Dimond Public Utility District v. Shaffer

185 Cal. App. 2d 482, 8 Cal. Rptr. 372, 1960 Cal. App. LEXIS 1529
CourtCalifornia Court of Appeal
DecidedOctober 20, 1960
DocketCiv. No. 18835
StatusPublished

This text of 185 Cal. App. 2d 482 (Dimond Public Utility District v. Shaffer) 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
Dimond Public Utility District v. Shaffer, 185 Cal. App. 2d 482, 8 Cal. Rptr. 372, 1960 Cal. App. LEXIS 1529 (Cal. Ct. App. 1960).

Opinion

BRAY, P. J.

Defendants appeal from a judgment in favor of plaintiff on its complaint and on defendants’ cross-complaint.

Questions Presented

1. Which Bayshore Voters League was in existence at the time of the deed to plaintiff?

2. Is plaintiff estopped to claim title against defendants ?

3. Does the evidence support the finding that the deed of trust was void and do the findings support the judgment ?

Record

Plaintiff brought this action to quiet title to certain real property and the frame building thereon in Bayshore, San Mateo County. Defendants cross-complained, asking that the title to said property be quieted in Bayshore Voters League. The court found plaintiff to be the owner of said property and quieted plaintiff’s title thereto.

In 1932 or 1933 a group of public-spirited citizens opposed to gambling in the area organized the “Bayshore Voters League,” an unincorporated association. One of the organizers was defendant Claude Higgins. To provide a meeting place, the group raised some money and purchased the land. Title for the group was taken in the names of two of the [484]*484group, John P. Lawson and Rhoda Lawson, his wife. A building was erected on the property through donations of labor and materials. In 1933 the Lawsons deeded the property to “Bayshore Voters League Hall Corporation,” a corporation. November 15, 1939, the corporation deeded the property to the unincorporated association, Bayshore Voters League. Lawson was president from the beginning until 1950. In 1936 Claude Higgins was expelled from the organization but returned after Lawson was no longer president. In 1951 the officers were James Throne, president; Bert Ford, vice president and chairman of the executive committee, and certain directors. Apparently there was no election of officers thereafter, the officers remaining the same, except that Throne and one of the directors, Parker, moved out of the area.

After 1951 Vice President Ford apparently sent out calls for meetings and phoned Higgins to attend, but no meetings were held until 1956, as Higgins had locked the building and refused the league use of the building. Higgins maintained the building and paid the utilities. In 1955 Higgins, without notice to the officers of the league, was appointed by court order trustee of the property. His trusteeship was terminated January 23, 1956. January 17, Higgins held a reorganization meeting, there being present five persons, including Higgins and his brother Lonnie. Claude was made president and an executive board elected. January 23 this group, plus Anna Higgins, Claude’s wife, who was added to the executive board, purported to authorize the execution of a deed of trust to Higgins and his wife on the property to secure $2,400 which Higgins claimed to have advanced for taxes, repairs, etc. On May 29 Ruth Shaffer, Claude’s daughter, was made secretary-treasurer. The only persons in this group who were members of the original league were Claude and Lonnie Higgins. Neither Vice President Bert Ford nor any of the other members of the original league were notified of the so-called reorganization meeting. On March 5, the Higgins group adopted “Bayshore Voters League Constitution and By-Laws. ’ ’ August 16, a meeting was called of the league of which Ford was vice president. At the meeting presided over by Vice President Ford there were present some 30 to 40 people. Resolutions were adopted authorizing the execution of a deed transferring the property to plaintiff. This deed thereafter was executed and delivered to plaintiff.

The court found in effect that the true Bayshore Voters League and the one which owned the property prior to its [485]*485conveyance to plaintiff was the one of which Ford was vice president and that Higgins never became president thereof, and that the Higgins’ Bayshore Voters League never at any time had any interest in the property; that the deed of trust purported to be executed by the Higgins organization is void, but that Higgins is entitled to “retain the funds in his hands and payments heretofore made to him as total consideration for work and labor performed and moneys advanced, but is entitled to no lien on the premises for said work and labor or monies advanced.” It appeared that Higgins had collected certain rentals and had appropriated certain bonds of the league. No accounting was made to show how much, if any, Higgins’ expenditures for the benefit of the league, exceeded his collections.

1. Which was the true Bayshore Voters League?

This is simply a factual ease in which there is not much conflict in the testimony, although in some respects the testimony is vague as to the details of what happened over the years. The court resolved what conflict there was in favor of plaintiff and its findings are well supported by the evidence.

It is clear that this is a situation in which Higgins attempted to take over the league to the exclusion of its members. While apparently the league lay dormant from 1951 until 1956, such fact did not cause its members to lose their membership nor authorize Higgins to conduct a so-called reorganization meeting without notifying the members. The court was correct in holding that a meeting of five persons, only two of whom were members of the original association, could not constitute a reorganization of the league, nor could the property of the league be thereby transferred to Higgins’ league. As the latter league had no interest in the former’s property, the purported encumbrance thereof carried no title and was void.

This brings us to the questions raised concerning the transfer by the league which owned it, of the property to plaintiff. There is a conflict in the evidence regarding the notice given of the meeting of August 16, 1956, of the original Bayshore Voters League. Although Higgins denied receiving notice of the meeting, he was present but did not participate in the proceedings, nor did he object to any portion of the proceedings. The notice of the meeting was signed by five of the members of the original league and posted in [486]*486the meeting hall. The bylaws of the original league were not introduced in evidence, but there was testimony that they required notice of a special meeting to be signed by five members. The bylaws of the Higgins league are in evidence and plaintiff contends they were not followed. However, they have no application to the original league.

Plaintiff produced the resolution of the league and the deed. They were admitted without objection. They were regular on their faces. Section 1963, subdivision 20, Code of Civil Procedure, provides a presumption “That the ordinary course of business has been followed.” Defendants made no effort to overcome this presumption, and failed to show any irregularity in their issue, depending for irregularity upon their contentions (1) that the Higgins league was the true league and owner of the property, and that the resolution was not adopted by that league nor the deed executed by it, and (2) that plaintiff was a tenant of the Higgins league and therefore could not attack its title. As heretofore shown, there was no basis for the first contention.

2. Plaintiff not estopped to assert title.

As to the second contention, it appeared that on March 10, 1956, a lease of the premises was entered into between Bay-shore Voters League as lessor (Higgins signing as president), and plaintiff as lessee.

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Cite This Page — Counsel Stack

Bluebook (online)
185 Cal. App. 2d 482, 8 Cal. Rptr. 372, 1960 Cal. App. LEXIS 1529, Counsel Stack Legal Research, https://law.counselstack.com/opinion/dimond-public-utility-district-v-shaffer-calctapp-1960.