Conrad v. Hawk

10 P.2d 534, 122 Cal. App. 649, 1932 Cal. App. LEXIS 1039
CourtCalifornia Court of Appeal
DecidedApril 18, 1932
DocketDocket No. 622.
StatusPublished
Cited by6 cases

This text of 10 P.2d 534 (Conrad v. Hawk) 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
Conrad v. Hawk, 10 P.2d 534, 122 Cal. App. 649, 1932 Cal. App. LEXIS 1039 (Cal. Ct. App. 1932).

Opinion

MARKS, J.

This is an action to quiet title to real estate in Orange County, fee title to which is vested in respondents. Appellants are here on appeal from a judgment in favor of respondents.

Appellants asserted an interest in the property and the right to the possession thereof by virtue of an oil lease executed by respondents as lessors to J. D. Hawk, as lessee, assigned by him to the Bruce Oil Company and by it to appellants as trustees for the Bruce Oil Company and its creditors. The oil lease contained the usual provisions requiring drilling operations be started within a specified time and be prosecuted continuously and diligently until the well reached a specified depth unless oil were found in paying quantities at a lesser depth. It also provided that in case of a default in any conditions of the lease, except as to time in which drilling operations should be started, the lessors should give the lessee notice of such default and unless it were remedied within thirty days, they might proceed to a forfeiture of the lease at their option.

The Bruce Oil Company drilled a well to a depth of over 4,330 feet on the property, when it encountered mechanical difficulties in its drilling operations and exhausted its funds. It expended about $100,000, on the well and owed about the same amount to its creditors. It- executed an assignment of all its assets for the benefit of its creditors to appellants as trustees to act for all the creditors as well as the company. The assignment and declaration of the trust bears the date .of October 13, 1927, but it was probably executed and delivered several months later in 1928. No work was done on the leased property by the creditors’ committee until on or shortly after April 1, 1929. This work was suspended either shortly after the service by respondents of a notice terminating the lease and the trustees ’ interest therein or upon the institution of this action.

*651 On March 27, 1929, respondents caused a notice of default in performance under the lease and requiring the correction thereof within thirty days to be served. A notice of termination of the lease and the forfeiture of the rights of the lessee and the assignees because of a failure to remedy the default specified in the prior notice was served April 30, 1929. This action to quiet title was instituted May 29, 1929.

Appellants rely upon two grounds for a reversal of the judgment; first, that the evidence does not support the findings and judgment; and, second, that there was no proper service of either of the two notices to which we have just referred.

Respondents’ first notice of default was based upon the failure of the lessee and the assignees to prosecute drilling operations diligently and continuously as required in the lease and their final notice of default was based upon the failure to remedy this breach of the lease within thirty days from the service of the first notice. The trial court found that the drilling obligations of the lease had been breached by appellants and that the breach had not been remedied within thirty days from the service of the first notice. This finding is attacked by appellants.

A careful study of the record before us has led to the conclusion that had the trial court found that the breach of the contract had been remedied, by appellants starting and continuing drilling operations on the property within thirty days after the service of the first notice, such a finding would have been supported by ample and sufficient evidence, and perhaps by a preponderance of all the evidence. However, the trial court did not so find and there is evidence in the record supporting the finding made. Respondents produced one witness who testified that he visited the well on the leased property every day between March 26 and April 29, 1929, and saw none of the drilling operations described by the witnesses offered by appellants; that he went to the well for respondents to ascertain what-, if any, work was being done there; that he saw workmen at the well but that their only labors consisted of burning weeds, working on their own private automobiles or sitting down resting; that his visits to the well were at almost every hour of the working day. Another witness for re *652 spondents testified that he visited the well at least every other day during the same period for the purpose of observing the work being done there. He corroborated the testimony of the other witness in every particular. This furnished sufficient evidence to support the questioned finding of the trial court. That we must accept as true a finding supported by competent and material evidence and cannot reverse a judgment because of a conflict in the evidence is too elementary to need the citation of authorities.

Appellants’ contention that there was a defect in the service of the two notices presents a more interesting question. Each notice was in the form of a letter addressed to appellants and others. We are not concerned with the service of the defendants other than the three trustees as they have not appealed from the judgment against them. Each of the notices was inclosed in an envelope, sent by registered mail with return receipt demanded, addressed to appellant, Fred P. Spraul, at his Los Angeles business address. Appellánts maintain that the two notices should have been sent to each one of them and that their delivery to Spraul alone was not sufficient to bind the other trustees or the trust estate.

In considering this question it is necessary for us to determine the nature and extent of the estate of the trustees in the trust property. If it was joint then the service of the notice on one trustee was a sufficient service to bind all of them. (Ellis v. Columbine Creamery Co., 83 Cal. App. 48 [256 Pac. 489, 490].)

The declaration of trust places the title to all of the trust estate in the three trustees. It requires their joint action in trust affairs and provides for the appointment of a new trustee to take the place of one resigning or becoming disqualified. There is nothing in the instrument that would even suggest an intention to vest a several estate in the trustees or any of them.

Section 2268 of the Civil Code provides as follows: “Where there are several co-trustees, all must unite in any act to bind the trust property, unless the declaration of trust otherwise provides.” Section 860 of the same code provides as follows: “Where a power is vested in several persons, all must unite in its execution; but, in case any one *653 or more of them is dead, the power may he executed by the survivor or survivors, unless otherwise prescribed by the terms of the power.” These two sections contain a statutory enactment of the rule existing in many of the older states of the Union that cotrustees take a joint interest in the property of the trust estate that partakes of the nature of a joint tenancy and possesses none of the attributes of a tenancy in common. (26 R. C. L. 1333, see. 196 et seq., and cases cited.) In the ease of La Forge v. Binns, 125 Ill. App. 527, it was said: “Appellants were appointed trustees jointly. By the common law and by an express provision of the statute, the estate of trustees is held in joint tenancy.” (See, also, Wilbur v. Almy, 12 How. 180 [13 L. Ed. 944] ; McGeorge

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Sura Realty Corp. v. Park Realty Trust, 98-5535 (2004)
Superior Court of Rhode Island, 2004
Citicorp Mortgage, Inc. v. Porto
677 A.2d 10 (Connecticut Appellate Court, 1996)
Centerbank v. Aires, No. Cv 950548096s (Oct. 2, 1995)
1995 Conn. Super. Ct. 11590 (Connecticut Superior Court, 1995)
Ge Capital Mortgage Services v. Miller, No. Cv 940056950s (Aug. 23, 1995)
1995 Conn. Super. Ct. 9411 (Connecticut Superior Court, 1995)
Katz v. Town of West Hartford
469 A.2d 410 (Supreme Court of Connecticut, 1983)
Reserve Oil & Gas Co. v. Metzenbaum
191 P.2d 796 (California Court of Appeal, 1948)

Cite This Page — Counsel Stack

Bluebook (online)
10 P.2d 534, 122 Cal. App. 649, 1932 Cal. App. LEXIS 1039, Counsel Stack Legal Research, https://law.counselstack.com/opinion/conrad-v-hawk-calctapp-1932.