Leonard v. Rose

65 Cal. 2d 589, 55 Cal. Rptr. 916
CourtCalifornia Supreme Court
DecidedJanuary 24, 1967
DocketL. A. 29225
StatusPublished
Cited by24 cases

This text of 65 Cal. 2d 589 (Leonard v. Rose) 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
Leonard v. Rose, 65 Cal. 2d 589, 55 Cal. Rptr. 916 (Cal. 1967).

Opinion

McCOMB, J.

This is an appeal by defendants from a judgment entered in favor of plaintiff.

*591 Facts: Ernest Fuqua, then acting as guardian of the estate of his incompetent wife, Mary Ellen Fuqua, filed an action against defendants herein and others (Fuqua v. Warner), demanding that they return or account for $75,000 worth of securities allegedly belonging to the ward and then in the possession of defendant A. Brigham Rose as a successor trustee.

Defendant A. Brigham Rose, acting on behalf of himself and his wife, defendant Zelletta M. Rose, negotiated with counsel for the plaintiff in that action over a possible settlement. They discussed the payment of certain sums as a down payment and further periodic payments during the ward’s life. The amount of $200 a month was arrived at for such periodic payments, and, by use of actuarial tables, the amount of $54,799.20 was determined to be the then commuted value of such periodic payments.

Rose thereupon orally agreed with counsel for the plaintiff that, in consideration of a dismissal with prejudice of the case of Fuqua v. Warner and a general release of the defendants therein, the Roses would pay Mrs. Fuqua $1,000 forthwith, $3,133.54 on or before February 1, 1954, and $200 a month commencing December 13, 1950, and continuing thereafter as long as Mrs. Fuqua should live; and that, in the event defendants should fall delinquent in any of the monthly payments and such delinquency should continue for 30 days, the sum of $54,799.20, less the total amount of the $200 monthly payments previously made, should, at the option of the plaintiffs or their attorney, immediately become payable.

Defendants executed a written contract of guaranty reciting the effect of the settlement agreement, and on December 8, 1950, the court made an order in the guardianship proceedings approving the settlement. A notice of the entry of such order was promptly served on defendants.

Defendants made the first and second payments of $1,000 and $3,133.54 and also made 90 monthly payments of $200 each, defaulting in June 1958. Notice of intention to accelerate the balance was duly given. No payment was made, however, and the present action was therefore begun. 1

*592 Plaintiff neglected to file a request for entry of dismissal in Fuqua v. Warner until June 27, 1963, the day after receiving a demand therefor from defendants.

Defendant A. Brigham Rose testified, denying the alleged contract and contending that the payments which he had made (which he did not deny) were made voluntarily.

The trial court made findings of fact, accepting and adopting plaintiff’s version, and thereupon entered judgment against defendants for $28,099.20, 2 together with interest in the amount of $10,133.36.

Questions. First. Did the settlement agreement violate the statute of frauds ?

No. The oral contract before this court was not required by the statute of frauds to be in writing, since there was a possibility that it could be performed within a year. An oral agreement to support a person for the balance of his life, or for some other indefinite period of time, must be regarded as having been made with a view to the possible death within a year of the person for whose benefit the agreement was made. Such an agreement, therefore, does not come within the purview of the statute. (See Gaskins v. Security-First Nat. Bank, 30 Cal.App.2d409, 418-419 [9] [86 P.2d 681].)

Second. Was plaintiff in default because the complaint in Fuqua v. Warner was not dismissed immediately after the settlement agreement was made ?

No. Defendants apparently contend that plaintiff did not dismiss the complaint in Fuqua v. Warner at the proper time. The evidence, however, indicates that the first time defendants requested performance was June 26, 1963, and the dismissal was filed promptly thereafter, on June 27,1963.

