Hayne v. Gould

54 F. 951, 1893 U.S. App. LEXIS 2517
U.S. Circuit Court for the District of Southern California·Decided February 13, 1893·No. No. 176·Published·Cited by 1 cases

Opinion

ROSS, District Judge.

On the 26th of September, 1885, the plaintiff, who owned 160 acres of land in the Santa Ynez valley, about 45 miles from the city of Santa Barbara, and had contracted for the purchase from D. O. Mills of an adjoining tract of 80 acres, and also owned a large olive nursery, and certain personal property consisting of farm stock and implements, entered into a written contract with the defendant, who was a lawyer, engaged in the practice of his profession in the city of New York, but who was at the time on a visit to his brother and other relatives residing at Santa Barbara, by which the defendant was to acquire an undivided one-half interest in the above-mentioned real estate and personal property, and in the olive trees, to be planted as afterwards to be stated, by paying therefor $7,795 in this wise: Upon the approval of the title to the lands by competent counsel, defendant was to pay to Mills or his agent the unpaid purchase money due from plaintiff to Mills, with interest, estimated to be about $1,300, and upon the recording of the deed from Mills to plaintiff the latter was to execute to defendant a deed for one undivided one half of all of the real estate, whereupon defendant was to, pay to plaintiff $4,000, less the amount previously paid by him to Mills. During the planting season of 1886, plaintiff was to set out upon the land at his own expense 5,000 olive trees of the age of three years, and, when those trees should be so planted, defendant was to pay plaintiff the further sum of $2,545, making payment in full for the undh vided one-half interest in the real estate, 5,000 olive trees and the personal property, a schedule of which was annexed to the agreement. The agreement further provided that, during the planting season of 1887, plaintiff should furnish an additional 5,000 olive trees to be set out on the lands, and for an undivided one-half interest in those trees defendant was to pay plaintiff $1,250, and also [953]*953one half of the expenses incurred by plaintiff after sucb trees should be loaded on proper vehicles for transportation to the lands. Plaintiff was to give Ms undivided time and attention to the business of cultivating and managing'the lands as a farm and olive orchard, and, in consideration thereof, defendant agreed to pay the wages of a hired man and Ms board, such board being estimated at the rate of $3.50 a week. Plaintiff was to be at liberty to engage a coolc for the farm, one half of whose wages (such, however, not to exceed $10 a month) was to be paid by the defendant. Plaintiff was to keep accurate and particular hooks of account of the whole business of the farm, and to render defendant quarterly statements thereof. Defendant was to be chargeable with no expense of the management of the farm, except for the cost of erecting a suitable fence, until after the first orchard of 5,000 olive trees should be set out as specified in the agreement. Defendant, upon receipt of the quarterly statements from plaintiff, was to promptly “discharge any and all indebtedness, incurred as hereinbefore expressed, which may be due from him to said Hayne; and, per contra, should the quarterly statements show a credit balance, or should any profit accrue, said Hayne agrees to pay said Gould one half thereof.”

The foregoing is the substance of the written agreement entered into between the parties September 26, 1885. The evidence shows that the plaintiff was indebted at the time, but that he assured the defendant that the money to be paid by him for an undivided half interest in the property would enable plaintiff to discharge his indebtedness, and that he would not again go into debt. In discussing the venture, at or about the time of making the agreement, plaintiff spoke to defendant about a piece of adjoining land owned by Mills which it would be well for them to acquire, to be used as a farm and pasture in connection with the olive ranch. Defendant replied that he knew Mills, and could, he thought, deal to better advantage with Mm in New York than plaintiff could here, and would during the winter arrange for its purchase. Plaintiff also, about the same time, expressed the wish to build a cheap house on the property for Ms own use, and defendant agreed to bear half the cost of such a house, the estimated cost of which, according to the testimony of defendant, was $200, according to the testimony of defendant’s brother, who acted as agent for defendant in respect to the property, $300, and according to the testimony of plain ¡iff, $450. The payments stipulated to be made by the defendant in and by the agreement of September 26, 1885, and slightly modified by a subsequent agreement afterwards to be noticed, were by defendant made, and he received a conveyance from the plaintiff of an undivided one-half interest in the property. On the 29th of December, 1885, plaintiff and defendant entered into a “nursery contract,” by which Hayne agreed to provide and plant in proper condition, in the spring of 1886, olive cuttings to the number of at least 30,000, and not to exceed 50,000, on the land belonging to Mm or provided by him in Montecito, or on the ranch of Gould and Hayne in Santa Ynez, or partly on the one ground and partly on the other, and to care for and cultivate the cuttings for two years [954]*954after the planting, and until they should be ready for transportation and sale, Gould agreeing to pay for the cuttings at the rate of 2⅞ cents for each cutting, the payments to be distributed as follows: First, after the cuttings should be fully set out, Gould to pay one half of the whole sum due from him; and one year after the first payment to pay half of the balance due from him; and two years after the first payment to pay the entire balance due from him; the cuttings to belong to Gould and Hayne, share and share alike. The agreement further provided that at the expiration of two years after the year of the planting, should there be remaining in the nursery any small scattered trees, Hayne should have the privilege of removing them and setting them out in a new nursery.

Plaintiff proceeded with the setting out of the 5,000 trees and the cultivation and management of the ranch. Owing to the mistaken estimates of the material man, and to the fact that a storm of rain washed away a part of the adobe walls of which the house spoken of was in part built, it transpired that its cost amounted to $700, and this excess of cost over the plaintiff’s estimate gave rise to the first dispute between the parties, and resulted in much acrimonious correspondence between them, and in a refusal of the defendant to pay more than $150 towards the construction of the house, which sum he paid. The next trouble that arose between the parties came from the fact that plaintiff, in violation of his own suggestion to defendant to acquire for their joint benefit the' adjoining tract of Mills, contracted to purchase that tract for himself, giving his promissory notes therefor, in further violation of his promise to defendant not to go into debt, and proceeded to work this newly-acquired land with the teams of plaintiff and defendant. Against this conduct on the part of plaintiff the defendant protested. Plaintiff replied that he had not understood the matter as had the defendant, and' that he entered into that contract of purchase in order to provide for his brother, Benjamin Hayne. The controversy between plaintiff and defendant growing out of this matter was settled by a tripartite agreement, in writing, entered into March 11, 1886, between plaintiff and defendant and Benjamin Hayne, which agreement recites that—

“Whereas, said Gtould and said W. A.

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Hayne v. Gould, 54 F. 951, 1893 U.S. App. LEXIS 2517 (circtsdca 1893).

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