Lomita Land and Water Co. v. Robinson

97 P. 10, 154 Cal. 36, 1908 Cal. LEXIS 297
CourtCalifornia Supreme Court
DecidedJuly 6, 1908
DocketL.A. No. 2096.
StatusPublished
Cited by73 cases

This text of 97 P. 10 (Lomita Land and Water Co. v. Robinson) 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
Lomita Land and Water Co. v. Robinson, 97 P. 10, 154 Cal. 36, 1908 Cal. LEXIS 297 (Cal. 1908).

Opinion

ANG-ELLOTTI, J.

This is an action brought by a corporation organized under the laws of this state to recover from four of the original subscribers to the stock thereof, certain alleged secret profits realized by them on a sale of a tract of land to such corporation.

There are appeals by different parties from the judgment.' The case comes before us on the judgment-roll alone, and the question presented by all the appeals is as to the sufficiency of the findings to sustain the judgment.

The findings show the facts, so far as material, to be as follows :—

The land involved consists of some seven hundred acres of land in Los Angeles County, valuable both for farming purposes and the purposes of a gun club and duck -preserve. It was held, subject to a mortgage for eighteen thousand dollars, by several persons, of whom Robinson was one. Under these circumstances, Robinson employed defendant Whitlock to find a purchaser therefor without fixing any price.

Sometime prior to July 5, 1903, Whitlock interested defendant Freeman in the matter of the purchase of the property, and induced him to examine the same. At Freeman’s request, defendant Cline examined the property, in company with Freeman and Robinson, and pronounced it suitable to the uses of a gun club as a duck preserve. On July 5, 1903, Freeman paid Robinson five hundred dollars for an option to purchase said property within thirty days. No price was then agreed on, and Robinson gave Freeman a receipt for the money, stating therein that the same was “in payment for an option for 30 days on approximately seven hundred acres of the Rancho La Bolsa Chica, which said option is to be executed by me as soOn hereafter as same can be formally drawn from *40 description to be by me furnished,” and that such five hundred dollars was to be applied on price to be specified therein.

Subsequent to this, Robinson’s associates in the property gave to him a written authorization to sell the property for $27,500 net, dated July 5,1903, stating therein: “You may have thirty days from the 5th inst. to close the sale. It is further understood that you are to deposit in the American National Bank of Long Beach the sum of five hundred dollars for this option, which money will be applied on the purchase price if the sale be accepted, otherwise to be paid to us as a forfeit.” Robinson, upon obtaining this authorization or option, entered into an arrangement with Whitlock that he “would fix the purchase price of the said real property to defendant Freeman at the sum of $33,000, of which Whitlock should receive as his compensation for finding a purchaser, . . . the sum of $3,000, and that defendant Robinson should have and retain the balance of $30,000.” Early in August, 1903, the so-called option of July 5, 1903, given Freeman by Robinson, was in writing extended until August 25, 1903, and it was stated in such writing that the price agreed on was thirty-three thous- and dollars.

In the mean time, Freeman and Cline had commenced and were engaged in efforts to form a corporation to take this property for the purposes of a gun club. It is not found that Robinson knew anything about their plans or efforts in this direction until after he had definitely agreed in writing with Freeman as to the price for which Freeman might purchase the property, or that he had anything whatever to do with the formation of the corporation, other than to become a subscriber for one share therein. At the instance of Freeman, a written instrument in the nature of a subscription agreement was prepared by one Paul W. Schenck, dated July 14, 1903, reading as follows: — -

“Whereas, F. E. Robinson, one of the undersigned, is the owner of an option to purchase a certain portion of the Rancho La Bolsa Chica, in the county of Los Angeles, . . . and comprising between 600 and 700 acres of said Rancho, and,

“Whereas, it is proposed to form a gun club corporation, . . . and by such formation secure for its members the land aforesaid for the sum of $39,500, payable $14,500 cash and the balance in installments extending over Á period of 9 years, therefor,

*41 “The undersigned, each for himself, does hereby subscribe for one share and agree with every and all other subscribers hereto as follows:—

“1st. Within five days hereafter to pay to A. C. Freeman in trust, for the purposes herein set forth, the sum of $500 on each such share as the initial payment thereon. . . .

“This agreement is made contingent upon securing subscriptions for the total 36 shares, and if they be not so secured within 30 days, all money so paid in in trust to be refunded.”

Prior to August 25, 1903, this agreement was signed by thirty-six men for one share each, including each of the defendants, Robinson's name being the thirteenth signed, and Whitlock’s the fourteenth. Prior to July 5, 1903, Robinson had stated to Whitlock that he wanted to be a member of the gun club, and Whitlock signed the name of Robinson to the subscription agreement, assuming that he had authority to do so, and informed Robinson thereof some time prior to August 25th, and Robinson ratified Whitlock’s act. Most of the subscribers were obtained by Freeman and Cline, but Whitlock obtained two, Messrs. Iiickcox and Dotter. Robinson never saw the agreement until after this action was commenced, but on August 25th was informed as to the statement made therein concerning the price at which the property was to be sold to the corporation. None of the persons who signed the subscription agreement, except the defendants and S. Schenek, Paul W. Schenck, George C. Dotter and Ross T. Iiickcox, ever was informed or had any knowledge that either Whit-lock, Freeman, or Cline, or any subscriber “othér than said Robinson,” was to receive any part of the thirty-nine thousand five hundred dollars mentioned in the agreement, or that any subscriber “other than said Robinson” was in any way interested therein other than as a subscriber. All that Dotter and Hickeox knew was that Whitlock had at one time urged them to form a gun club to purchase the property, saying that he had it for sale at a probable price of about thirty thousand dollars or thirty-three thousand dollars, and they supposed when they signed the agreement that he was making some profit out of the matter. The Schencks were partners and confidential business associates of Freeman. No subscribers other than defendants and the Schencks ever were informed or knew the price Robinson was to pay for the property.

*42 On August 25, 1903, by the direction of Freeman, an agreement for tbe sale of the property to the subscribers was executed by Freeman with Paul W. Sehenck, as trustee for the subscribers. The consideration for the sale named therein was $39,500, the property to be taken for $21,500, subject to the $18,000 mortgage, which was assumed by Sehenck as trustee. It was stipulated therein that of the $21,500, $14,500 cash was to be paid on the execution of the agreement, $5,000 one year from date, and $2,000 eighteen months from date, interest at nine per cent to be paid on deferred payments. Thereupon, Freeman paid to Robinson from moneys in his hands received from the subscribers, the sum of $7,000, which with the $500 due from Robinson on the subscription agreement and the $500 theretofore paid by Freeman to Robinson for the option, made a total payment of $8,000.

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Cite This Page — Counsel Stack

Bluebook (online)
97 P. 10, 154 Cal. 36, 1908 Cal. LEXIS 297, Counsel Stack Legal Research, https://law.counselstack.com/opinion/lomita-land-and-water-co-v-robinson-cal-1908.