Ferguson v. McBean

14 L.R.A. 65, 27 P. 518, 91 Cal. 63, 1891 Cal. LEXIS 1049
CourtCalifornia Supreme Court
DecidedSeptember 5, 1891
DocketNo. 13953
StatusPublished
Cited by29 cases

This text of 14 L.R.A. 65 (Ferguson v. McBean) is published on Counsel Stack Legal Research, covering California Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Ferguson v. McBean, 14 L.R.A. 65, 27 P. 518, 91 Cal. 63, 1891 Cal. LEXIS 1049 (Cal. 1891).

Opinion

Beatty, C. J.

In order to a proper understanding of the various questions involved in this appeal, it is necessary to state pretty fully the facts out of which the case arises.

On June 7, 1887, the plaintiff, a married woman living separate from her husband, entered into a written contract with the Colton Land and Water Company, whereby said company agreed to sell and she agreed to purchase certain real estate, situate in San Bernardino County, for the sum of fifty-seven thousand dollars, to be paid, one thousand dollars cash on the delivery of the agreement, one third of the balance in fifteen days, and the remaining two thirds in six and twelve months. It was stipulated that time was of the essence of the contract, and that failure by the vendee to comply with its terms should release the vendor from all obligation to convey, and work a forfeiture of all sums paid. It was further stipulated that at the time of paying the first one third of the purchase-money the vendee should procure from one P. A. Raynor a release and settlement of certain claims of Raynor against the vendor then in litigation.

In pursuance of the contract, and at the date of its delivery, Mrs. Ferguson made the cash payment therein provided of one thousand dollars, and thereafter obtained the consent of the vendor, indorsed in writing on the [67]*67contract, extending the time for making the second payment to and including the twelfth day of July, 1887.

At the time of obtaining the extension, sho assigned the contract to the defendant McBean; that is to say, her written assignment was to McBean alone, but she claims that it was in fact made to the defendants McBean and Bills jointly, such being the understanding and intention of the parties.

In consideration of said assignment, she received from McBean a contract in writing, signed by him alone, in the following terms: —

It is hereby agreed on the part of Alexander McBean, of Oakland, California, to and with Mrs. M. L. Ferguson, that in case the said Alexander McBean shall sell or purchase the interest of the Colton Land and Water Company in and to certain lands, water, and agreements held in common with P. A. Raynor, under and by virtue of an agreement by and between said company and M. L. Ferguson, dated June 7, 1887, or any extension of time granted by said company or which may be given to said McBean, that he will pay to said Mrs. M. L. Ferguson or assigns the sum of three thousand dollars at the time of the consummation of said sale or purchase.
Witness my hand and seal this thirtieth day of June, 1887.
“ [Seal.] Alexander McBean.”

But although executed only by McBean, the plaintiff claims that this was understood to be and was equally the contract of Bills.

Bills is a step-son of McBean, and it clearly appears that they were not only connected very closely in their personal relations, but that they were, at and about this time, engaged in the same kind of speculation in the same locality, and generally conversant each with the doings of the other. But they both deny that Bills had anything to do with the transaction between McBean and the plaintiff.

Shortly before the time for making the second payment, McBean, who had gone to San Francisco, as he [68]*68says, for the purpose of raising money or interesting parties with means to conclude the purchase, telegraphed to Colton announcing his failure, whereupon the plaintiff exerted herself, as she claims, to procure money for Bills, in order that he might make the second payment and prevent a forfeiture of the contract. She claims that she did raise this money, and that Bills used it in making the second payment, and in obtaining a conveyance of the property in pursuance of the contract. The defendants deny this, and claim, on the contrary, that the money procured through the exertions of plaintiff was obtained for P. A. Raynor, who, in conjunction with Bills, subsequently purchased the same property mentioned in the contract, not, however, in pursuance of its terms, but under a separate and independent agreement entered into between them and the owner after the expiration of the time as extended for plaintiff’s second payment.

As to all these matters, the evidence is extremely conflicting, but it is not disputed that on the twelfth day of July, the very last day for making the second payment under plaintiff’s contract, Bills went to the office of the Colton. Land and Water Company, and proposed to purchase the idéntical property described in the contract, and offered to pay on the purchase the same amount stipulated in the contract as a second payment. The company refused to entertain his proposition, unless he produced the release of Raynor’s claims as provided by the contract. He offered to comply with this condition if they would give him until the next day to get the release, to which offer the company assented, and accordingly, on the following day, July 13th, Bills delivered Raynor’s release, paid the sum of nineteen thousand dollars, and received a conveyance of the land to himself. In making the purchase he claimed and received credit for the one thousand dollars originally paid by the plaintiff; that is to say, he was credited on the purchase price of fifty-seven thousand dollars with the full sum of twenty thousand dollars, although he paid but nine[69]*69teen, thousand dollars, and gave his notes for the balance of thirty-seven thousand dollars, secured by mortgage on the land.

After the conclusion of the purchase, and on the same day, he conveyed a half-interest in the land to P. A. Raynor.

The plaintiff thereafter demanded of each of the defendants payment of the sum of three thousand dollars, as provided in the written contract of June 30th, above quoted, and payment being refused, she brings this action to recover that sum, with interest. In her complaint, after setting out her agreement for the purchase of the land, and alleging the payment of one thousand dollars at the date of its delivery, she proceeds as follows: “ That on the thirtieth day of June, A. D. 1887, plaintiff, at the special instance and request of defendants, assigned to them the contract aforesaid, and all her interest therein, the said defendants and each of them promising and agreeing that in case they or either of them should purchase or sell the property of the said Colton Land and Water Company, and make the payments to said company as in said contract specified, and within any extension of time granted in which the same might be made, that they or either of them would pay to plaintiff the sum of three thousand dollars; and at the time of the making of said agreement between plaintiff and defendants, it was agreed that the written evidence thereof should be between plaintiff and defendant McBean, but that defendant A. Bills should be equally interested therein, and that such written agreement should be binding upon both of defendants alike; and in case of either of the defendants purchasing or selling the said property of the said Colton Land and Water Company, they would pay to plaintiff the sum of three thousand dollars; and that pursuant to said understanding, defendant Alexander McBean drew and signed the instrument in writing, of which the following is a copy [here follows a copy of the contract of June 30th, above quoted]; and that the consideration for which said [70]*70assignment was so made to defendants was their agreement to pay said sum of three thousand dollars as aforesaid.”

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Bluebook (online)
14 L.R.A. 65, 27 P. 518, 91 Cal. 63, 1891 Cal. LEXIS 1049, Counsel Stack Legal Research, https://law.counselstack.com/opinion/ferguson-v-mcbean-cal-1891.