Leavitt v. Gibson

43 P.2d 1091, 3 Cal. 2d 90, 1935 Cal. LEXIS 403
CourtCalifornia Supreme Court
DecidedApril 2, 1935
DocketL. A. No. 12592
StatusPublished
Cited by33 cases

This text of 43 P.2d 1091 (Leavitt v. Gibson) is published on Counsel Stack Legal Research, covering California Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Leavitt v. Gibson, 43 P.2d 1091, 3 Cal. 2d 90, 1935 Cal. LEXIS 403 (Cal. 1935).

Opinions

THE COURT.

The opinion prepared by Presiding Justice Conrey, District Court of Appeal, Second Appellate District, Division One, and adopted by that court when the above-entitled cause was before it for hearing and decision, is hereby adopted by this court as its decision in said cause, together with the authorities and observations added thereto by this court. It follows:

“In March, 1927, and for a long time prior thereto, the plaintiffs were the owners of a parcel of real property on Fair Oaks avenue in the city of Pasadena, said property being of the fair and reasonable market value of $42,000. The transaction out of which the controversy herein arose consisted of a conveyance of said Fair Oaks property by the plaintiffs to one Phil D. Rice, the consideration therefor being the sum of $10,000, together with assignment and transfer to plaintiffs of a note of $32,000 made to Rice by one John L. Hittson, secured by a second trust deed on certain property situate in Riverside County, and known in this record as the Granite Hill ranch. Soon after the above-mentioned transaction was closed, the property was sold to defendant Frederick M. Kincaid, by the trustee of the first trust deed, to pay the note secured thereby, which was a note of $40,000 made by Rice together with the said first trust deed, before the Granite Hill ranch was conveyed by Rice to Hittson. Prior to the sale by the trustee, Gibson had transferred the $40,000 note to Kincaid. In this action the court found, upon sufficient evidence, that the value of said ranch property was less than the sum of $40,000. This fact, together with the fact that Hittson was financially irresponsible, made the $32,000 note worthless. The net result was that the plaintiffs, for their Fair Oaks property, worth $42,000, received nothing of value except the sum of $7,000, which remained of the said $10,000 after payment of about $3,000 [93]*93in expenses of the sale, ‘incurred by the plaintiffs, which expenses included a commission of $2,000 paid to the defendant George Burnham.

“On or about the 31st day of March, 1927, the deed of conveyance of the Fair Oaks property by plaintiffs to Rice was delivered out of escrow, and the other elements of the transaction were completed. On April 17, 1928, the plaintiffs commenced this action, as an action to recover damages for 'fraud and deceit’, alleged to have been practiced upon them by the defendants, whereby the plaintiffs were induced to accept said $32,000 note and second trust deed as part of the consideration for the transfer of their property. Upon issues presented by the pleadings, the case went to trial, beginning on December 12, 1928. On January 21, 1929, the parties had rested after presenting their evidence. Thereupon an agreement was made for argument by means of briefs, and the following order was made by the court and entered in the minutes: 'Cause to stand submitted on presentation of closing brief, fifteen, ten and fifteen days allowed. Plaintiffs to open.’ (Concerning orders of this kind, see Franks v. Cesena, 192 Cal. 1, at p. 3 [218 Pac. 437].) These time limits were exceeded, in fact, on both sides. On May 1, 1929, a time when the reply brief of plaintiffs had not yet been served or filed, defendant John W. Gibson died Thereafter, prior to July 17, 1929, his will was admitted to probate. Grace Ina Gibson and Thelma Gibson were appointed executrices of the will. In due course the plaintiffs herein filed as a claim against the estate their demand, covering the subject of this action. Said claim failing of approval, the plaintiffs then gave notice of motion, in this action, for an order substituting the executrices as defendants in place of John W. Gibson, and for leave to proceed by ‘amended and supplemental complaint’, etc. On July 24, 1929, said motion was presented, and was granted. An ‘amended and supplemental complaint’ was filed. In this pleading the plaintiffs, by reference, realleged the matters contained in their former pleadings, and set forth supple-mentally the fact of Mr. Gibson’s death and the subsequent proceedings in relation thereto. An answer having been filed, the case was again brought on for trial, on the 30th day of July, 1929, pursuant to notice duly given. The defendants, however, did not then appear. The court in its [94]*94order of July 24th had provided that on July 30th ‘the said cause shall be reopened for the sole purpose of receiving evidence concerning the death of- Gibson and the said supplemental proceedings’. At the hearing on July 30th that evidence was received, and no evidence was offered or received as to any of the issues made by the original pleadings. On July 24, 1929, the attorneys for the plaintiff delivered to the court a brief which (says the bill of exceptions) ‘was and is the closing brief referred to in that portion of said order of January 21, 1929, which reads as follows: “Cause to stand submitted on presentation of closing brief” ’.

“On November 8, 1929, the court filed its findings of fact and conclusions of law, directing judgment in favor of the plaintiffs. Paragraph four of the conclusions of law states: ‘In view of the circumstances of this particular case, justice requires that this decision, these findings of fact and conclusions be filed nunc pro iunc as of date January 22, 1929, the day following the time the taking of evidence was concluded. ’ Accordingly the decision was filed ‘nunc pro tunc as of January 22, 1929’. Nevertheless, the findings themselves do include the proceedings to which we have referred, arising out of the death of defendant Gibson. Pursuant to the findings thus made and the court’s conclusions thereon, judgment was entered in favor of the plaintiffs and against defendants John W. Gibson, Frederick M. Kincaid and Zeddy Barker, as well as against other defendants who have not appealed, for damages in the sum of $35,000, together with the sum. of $25,000 as exemplary damages. The said total sum of $60,000 was ‘established and allowed’ against the estate of Gibson in accordance with the supplemental complaint. Judgment was entered November 9, 1929.

“There are two notices of appeal, one being by the executrices of the will of Gibson and by Kincaid and Barker, and being an appeal from the judgment, and the other is an appeal by said executrices from an order entered by the court on January 7, 1930, denying a motion of the defendant executrices whereby they asked the court to vacate and set aside the judgment rendered in said action against the said John W. Gibson, deceased.

“In order to understand the situation existing at the time when plaintiff parted with their Fair Oaks property for the [95]*95considerations hereinabove stated, it is necessary to have in mind certain recent earlier history of the Granite Hill ranch. In September, 1925, that property was owned by B. Van Wiekle; subject, however, to an $18,400 mortgage in favor of the First Trust & Savings Bank of Pasadena and F. H. Gilerist, and also subject to a trust deed (junior to the mortgage) securing $31,500 in notes payable to the order of Herbert A. Stokes and wife. The $31,500 note was sold and transferred to defendant Gibson. Default having been made on this note the property was sold to defendant Barker for $1,200. It is admitted that in this purchase and in the subsequent transfer by Barker to Rice, defendant Barker was acting as agent for Gibson. The record thus shows that in March, 1927, the record title to the Granite Hill ranch stood in the name of Barker (the real owner being Gibson), and was subject to the $18,400 mortgage.

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Bluebook (online)
43 P.2d 1091, 3 Cal. 2d 90, 1935 Cal. LEXIS 403, Counsel Stack Legal Research, https://law.counselstack.com/opinion/leavitt-v-gibson-cal-1935.