Keller v. Hiers

239 P.2d 6, 108 Cal. App. 2d 424
CourtCalifornia Court of Appeal
DecidedDecember 27, 1951
DocketCiv. No. 18528
StatusPublished
Cited by2 cases

This text of 239 P.2d 6 (Keller v. Hiers) 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
Keller v. Hiers, 239 P.2d 6, 108 Cal. App. 2d 424 (Cal. Ct. App. 1951).

Opinion

SHINN, P. J.

On November 13, 1947, plaintiff gave defendants and defendants accepted a written order for the purchase at $4.25 each of 1,000 soda fountain pumps to be manufactured by defendants as per sample furnished by plaintiff. The agreement read in part:

"Also, find enclosed a cashier’s check for $2125.00 to be applied on our account, balance to be paid after completion and delivery of 1000 pumps. If said pumps are not completed and delivered within a period 90 days from this date, the sum of $2125.00 is to be returned to the A. J. Keller Sales Co. together with any attorney fees, court costs, etc., which may be incurred in the collection of said monies.
"The acceptance and cashing of the enclosed cashier’s check be deemed as full and complete acceptance of this purchase order together with all its stipulations and shall make the same binding just the same as if it were a signed contract.”

After plaintiff had granted several extensions of time and defendants had failed to fulfill their agreement it was terminated by plaintiff for nonperformance. He then brought this action seeking: (1) Return of $2,125 plus attorney’s fees and costs of collection; (2) $10,000 damages for breach of the agreement; (3) rescission and the return of his deposit, and (4) an injunction against the use of his information and ideas for the manufacture of such pumps. Defendants answered and by a counterclaim and an action separately filed sought recovery for work, labor and services performed for [427]*427plaintiff of the reasonable value of $19,236.70. After an extended trial the court found that defendants had breached the contract and plaintiff was entitled to the return of $2,125 plus $500 attorney’s fees and $96 as costs of collection, or a total of $2,721. Defendants were awarded $2,939.76 for work done for plaintiff and judgment was entered in their favor for the net sum of $218.76. Plaintiff appeals.

As the trial court construed the contract return of $2,125 was agreed upon as the exclusive measure of any damages which plaintiff might suffer as a result of defendants’ breach. This construction is assailed by plaintiff. He says he was entitled not only to the return of $2,125 but also to damages for the loss of his bargain. The trial court was of the opinion that the parties had anticipated failure of the manufacturing effort and by their agreement had furnished the answer to the principal issue in the case. We do not disagree with this conclusion.

The questioned clause in the agreement established a definite sum as the measure of plaintiff’s right and of defendants’ liability in case of failure of performance by defendants. This was not merely the amount deposited but also liability for attorney’s fees and costs that might become necessary in recovering the deposit. The circumstances under which the agreement was entered into shed light upon the intentions of the parties. The device had been conceived by plaintiff and had not previously been marketed or manufactured. The cost of manufacture had not been established. Time was made of the essence of the agreement. In case of total nonperformance by defendants plaintiff would regain his capital without expense, and have it available for financing another contract. In case of defendants’ breach after partial performance plaintiff would be made whole either in money or goods. The problem of the trial court was to determine whether the parties intended that the return of plaintiff’s money would satisfy defendants’ liability for breach of their agreement. In arriving at a decision certain rules of construction were to be considered. If different constructions are equally proper that is to be taken which is most favorable to the party in whose favor the provision was made. (Code Civ. Proc., § 1864.) Defendants were the promisors with respect to the return of the deposit, but, insofar as the agreement indicated that plaintiff would not ask for more, he should be regarded as the promisor. (Cf. Earl Ranch, Ltd. [428]*428v. Marchus, 60 Cal.App.2d 379 [140 P.2d 891].) If uncertainty existed as to the scope of the agreement it was a latent one (see Pacific Indem. Co. v. California etc., Ltd., 29 Cal.App.2d 260 [84 P.2d 313]), and since plaintiff prepared the agreement it should be construed most strongly against him (Civ. Code, § 1654). Although there was no uncertainty of language there was an uncertainty of meaning which required the court to determine the sense in which the parties understood it. We must presume that the court was of the opinion that plaintiff believed defendants understood that return of the deposit would satisfy plaintiff. If so, the court correctly construed the agreement to accord with defendants ’ understanding. (Civ. Code, § 1649.) It would have been quite reasonable for defendants to believe that plaintiff had specified in the writing the conditions that were satisfactory to him and had omitted none. Any difficulties with respect to interpretation were caused by plaintiff. He is not in a favorable position to contend that defendants would have accepted his proposal if it had stipulated that upon their default they would be required to return plaintiff’s deposit, and in addition, compensate him for any damage he might have suffered. Plaintiff rescinded and sued for the return of his money and he also sued for damages. Any inconsistency in the two demands is immaterial, inasmuch as the judgment awarded plaintiff only what he was entitled to receive and defendants do not complain.

Grant v. Beronio, 97 Cal. 496 [32 P. 556], relied upon by plaintiff is not in point. It held that a provision “In case of failure to make deed, money paid to be returned” did not give the vendor the right to refuse to convey title upon the vendee’s offer to pay the purchase price. Such is not the contention of the defendants. They claimed only that plaintiff’s claims are in excess of what he had agreed to accept. The right of plaintiff to a return of his deposit was made certain. It was by no means certain at the time the agreement was entered into that under any and all circumstances that might develop plaintiff would have a right to rescind for defendants’ default and also the right to have his deposit returned. And except for the agreement, he clearly would not have had a right to recover attorney’s fees and costs. His sole remedy might have been in damages. It cannot be said that the agreement gave plaintiff only the rights he would have had without it.

[429]*429For these reasons we think the court did not commit error in concluding that it was the intention of the parties that return of the deposit to plaintiff would he his exclusive remedy in the event of defendants’ failure of performance.

Although we hold that plaintiff’s recovery was limited by the purchase agreement to the return of his deposit, the correctness of the judgment is further established by plaintiff’s failure to prove any greater damage. He relies upon testimony of one of the defendants that it would have cost defendants $10 per unit to complete the order. From this he argues that he should have been awarded $5.00 for each of 2,077 pumps, being the difference between the contract price and the cost of manufacture.

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239 P.2d 6, 108 Cal. App. 2d 424, Counsel Stack Legal Research, https://law.counselstack.com/opinion/keller-v-hiers-calctapp-1951.