International Airports, Inc. v. Finn

282 P.2d 102, 132 Cal. App. 2d 293, 1955 Cal. App. LEXIS 2185
CourtCalifornia Court of Appeal
DecidedApril 18, 1955
DocketCiv. 20076
StatusPublished
Cited by1 cases

This text of 282 P.2d 102 (International Airports, Inc. v. Finn) 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
International Airports, Inc. v. Finn, 282 P.2d 102, 132 Cal. App. 2d 293, 1955 Cal. App. LEXIS 2185 (Cal. Ct. App. 1955).

Opinion

DRAPEAU, J.

Defendants owned a Curtiss-Wright C46 aircraft which they wanted to operate commercially. Plaintiff agreed to do the work required to license the plane for that purpose. Pursuant to an agreement executed by the parties on August 31, 1951, plaintiff lent defendants $15,000. To secure this loan defendants executed a promissory note and a chattel mortgage.

The agreement provided that the required work was to be completed within 90 days after delivery of the plane, defendants to furnish certain necessary items on demand from plaintiff: seats, tail assembly and other fittings; licensing and operating specifications and hull insurance.

It was also agreed that plaintiff should lend defendants *295 additional funds up to $15,000, if required to complete their obligations under the contract. This sum to be added to the preceding loan and new papers executed for the total loan.

Defendants were required by the agreement to pay for the work on an actual cost basis of time, material, reasonable overhead and profit, the total not to exceed $29,500. And such amount was to be added to the preceding loan or loans and a new note and chattel mortgage executed to cover the total sum.

The total amount was to be amortized and paid in 18 equal monthly installments, commencing upon payment by plaintiff of the initial rental required by a lease of the airplane dated August 31, 1951. Succeeding monthly installments under the agreement were to be offset and deducted from succeeding rental payments.

Defendants were privileged to pay to plaintiff the entire balance at any time. And in the event of termination or cancellation of the lease, plaintiff extended to defendants a moratorium on their payments on the note for a period of 120 days or, if sooner, until said plane were sold or released.

Defendants granted to plaintiff “first refusal to purchase said aircraft at the same price and terms as are offered by any other bona fide intended purchaser.”

The lease, above referred to, was executed, concurrently with the agreement. It ran for a term of 18 months after actual delivery of the plane to plaintiff; such date to be not later than 90 days after the plane was delivered to plaintiff for performance of the work contemplated by the agreement. The rental for use of the aircraft was $5,000 per month which was subject to offset of defendants’ payments on the note and chattel mortgage.

Defendants delivered the aircraft to plaintiff about October 19, 1951. Much of the work performed was done between November 16 and December 20, 1951. On the latter date, work was stopped by plaintiff for failure of defendants to deliver licensing specifications when demanded. Work was resumed sometime in March of 1952. About April 14th, defendants told plaintiff they could not deliver the seats and other equipment or the licensing specifications; and requested that plaintiff put the plane in bare flyable condition. Accordingly, plaintiff commenced additional work on the plane to put it in that condition under an agreement drawn up for that purpose. However, about April 18th, defendants brought *296 in their own crews, utilizing the hangar and the shops of plaintiff, and proceeded to do the work themselves.

On May 25, 1952, the aircraft was in plaintiff’s hangar. That day, a man driving a truck came onto the field and unloaded some radios. “He opened the gate, let in a truck, a surplus arms carrier, with the Finns and three other men.” The plane was towed a distance of 80 to 100 feet to the west side of the hangar, and the engines started. It was then taxied to the north end of the runway where it was parked on the ground. The six men returned to the truck and drove out the gate. A few days later the plane took off, headed north.

Shortly thereafter, plaintiff brought the instant actions against defendants for claim and delivery and for foreclosure of the chattel mortgage of August 31, 1951.

The two suits were consolidated for trial. The defendants were not represented by counsel but presented their own case in propria persona.

At the conclusion of a three-day trial, the court found: That the reasonable value of the work performed and the materials bestowed on the plane by plaintiff amounted to $10,014.43; that no promissory note secured by a chattel mortgage on the aircraft was ever executed to secure the value of said work and materials, as provided by the agreement of August 31st or the supplement thereto; and that plaintiff claimed a lien on the plane for the value of the work and material so furnished.

Also, that defendants without right and “by trick, device, force and duress” took the plane from plaintiff’s possession and without its consent.

Further, the plaintiff was not in default under the contract or the lease and that defendants were in default.

From the facts found, the court concluded that plaintiff was entitled to:

1. A judgment against defendants for the possession of the plane or in the alternative the sum of $10,014.43;
2. A lien against the aircraft to secure the said sum of $10,014.43;
3. Enforce and foreclose the chattel mortgage of August 31, 1951, upon the plane covered thereby, and to have the plane sold and the proceeds applied upon the payment of the $15,000 evidenced by the promissory note. And also upon attorneys’ fees of $750.

From the judgment which followed, defendants appeal.

*297 It is first contended that no lien can be imposed upon the aircraft. This for the reason that the supplement to the agreement executed early in September of 1951 expressly provides:

“10. International hereby waives all statutory liens, and the benefit of any statutory liens in regard to the work, labor, improvements or storage of said aircraft, upon execution by the Finns of a promissory note and chattel mortgage in the amounts provided hereunder, which promissory note and chattel mortgage the Finns agree to execute as herein provided. International agrees that such mortgage and the manner of payment herein shall constitute its sole rights in this regard.”

Section 1 of the Aircraft Lien Act (1 Deering’s Gen. Laws, Act 153d; Stats. 1949, ch. 654) which was in effect when the instant documents were executed, reads:

“Every person has a lien dependent upon possession for the compensation to which he is legally entitled for making repairs or performing labor upon, and furnishing supplies or materials for, and for the storage, repair or safekeeping of, any aircraft . . . subject to the limitations set forth hereinafter.”

This section was added to the Code of Civil Procedure in 1953 as section number 1208.61.

Also, as stated in 10 California Jurisprudence 2d 505, section 8, citing Douglass v. McFarland, 92 Cal. 656 [28 P. 687]:

“An action in claim and delivery may be maintained by one who has a qualified interest in the property which is the subject of the litigation, providing he has a right to its possession . . .

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Related

In Re Finn
318 P.2d 816 (California Court of Appeal, 1957)

Cite This Page — Counsel Stack

Bluebook (online)
282 P.2d 102, 132 Cal. App. 2d 293, 1955 Cal. App. LEXIS 2185, Counsel Stack Legal Research, https://law.counselstack.com/opinion/international-airports-inc-v-finn-calctapp-1955.