Ganiats Construction, Inc. v. Hesse

180 Cal. App. 2d 377, 4 Cal. Rptr. 706, 1960 Cal. App. LEXIS 2352
CourtCalifornia Court of Appeal
DecidedApril 27, 1960
DocketCiv. 18587
StatusPublished
Cited by9 cases

This text of 180 Cal. App. 2d 377 (Ganiats Construction, Inc. v. Hesse) 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
Ganiats Construction, Inc. v. Hesse, 180 Cal. App. 2d 377, 4 Cal. Rptr. 706, 1960 Cal. App. LEXIS 2352 (Cal. Ct. App. 1960).

Opinion

TOBRINER, J.

This appeal 1 originates in appellant’s option to purchase real property, its consolidated suits for a declaratory judgment and specific performance, and a decree adverse to appellant. Appellant directs its primary attack against the court’s conclusion that the option agreement violates the statute of frauds. Appellant secondarily challenges the trial judge’s sustention of various equitable defenses to specific performance, including an alleged harsh contract, unclean hands, and inadequate consideration, as well as his denial of damages to appellant. Since we believe that the trial court’s judgment should be affirmed because the statute of frauds invalidated the option, we need not discuss the issues relating to the various equitable defenses to specific performance.

The negotiations of the parties in this case ultimately resulted in the disputed options extended by respondent to appellant. In the latter part of 1950 agents of appellant, a *380 corporation engaged in the development and sale of subdivision tracts, sought to purchase respondent’s farm of approximately 230 acres for $1,200 per acre. Respondent refused this offer. Negotiations between the parties finally culminated in respondent’s granting appellant an option for which appellant paid “no consideration whatsoever” and which “instrument was never recorded.” After preparation by respondent’s then attorney, Mr. Haley, and discussion by the parties in his office, respondent signed the option agreement on January 11, 1951. The agreement describes two parcels of land by metes and bounds and then provides for certain options which in the aggregate comprise all of the described land. 2

On July 3, 1951, although, at this date, appellant’s option had expired, respondent conveyed to appellant 10 acres in an irregular shape, which fronted on Hesperian Boulevard. On August 29, 1952, in consideration of 35 monthly payments of $191.25 by appellant, respondent extended until 12 noon of August 1, 1955, the time within which appellant could exercise the option to the “next contiguous thirty (30) acres.” Contingent upon the exercise of appellant’s option to the first 30 acres and the completion of all the required monthly payments, the agreement extended respectively the time for purchasing the next contiguous 70 acres, and, thereafter, the next contiguous 120 acres, until 12 noon of August 1, 1956, and 12 noon of August 1, 1957. Although by October of 1954 respondent had decided not to perform under this modified *381 agreement of August 29, 1952, he continued to accept appellant’s monthly payments until June of 1955.

On April 19, 1955, appellant notified respondent that it was exercising its option to purchase the 30-acre tract, and, within the time required by the agreement, appellant deposited the purchase price in escrow. Appellant thereafter, on April 22, 1955, furnished respondent with two different descriptions, both purportedly embracing the 30 acres, and sought to obtain respondent’s consent to either description. Respondent refused to execute a deed to the 30 acres.

On April 20, 1955, appellant filed an action to quiet title to its claimed option rights; on April 28, 1955, it brought a separate suit for specific performance to compel respondent to convey 30 acres or for damages in the alternative. Later appellant amended this complaint, incorporating a somewhat different description of the property than those given respondent on April 22, still only seeking specific performance of the 30-acre option. On September 14, 1955, appellant amended its quiet title complaint to obtain a declaration of its rights in all of respondent’s property described in the original and supplementary option agreements. These actions were consolidated for trial. On January 13, 1956, appellant notified respondent that it was exercising its option to all of respondent’s property and deposited $240,000 in escrow to cover the transaction. Respondent rejected appellant’s claim and the case proceeded to trial on September 6, 1956.

Although appellant presented its case on the theory that the option agreements were unambiguous, it introduced, as plaintiff in the consolidated actions, the testimony of Mr. Riffe, a registered civil engineer, who, over respondent’s objection, described the “next contiguous 30 acres” to be contained within a metes and bounds description identical to those set out in the appellant’s amended complaint. In support of this description, Riffe said that as a civil engineer he knew of no other lines which could encompass the next contiguous 30 acres; that “next contiguous” in relation to preparing descriptions had a “particular significance to an engineer or surveyor. ’ ’

Subsequently, appellant’s attorney, in offering an alternate description of the 30-acre parcel, which differed from the other description in that the eastern boundary paralleled the western boundary, stated, “Our theory of the case is this, Tour Honor; that literally speaking ‘next contiguous’ is as *382 stated by the witness as shown here thus far. However, under the eases that I have cited ... if the Court does not feel that that is the proper description, we take the position that . . . the Court fixes the line parallel to the westerly line, and I’m offering that as an alternative theory. ...” In addition to these two descriptions of the 30-acre tract, appellant introduced its attorney’s letter to Hesse’s attorney, in which appellant, seeking to exercise its option, referred to two descriptions, one of which was different than either of the above two descriptions. Thus, appellant presented to the trial court three different descriptions of the 30-acre parcel.

Respondent’s witness, Mr. Mancini, a registered civil engineer, stated that the words “next contiguous” do not have any engineering significance whatsoever; that these words would be of no assistance in ascertaining the metes and bounds of the next contiguous 30 acres and that with this description he could lay out “any number of parcels containing that acreage, an infinite number of parcels.”

Another civil engineer, Mr. Mattson, a witness for respondent, testified that from an engineering standpoint a request to lay out the “next contiguous thirty acres” to the 10 previously conveyed to appellant would be insufficient to enable him to comply with the request.

Mr. Haley who, as we have noted, was respondent’s attorney in the preparation of the option, stated on behalf of respondent that at the time of the signing of the supplemental option agreement he told Alexander Ganiats that “it would be far more satisfactory that a more positive metes and bounds description be made of the successive parcels to be taken under the Option.” To this Ganiats replied that “in the development of the piece of property of this nature ... it would . . . ultimately be taken as the successive options were exercised because the actual boundaries would be dependent upon the final map of the several units they proposed to subdivide.” Haley also stated, over appellant’s parol evidence objection, that during the negotiation of the lease, which respondent granted appellant for a corporation yard, Ganiats told respondent, “You know, Clarence, if we wanted to, we could take a 10-acre strip clear through from the front to the back, a very narrow strip of land.

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Bluebook (online)
180 Cal. App. 2d 377, 4 Cal. Rptr. 706, 1960 Cal. App. LEXIS 2352, Counsel Stack Legal Research, https://law.counselstack.com/opinion/ganiats-construction-inc-v-hesse-calctapp-1960.