Haidopoulos v. Woollett

42 P.2d 1056, 5 Cal. App. 2d 229, 1935 Cal. App. LEXIS 1048
CourtCalifornia Court of Appeal
DecidedMarch 13, 1935
DocketCiv. No. 5267
StatusPublished
Cited by2 cases

This text of 42 P.2d 1056 (Haidopoulos v. Woollett) 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
Haidopoulos v. Woollett, 42 P.2d 1056, 5 Cal. App. 2d 229, 1935 Cal. App. LEXIS 1048 (Cal. Ct. App. 1935).

Opinion

WOODWARD, J., pro tem.

Specific performance of an agreement for the exchange of real property was denied plaintiffs and they appeal from the judgment, which was in favor of the defendants on all the issues joined.

Omitting unnecessary minutiae, the facts of the controversy may be epitomized as follows: On March 19, 1932, the parties executed a written contract under the terms of which plaintiffs ’ ten-acre citrus grove, situated near Yuma, Arizona, was to be exchanged for defendants’ ten-unit bungalow, situated in Los Angeles County, together with $1500 in cash. The Arizona property was to be conveyed free of encumbrance, with the exception of a lien for taxes, while the bungalow court and furnishings were to be accepted subject to a secured indebtedness of $10,500. Immediately upon the execution of the agreement it seems that each of the parties gave the other possession, and they then proceeded to open a thirty-day escrow with the Citizens National Trust & Savings Bank of Los Angeles. On April 12, 1932, by mutual consent, the escrow instructions originally filed were [231]*231amended, a defect in plaintiffs’ title having been discovered and an adjustment of the matter determined upon. This amendment provided that plaintiffs should have an extension of six months in which to clear the title from a cloud cast thereon by the recordation of a previously executed agreement of exchange between “Pete” Haidopoulos and Orin A. Pearce. Shortly thereafter another amendment was made, the effect of which was that defendants, in lieu of the cash payment of $1500, would execute a promissory note to plaintiffs in the sum of $481.10 and accept a conveyance to the citrus grove subject to a mortgaged indebtedness of $1500. The original agreement having been thus modified, it seems that the parties were at last ready to consummate the transaction, each having deposited all necessary papers with the bank; but thereafter, on April 29, 1932, the Security Title Company of Yuma, Arizona, advised the escrowee of eight additional defects in plaintiffs’ title, chief of which was a reservation by a previous grantor, whereby plaintiffs’ purported ten acres were diminished by .38 acre. Defendants, after being informed of this development, waited until May 23, 1932, at which time they served plaintiffs with a notice of rescission, setting forth the various defects of title as grounds therefor. Plaintiffs thereupon commenced the present action for specific performance. The answer sets forth a number of defenses, including failure of plaintiffs to comply with the terms of the agreement within the time specified, or within a reasonable time thereafter; and fraud on the part of plaintiffs and their agent in obtaining defendants ’ consent to said agreement and escrow instructions.

The court made the following finding: “That it is not true that said contract of exchange, or the terms or conditions thereof were, or are, in all respects just, fair and equitable between the parties, and in that connection the court finds that the said contract is not just and reasonable as to the defendants herein, and that they were not to receive an adequate consideration by said exchange agreement. The court further finds that the defendants’ property, as set forth and described in said exchange agreement, being the real property at Santa Monica, together with the furniture and furnishings therein was, on March 19, 1932, of the value of $16,859.57; that said property was subject to a first [232]*232mortgage of $10,500.00, and that defendants had a net equity in said property of the value of $6,359.57. That the plaintiffs’ property at Yuma, Arizona, on said 19th day of March, 1932, was of the value of $2,000.00, and that according to said exchange agreement the defendants were trading their property at Santa Monica, with an equity of $6,359.57 and $1,500.00 cash, for the plaintiffs’ property with only a value of $2,000.00, and that thereby the consideration as to the defendants was not adequate, and said contract was not just and reasonable.” The other findings adopted by the court sustained each of the several defenses.

The contract was silent as to the value of either the citrus grove or the bungalow court. With reference to the value of the former property plaintiffs called' Hugh Palmer, a resident of Yuma, who testified that he was familiar with the citrus grove, having taken care of it during the few months that defendants had it; that the grove, consisting of approximately 7½ acres of oranges and 2½ acres of grapefruit, was “in good condition”, and had a reasonable value, at the time the contract was executed, of $1500 an acre. Plaintiffs introduced no evidence whatever as to the value of the Woollett property at Santa Monica. Such proof, it seems to us, was indispensable to plaintiffs ’ cause of action, and its absence would have justified a motion for a nonsuit. Section 3391 of the Civil Code provides that specific performance cannot be enforced against a party to a contract “if he has not received an adequate consideration” for the same, or, “if it is not, as to him, just and reasonable”.

As pointed out in the case of Porter v. Anderson, 14 Cal. App. 716, 721 [113 Pac. 345, 347]: “The Code rule, as it is thus given is only a legislative reaffirmation of the rule as to the remedy of specific performance as it has always been recognized and practised in courts of equity. Unless the contract is perfectly fair, equal and just in its terms and in its circumstances, a court of equity will incontinently refuse to specifically enforce it. And a natural concomitant of this unassailable and well-understood proposition is the rule that a party seeking to invoke this equitable remedy must plead as well as prove that the obligation is just and reasonable as to the party against whom he asks its specific [233]*233enforcement.’’ (See, also, Windsor v. Miner, 124 Cal. 492 [57 Pac. 386]; Martin v. Condrey, 13 Cal. App. 618 [110 Pac. 457]; Rittigstein v. Dignan, 122 Cal. App. 357 [9 Pac. (2d) 856] ; Bonney v. Petty, 125 Cal. App. 527 [13 Pac. (2d) 969].)

In the absence of an admission in the answer that the contract is fair and supported by an adequate consideration, it is manifestly incumbent on a party seeking specific performance, to affirmatively show that his right to the remedy is not barred by the code section quoted. And he is not relieved of this duty merely because the defendant relies on fraud as one of several affirmative defenses. (Windsor v. Miner, supra.) If the allegations of the complaint as to fairness and adequacy of consideration are properly traversed by the answer, an issue of fact has been joined and plaintiff is put upon his proof. In the instant ease the proof undoubtedly stopped short of the goal. How could the court have determined the equity of the transaction without evidence as to the value of the Santa Monica property f But the defendants, instead of relying on the patent deficiencies of plaintiffs’ case, as they could have done, proceeded to offer evidence on the question of value and also in support of their several affirmative defenses. W. H. Fitchmiller, a real estate broker of Santa Monica, testified that he was familiar with realty values in Santa Monica; that he knew the Woollett apartments and had appraised the same; that the property, including the furnishings, had a market value, as of March 19, 1932, of $16,859.57. Voyle L.

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Bluebook (online)
42 P.2d 1056, 5 Cal. App. 2d 229, 1935 Cal. App. LEXIS 1048, Counsel Stack Legal Research, https://law.counselstack.com/opinion/haidopoulos-v-woollett-calctapp-1935.