Eistrat v. JC Wattenbarger & Sons

181 Cal. App. 2d 57, 5 Cal. Rptr. 77, 1960 Cal. App. LEXIS 1960
CourtCalifornia Court of Appeal
DecidedMay 18, 1960
DocketCiv. 24044; Civ. 24045
StatusPublished
Cited by4 cases

This text of 181 Cal. App. 2d 57 (Eistrat v. JC Wattenbarger & Sons) 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
Eistrat v. JC Wattenbarger & Sons, 181 Cal. App. 2d 57, 5 Cal. Rptr. 77, 1960 Cal. App. LEXIS 1960 (Cal. Ct. App. 1960).

Opinion

VALLÉE, J.

Appeals from separate judgments for defendants in two actions for damages for the alleged conversion of lumber from plaintiff’s property in Tulare County. The actions were consolidated for trial and for decision here.

On August 2,1948, plaintiff entered into an agreement with Jones Lumber and Mill Company, a copartnership consisting of defendant Tom G. Jones, Danny R. Jones and Clovis Jones, under the terms of which the partnership agreed to cut and pay a specified price prior to October 1, 1950, for all merchantable timber from about 160 acres of timberland owned by plaintiff and his wife. The partnership entered upon the property about August 6, 1948, moved a small mill thereon, and proceeded to cut lumber.

On October 10, 1948, plaintiff served the partnership with a written notice of rescission, claiming default in the terms of the contract.

On June 21, 1949, the partnership assigned all of its assets to defendant Tom G. Jones. On June 24, 1949, Jones filed a petition in bankruptcy in the United States District Court under chapter XI of the Bankruptcy Act. On September 29, 1949, plaintiff, joined by his wife, filed a petition in the bankruptcy proceeding to reclaim the property here involved. About October 30, 1949, Jones was adjudged bankrupt.

In the course of the bankruptcy proceedings the receiver sold lumber cut by Jones to defendant Wattenbarger for $425.96. Later the trustee filed a petition requesting that defendant Schultheis be directed to turn over 10,683 board feet of lumber to the bankrupt’s estate. Notice of hearing was personally served on Schultheis and he was represented by counsel at a hearing on May 5, 1950. The referee found: at the time of the first meeting of creditors and appointment of the receiver (September 9, 1949), Schultheis had 10,683 board feet of lumber belonging to the estate in his possession or under his control; after notice of demand to turn over the lumber to the receiver he sold it; the value of the lumber was $640. The order of the referee, issued May 31, 1950, directed Schultheis to pay $640 to the trustee. No appeal was taken.

On September 26, 1951, the United States District Court made an order granting plaintiff’s petition to reclaim the property. The court found there had been a continuing viola *60 tion since the first week of August, 1948, successively by the partnership, defendant Jones, the receiver and the trustee, of a condition in the contract of August 2, 1948, which required compliance with California state laws and California and United States Forestry Service rules and regulations pertaining to logging. The court further found that any default in performance of other terms and conditions of the contract had been waived by plaintiff and his wife by acceptance of payments for lumber cut and logged with knowledge of the delinquency of the partnership and the bankrupt in the performance of the contract. The court held that all rights of the partnership were terminated on October 10, 1948, by the rescission of plaintiff and his wife; that neither the partnership, J ones, the receiver, nor the trustee had any right, title, or interest in, to, or against plaintiff’s real property or any of the logs, lumber, or timber located thereon or removed therefrom. The court ordered the trustee to deliver to plaintiff the real property and all logs, lumber, and timber located thereon, the proceeds from the sale of portions of the lumber, and any claims the trustee had against others arising from transfer of logs or lumber felled on the real property, “without prejudice to such right or rights as the petitioners may have against such person or persons or any of them.” Thereafter plaintiff made demands on defendants Schultheis and Wattenbarger for the return of the lumber. The demands were refused and the present actions followed.

These actions are two of several brought by plaintiff against various parties on the basis of claims they converted portions of the lumber cut from the property. (See Eistrat v. Brush Industrial Lumber Co., 124 Cal.App.2d 42 [268 P.2d 181] ; Eistrat v. Western Hardwood Lumber Co., 164 Cal.App.2d 374 [330 P.2d 629]; Eistrat v. Cehada, 50 Cal.2d 289 [324 P.2d 881].)

In the present actions the court found: sometime in the latter part of August or in early September, 1949, defendant Jones cut timber and logs from the property which amounted to 10,649 board feet of lumber when milled; he shipped the lumber to Schultheis, doing business under the firm name of Sunset Cabinet Shop; the lumber was “substantially mismilled” and unsuitable for the purposes intended by Schultheis and he refused to accept it; the lumber was dumped at a lumber yard nearby where it remained for three to six weeks, suffering further deterioration; on September 19, 1949, the receiver in bankruptcy sold it for $425.96 to defendant Wat *61 tenbarger who took possession of it; the $425.96 was paid by the receiver to plaintiff: $425.96 equalled or exceeded the reasonable market value of the timber and logs from which the lumber was derived at the time the timber and logs were cut. The court also found that about July, 1948, Schultheis had purchased from Jones and paid for certain lumber, which lumber was not the property of plaintiff. The judgments were that plaintiff take nothing in either action.

A certified copy of the order of the referee which directed that Schultheis pay $640 to the bankrupt’s estate for lumber which he had obtained was received in evidence. Plaintiff claims the order adjudicated the identical issue at bar as to whether Schultheis took and kept the lumber. He contends it was error for the court to allow Schultheis to testify he did not accept the lumber, thus permitting a collateral attack on the order of the bankruptcy court.

The doctrine of res judicata is that an existing final judgment on the merits of a cause rendered by a court of competent jurisdiction is, in all subsequent actions, conclusive of the rights of the parties thereto and of their privies on all material issues which were or might have been determined. (French v. Rishell, 40 Cal.2d 477, 479 [254 P.2d 26]; Dillard v. McKnight, 34 Cal.2d 209, 213 [209 P.2d 387, 11 A.L.R.2d 835] ; Bliss v. Security-First Nat. Bank, 81 Cal.App.2d 50, 58 [183 P.2d 312].) The application of the principle in a given ease depends upon affirmative answers to these questions: Was the issue decided in the prior adjudication identical with the one presented in the action in question? Was there a final judgment on the merits? Was the party against whom the plea is asserted a party or in privity with a party to the prior adjudication? (Bernhard v. Bank of America,

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Bluebook (online)
181 Cal. App. 2d 57, 5 Cal. Rptr. 77, 1960 Cal. App. LEXIS 1960, Counsel Stack Legal Research, https://law.counselstack.com/opinion/eistrat-v-jc-wattenbarger-sons-calctapp-1960.