Where no time is specified for performance, a person who has promised to do an act in the future and who has the ability to perform does not violate his agreement unless and until a demand for performance is made and performance is refused, except in situations (not here present) where the evidence shows that the delay has operated to the detriment of *593 the promisee to such an extent as to render the delayed performance valueless, and the promisor was charged with knowledge of such special circumstances. (Publicists Local 818 v. National Screen Service Corp., 183 Cal.App.2d 491, 498 [8] [7 Cal.Rptr. 238] ; 3 World Sav. & Loan Assn. v. Kurtz Co., 183 Cal.App.2d 319, 326 [4] [6 Cal.Rptr. 665].)

Since defendants made no demand for the dismissal before June 26, 1963, and show no prejudice from the delay, they have no grounds to complain that Fuqua v. Warner was not dismissed at an earlier date.

Third. Did the settlement agreement involve a forfeiture ?

No. The agreement was, in no sense, one involving a forfeiture. The parties had agreed on a sum to be paid which, computed to its then present value, would provide Mrs. Fuqua with the agreed upon amount per month. Defendants were given the privilege of making payment in installments, with the possibility that the payee would die before the total sum became due.

The express agreement by which that privilege was to be lost, and the balance of the computed obligation would become payable, was an ordinary acceleration clause, requiring payment of the exact sum by which the payee would be damaged by a default. As such, it was clearly valid. (See Aristocrat Highway Displays, Inc. v. Stricklen, 68 Cal.App.2d 788, 791-792 [6] [157 P.2d 880].)

Fourth. Does the evidence support the findings?

Yes. It is fundamental that on appeal all conflicts must be resolved in favor of the respondent, and all legitimate and reasonable inferences indulged in to uphold the findings of the trial court if possible. (Brinkmann v. Liberty Mutual etc. Ins. Co., 63 Cal.2d 41, 44 [1] [45 Cal.Rptr. 8, 403 P.2d 136] ; Crawford v. Southern Pac. Co., 3 Cal.2d 427, 429 [1] [45 P.2d 183].)

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Omei Taichi Culture Academy v. Shen CA6
California Court of Appeal, 2025
KPMC v. Chaudhari CA2/3
California Court of Appeal, 2024
Taricco v. Taricco CA2/8
California Court of Appeal, 2023
Mattoo v. 24/7, Inc. CA6
California Court of Appeal, 2015
Johnson v. Diamond Shine, Inc.
890 F. Supp. 2d 763 (W.D. Kentucky, 2012)
MANSOURI v. Superior Court
181 Cal. App. 4th 633 (California Court of Appeal, 2010)
Cochran v. Cochran
56 Cal. App. 4th 1115 (California Court of Appeal, 1997)
Scruton v. Korean Air Lines Co.
39 Cal. App. 4th 1596 (California Court of Appeal, 1995)
Nicholson v. Barab
233 Cal. App. 3d 1671 (California Court of Appeal, 1991)
MCA TELEVISION Ltd. v. American Communications
26 Fla. Supp. 2d 102 (Florida Circuit Courts, 1988)
People v. Brown
166 Cal. App. 3d 1166 (California Court of Appeal, 1985)
Bank of America v. Cory
164 Cal. App. 3d 66 (California Court of Appeal, 1985)
People v. Southern Pacific Co.
139 Cal. App. 3d 627 (California Court of Appeal, 1983)
People v. Pellegrin
78 Cal. App. 3d 913 (California Court of Appeal, 1977)
People v. Superior Court
493 P.2d 1183 (California Supreme Court, 1972)
Sierra Financial Corp. v. Brooks-Farrer Co.
15 Cal. App. 3d 698 (California Court of Appeal, 1971)
Lowy v. United Pacific Insurance
429 P.2d 577 (California Supreme Court, 1967)

Cite This Page — Counsel Stack

Bluebook (online)
65 Cal. 2d 589, 55 Cal. Rptr. 916, Counsel Stack Legal Research, https://law.counselstack.com/opinion/leonard-v-rose-cal-1967.