Frank Taylor, Inc. v. Bomalick

271 P.2d 188, 125 Cal. App. 2d 753
CourtCalifornia Court of Appeal
DecidedJune 4, 1954
DocketCiv. No. 19984
StatusPublished
Cited by2 cases

This text of 271 P.2d 188 (Frank Taylor, Inc. v. Bomalick) 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
Frank Taylor, Inc. v. Bomalick, 271 P.2d 188, 125 Cal. App. 2d 753 (Cal. Ct. App. 1954).

Opinion

FOX, J.

In 1949 plaintiff leased certain business property, for the purpose of conducting an automobile business, from the Bomalicks for a five-year term. The lease contained the following provision: “2. Said Leasee shall pay as rent for said premises the sum of Seventy-Five Thousand Dollars ($75,000.00), as follows:

‘1 $6,250.00 upon execution of this lease; $1,250.00 on April 1, 1949, and $1,250.00 on the 1st day of each and every month thereafter to and including October 1, 1953; and in the event this lease is in effect and the lessee is in possession of the demised premises, and not in default in the performance of any of the agreements herein contained on October 31, 1953, then Lessee shall not be required to pay any rent for the months commencing November 1, 1953, and ending February 28,1954.”

After plaintiff had been in possession for approximately a year the original lease was superseded by two leases. They were executed at the request of and for the convenience of the Bomalicks, so that they could arrange a loan on one of the parcels. Under the substituted leases, the property originally demised was divided into two parts and the rent referred to in the original lease was segregated between the two. No change was made in the total rent to be paid or in the dates of the substituted leases. The period and terms of the substituted leases were the same as those in the original lease, except that because of the segregation of the rent between the two leases, the amount initially paid was divided so that one substituted lease recited that the tenant had paid $6,000 against a monthly rental of $1,200, and the other recited that the tenant had paid $250 against a monthly rental of $50.

On September 27, 1951, plaintiff entered into an agreement with defendant Sanchez for the sale of its automobile business conducted on the demised premises. This agreement provides: that the sale was contingent upon the assignment of all the business’ leases to Sanchez with the approval of the landlords; that Sanchez would, within a specified time, assume the obligations of plaintiff under the leases; that plaintiff would be relieved of all liability under the leases after October 1, 1951; and that upon the completion of these matters Sanchez would pay plaintiff the amount of any prepaid rent theretofore paid by plaintiff to its lessors.

An escrow was opened to facilitate the* sale. Sanchez undertook to obtain the consent of the several lessors and [756]*756their release of plaintiff’s obligations. All of the consents and releases were obtained except those to come from the Bomalicks. Sanchez reported Mr. Bomalick would not agree to release plaintiff, and that he would not enter into a lease such as those plaintiff had signed with the Bomalicks. As an alternative, Sanchez demanded a termination of the leases, and that plaintiff execute an agreement terminating them. Mr. Taylor, president of plaintiff, pointed out to Sanchez that a.termination of the leases was contrary to their agreement to buy and sell and that he expected to receive the $5,000 prepaid rent. Sanchez then said to Taylor: “I will see you get your $5,000.00, and you don’t have to worry about it.” Thereupon the termination agreement (bearing date of September 30, 1951) was signed by Bomalick and Taylor.

On October 22d the escrow officer pointed out to Taylor and Sanphez that the assignment of the Bomalick leases was required under this agreement. Sanchez was willing to pay the $5,000 to plaintiff but only if he could be protected against paying it again to the Bomalicks under his new lease with them. Whereupon, pursuant to Sanchez’s assurance that plaintiff would get the $5,000 from either Sanchez or Bomalick, Taylor signed a guaranty that Sanchez would “not be required to pay” plaintiff and Bomalick “rent for the same period.” The escrow instructions were then modified to provide that the matter of prepaid rent would be settled out of escrow. Although the escrow was closed a few days later, Sanchez failed to pay plaintiff the $5,000.

■Sanchez and Bomalick later executed a new lease. It did not provide any credit for prepaid rent. Bomalick, however, gave Sanchez an agreement on the side to the effect that if the court required Sanchez to pay the $5,000 to plaintiff, Bo.malick would give him credit on the lease.

- The trial court gave plaintiff judgment against Sanchez for $5,000 and further decreed that upon the satisfaction of that judgment, Bomalick must credit Sanchez with $5,000 as prepaid rent on the current lease. The Bomalicks and Sanchez appeal.

Defendants argue that “The judgment as well as the findings of fact and conclusions of law are not supported by the evidence and are contrary to law.” These contentions are not well founded.

The court found that $5,000 out of the initial check of. $6,250 which plaintiff gave Bomalick when the original lease was .entered into was a prepayment of rent. Defendants [757]*757challenge the sufficiency of the evidence to support this finding. From the lease it appears that the rental is $1,250 per month; that if the lease is in effect and the lessee in possession and not in default on October 31, 1953, then the lessee is not required to pay any rent for November and December, 1953, and for January and February, 1954, when the lease expired. From this arises a reasonable inference in support of the finding, that the $5,000 was paid as rental for these four months.

Furthermore, Taylor testified that Bomalick explained during the course of the negotiations that the $6,250 was for “the first and the last four months of the lease.” Mr. Woodman, general manager and secretary-treasurer of plaintiff, who was present when the terms of the lease were agreed upon, testified in effect that the rental was $1,250 a month, and that the lessee was required to pay the rental for the first month and the last four months of the term of the lease. Finally, plaintiff produced a cancelled check payable to and endorsed by Bomalick, dated March 15, 1949, in the sum of $6,250. The check included the voucher notation:

“Last 4 mo. lease......................$5,000.00
March ’49 ........................... 1,250.00
6,250.00”

There is, therefore, abundant support, both from the terms of the original lease and the testimony of Taylor and Woodman and the check voucher, for the finding that the $5,000 was paid as prepaid rent when the lease was executed.

Defendants point out that the intention of the parties to a written agreement is to be ascertained from the writing alone, if possible. They then assert “it does not appear that the intention of the parties could not be ascertained from the writing itself” in the instant ease. Hence, they argue, it was not proper to admit the parol evidence to which we have referred. It is true the lease is quite clear. It may well be that parol evidence was not necessary to determine its meaning. but that did not make it prejudicial.

Defendants assert that the notation on the cancelled check is without significance. They point out it was in the handwriting of Mr. Powers (who was plaintiff’s office manager) and that Mr. Taylor did not recall having directed Powers to place the notation thereon. They argue from this fact that it does not appear that Powers was authorized by plaintiff [758]*758to act for it in placing the notation on the check.

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Cite This Page — Counsel Stack

Bluebook (online)
271 P.2d 188, 125 Cal. App. 2d 753, Counsel Stack Legal Research, https://law.counselstack.com/opinion/frank-taylor-inc-v-bomalick-calctapp-1954.