money advanced for operating and maintaining the mine in the aggregate amount of $17,118.81, together with interest thereon from the respective dates of payments. It also agrees to specified amounts of other expenses paid by named individuals incident to the operation of the mine in a sum aggregating several thousands of dollars and to the value of services rendered by ten different attorneys in this litigation and incident to said mining enterprise, in the total sum of $11,843, all of which amounts are authorized to be paid. That document provides for the rendering of judgment accordingly, in the following language:

“It is stipulated and agreed by and between those parties in the foregoing entitled actions who are signatory hereto, as follows, towit:
“That the Findings of Fact and the Decree of the Court shall be in accordance with the terms hereof.”

On the theory that the stipulation of facts is not binding for the reason that it was neither signed nor agreed to by all interested parties, the court adopted detailed findings on all material issues raised by the pleadings in the consolidated eases. The court specifically found that Theo. Smith held title to the mining property as trustee for forty named claimants who duly authorized him to sell the mine and account to them for the proceeds thereof; that Barbara de Bles' agreement to purchase the mine had been terminated for breach of the covenants of her contract, and that she had no *335 further interest therein; that the agreement for sale of the mine to International Metals Development Company was valid and binding, and that upon fulfillment of its contract that company will be entitled to a good and sufficient deed of conveyance thereto; that specified installments had been paid by the company; that forty named claimants were entitled to the sums of money contributed by them in the amounts set opposite their respective names, aggregating $17,118.81, and that the balance of the purchase price of the mine shall be paid to Theo. Smith as trustee for the parties entitled thereto. Judgment was rendered accordingly.

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Bluebook (online)
144 P.2d 665, 62 Cal. App. 2d 328, 1944 Cal. App. LEXIS 829, Counsel Stack Legal Research, https://law.counselstack.com/opinion/capital-national-bank-v-smith-calctapp-1944.