Landreth v. South Coast Rock Co.

29 P.2d 225, 136 Cal. App. 457, 1934 Cal. App. LEXIS 1015
CourtCalifornia Court of Appeal
DecidedJanuary 27, 1934
DocketDocket No. 1435.
StatusPublished
Cited by17 cases

This text of 29 P.2d 225 (Landreth v. South Coast Rock Co.) 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
Landreth v. South Coast Rock Co., 29 P.2d 225, 136 Cal. App. 457, 1934 Cal. App. LEXIS 1015 (Cal. Ct. App. 1934).

Opinion

MARKS, J.

Plaintiff and defendant entered into a contract dated April 1, 1931, whereby plaintiff agreed to produce sand, gravel and rock at his plant near the town of San Juan Capistrano in Orange County, and make deliveries to defendant on defendant’s trucks at the place of production. Defendant agreed to transport and market the products, making collections for the sales. The receipts for each month were to be deposited in the First State Bank of San Juan Capistrano and apportioned between the parties on or about the fifteenth of the following month. Plaintiff was to receive fifty cents a ton for production charges, which was to be the first charge paid from the gross receipts. Defendant was to receive transportation charges as the second charge against the gross receipts. The balance was to be divided equally between the parties. The agreement contained a provision that “in case any disagreement or difference shall arise at any time between the parties hereto, or any person claiming under them in relation to this contract, either as to the construction or operation thereof or the respective rights and liabilities thereunder, such disagreement or difference shall be submitted to the arbitration of three persons”.

This action grew out of a dispute between the parties concerning payments on two separate accounts, one of which we will refer to as the Griffith account and the other as the Collins account.

Prior to April 1, 1931, plaintiff had a contract whereby he was to furnish rock, sand and cement, mixed in batches, to *460 the Griffith Company to be used in paving a part of the state highway. It was agreed by the parties here, prior to the making of their contract, that plaintiff should complete this contract and that the Griffith account would not come within the terms of the contract of April 1, 1931. It was further agreed that defendant would receive ten cents a ton, or ten cents a batch, for the deliveries on the Griffith contract. Apparently defendant made the collections on this contract and deducted ten cents a ton as its share of the receipts. A batch of the materials weighed approximately thirty-five hundred pounds. Plaintiff maintained the agreement was to pay ten cents a batch, but defendant maintained that it was to pay ten cents a ton. The trial court, upon conflicting evidence, found in accordance with the testimony of the plaintiff.

Arthur P. Collins was a dealer in sand, rock and gravel with his place of business in the city of Laguna Beach. He purchased his materials from the parties here, defendant acting as the seller. Collins did his own hauling, for which he was paid by the defendant. Plis bills for materials were almost entirely paid with credits for hauling done for defendant. Defendant made settlements with plaintiff as though Collins had paid in cash. The materials purchased in April, 1931, were credited as paid June 22d; those in May, as July 11th; those in June, as August 12th; those in July and August, as November 11th; those in September, as October 20th; and those of October, as early in November. Plaintiff received his payments on those dates, with the possible exception of the October account.

The billheads used by the parties contained a statement that a discount of twenty cents a ton would be allowed each purchaser, provided the monthly account was paid by the fifteenth of the following month. Collins was allowed this discount although plaintiff did not receive his share of these receipts until the dates we have just given, all but one of which came after the fifteenth day of the subsequent month. Plaintiff claimed Collins was entitled to no discount on the bills which he failed to pay by the fifteenth of the subsequent month and that defendant owed him one-half of the discount so given. The trial court resolved this question in favor of plaintiff.

*461 The complaint contained two causes of action: (1) For a balance due and unpaid upon an open book account, and (2) for money had and received by the defendant. The answer denied the material allegations of the complaint and set up as a separate defense the agreement to arbitrate.

Defendant urges that as the contract contained an agreement to arbitrate any differences, plaintiff’s action should have been stayed until an arbitration was had. He relies upon the provisions of section 1284 of the Code of Civil Procedure, which provides that where the court is satisfied that the issue involved in an action is referable to arbitration it “shall stay the action until an arbitration has been had in accordance with the terms of the agreement; provided, that the applicant for the stay is not in default in proceeding with such arbitration’’.

Sections 1280 to 1293, inclusive, of the Code of Civil Procedure, adopted in 1927, are intended to provide for arbitration of disputes arising under contracts containing an arbitration clause, before the court adjudicates the merits of the controversy. Plaintiff urges the unconstitutionality of these sections, but from the view we take of this case it is unnecessary to decide this question.

As we have noted, section 1284 of the Code of Civil Procedure would indicate that the party relying on the. agreement to arbitrate should make an application to the court for a stay of the pending action. Section 1282 of this same code gives to a party aggrieved by the failure, neglect or refusal of another to perform under an arbitration agreement, the right to petition a superior court for an order directing such arbitration. Section 1285 provides for a summary hearing of any application made under the authority of the arbitration act. It would seem clear from these and the other sections of the act that the legislature intended to give a party desiring arbitration the right to demand it, and that the party desiring the arbitration should take some steps to secure it. This was the procedure followed in the case of Tiffany Products, Inc., v. Superior Court of Los Angeles County, 123 Cal. App. 50 [10 Pac. (2d) 798].

It is well settled that • ordinarily a right given by statute or created by contract máy be waived by the party in whose favor it exists. Dicta in the case of Palmer v. Fix, 104 Cal. App. 562, 571 [286 Pac. 498], would indicate that *462 where a suit was pending, involving a contract containing an arbitration agreement, and the defendant made no request or application to the court to stay the action pending such arbitration, he waived his right to demand such a proceeding and submitted to the jurisdiction of the court to render judgment upon the merits. While this is dicta it would seem to be well founded in reason. The act in question does not by its terms seem to intend to deprive the superior court of jurisdiction of cases involving contracts with arbitration agreements, but merely to provide a summary means by 'which the arbitration agreement can be enforced should one of the parties desire to rely upon it. It would seem to be the right of the party to invoke this summary power of the court which would be waived if he did not avail himself of it.

“A person may waive any civil right and the benefit of any statute or code provision in respect of his rights and obligations, unless such waiver would be against public policy.

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Bluebook (online)
29 P.2d 225, 136 Cal. App. 457, 1934 Cal. App. LEXIS 1015, Counsel Stack Legal Research, https://law.counselstack.com/opinion/landreth-v-south-coast-rock-co-calctapp-1934.