Kejr v. Natural Resources, Inc.

333 P.2d 93, 166 Cal. App. 2d 571, 1958 Cal. App. LEXIS 1439
CourtCalifornia Court of Appeal
DecidedDecember 24, 1958
DocketCiv. No. 9366
StatusPublished
Cited by1 cases

This text of 333 P.2d 93 (Kejr v. Natural Resources, Inc.) 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
Kejr v. Natural Resources, Inc., 333 P.2d 93, 166 Cal. App. 2d 571, 1958 Cal. App. LEXIS 1439 (Cal. Ct. App. 1958).

Opinion

VAN DYKE, P. J.

—Plaintiff-respondent brought this action against defendant-appellant Mendocino Logging Company and defendant-appellant Construction Engineers, In[573]*573corporated, to quiet title to 40 acres of timber land in Mendocino County. The appeal is from a judgment decreeing that plaintiff is the owner of the property and quieting his title thereto. The complaint is in the usual brief form of an action to quiet title. Appellants’ answers denied the allegations of plaintiff’s ownership and affirmatively pleaded that they owned the timber on the land.

On September 27, 1948, six people, four of whom bore the name “Hopkins” and two of whom bore the name “Raderchak,” and all of whom were related, were the owners of the subject property. We shall refer to this group as “Hopkins.” On that day, and simultaneously, they executed two documents with 0. 0. Barker. One was a quitclaim deed and the other was a document called a holding agreement. The deed contained a statement that the interest thereby conveyed was subject to the holding agreement. The deed was recorded. The holding agreement was not. The trial court found on sufficient evidence that appellant Construction Engineers, Inc., had both actual and constructive notice of the existence and contents of the holding agreement at the time it now claims to have acquired title to the timber on the property by a contract of sale from Barker. Construction Engineers, Inc., later assigned its interest in the timber to appellant Mendocino Logging Company which, as the court found, also took with notice of the holding agreement.

The holding agreement begins by reciting that the parties have a mutual interest in the 40 acres described therein, and then continues to state the following: That it is desirable ‘ ‘ that no transfer of any interest which each of us may hold in the property be transferred or assigned without the mutual consent of all, ’ ’ including Barker; that Barker is to act as the representative of Hopkins in the performance of certain things which by the agreement he agrees to perform; that Barker is to accept a transfer of the property to him by deed and is to hold the transfer and deed for the following uses and purposes: (a) In his discretion to bring a suit to quiet title if needed, (b) If necessary, to engage the services of a surveyor to survey and cruise the land in order that he may be “in a position to effectively negotiate either resale of the premises, or if he deems it more desirable, agreements for sale of timber only without conveying the lands,” (c) To advance necessary expenses for surveys, quiet title actions or in any other manner other than by action, and to prorate to each of the owners the [574]*574expenses thereof, (d) As remuneration, Barker was to receive 10 per cent of the revenue resulting either from a sale or from income derived from any contract for the sale of the timber which he might make. It is stated that Barker, by written acceptance of the agreement became obligated “to carry forth the purposes of this holding agreement for the joint and mutual interests of all of the parties. ’ ’ For the holding agreement the parties used a printed form on which the property description was filled in. It was in evidence that the form was commonly used by Barker along with quitclaim deeds in aggregating small timber holdings for the purpose of being able to offer large tracts of timber for sale. Barker purported to sell the timber on some 7,000 acres of land of which the 40 acres, the subject of this action, was a part. The consent of Hopkins to the contract of sale was not obtained.

It is appellants’ primary contention that Barker had power not only to negotiate for a sale of the timber, but to sell and transfer the same and bind Hopkins by his acts.

After a time, five of the Hopkins group conveyed their interests in the 40 acres to plaintiff. During the trial Barker quitclaimed such interest in the land and timber as he might have to plaintiff. The decree quieted plaintiff’s title to an undivided five-sixths interest in the land and timber thereon.

It appears that Barker was a licensed real estate broker whose principal business was negotiating sales of timber lands to logging companies. His method of operation was to have owners quitclaim their property to him subject to holding agreements similar to the holding agreement executed between himself and Hopkins. He would then endeavor to sell the timber or the land in large blocks rather than in the smaller units covered by the individual transactions between himself and small owners. When representatives of Construction Engineers, Inc., were negotiating with Barker for the purchase of the timber on the 7,000 acres covered by the contract later executed by Barker, they had before them many of these holding agreements and in many instances used them for the purpose of describing parcels of the lands included in the contract with Barker. It appears also that Barker told them of the existence of the holding agreements and some reference was made in the contract between Construction Engineers, Inc., and Barker to the effect that some of the lands were under holding agreements.

When the quitclaim deed and the holding agreement are construed together, as they must be, as though they were one [575]*575’ document, it becomes apparent at once that the holding agreement placed limitations upon the title purportedly conveyed by the deed to Barker and upon his power to deal with the land and timber. It is equally apparent that the two documents are ambiguous and uncertain as to just what title and powers Barker had. Considerable evidence concerning the negotiations between the parties was introduced. As said in Universal Sales Corp., Ltd. v. California Press Mfg. Co., 20 Cal.2d 751, 761 [128 P.2d 665] :

“As an aid in discovering the all-important element of intent of the parties to the contract, the trial court may look to the circumstances surrounding the making of the agreement . . ., including the object, nature and subject matter of .the writing . . ., and the preliminary negotiations between the parties . . ., and thus place itself in the same situation in which the parties found themselves at the time of contracting. ’ ’

l With the instruments and the evidence before it, the trial court determined that Barker was given no power to bind Hopkins by any contract he might make concerning the property or the timber, except as they, in some effective way, consented thereto. The record amply supports this determination of the trial court. Although as a part of the transaction between them the Hopkins group gave to Barker a quitclaim deed, they tied that deed to the holding agreement by apt reference. It is expressly stated therein that no transfer of any interest which the parties hold in the property can be transferred or assigned without the mutual consent of all. If there be any ambiguity in this provision as one limiting the title and the power of Barker, the trial court was fully authorized in interpreting the contract as denying to him any power to transfer or assign any interest in the property without Hopkins’ consent.

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Cite This Page — Counsel Stack

Bluebook (online)
333 P.2d 93, 166 Cal. App. 2d 571, 1958 Cal. App. LEXIS 1439, Counsel Stack Legal Research, https://law.counselstack.com/opinion/kejr-v-natural-resources-inc-calctapp-1958.