Mazzera v. Wolf

183 P.2d 649, 30 Cal. 2d 531, 1947 Cal. LEXIS 189
CourtCalifornia Supreme Court
DecidedAugust 19, 1947
DocketSac. 5776
StatusPublished
Cited by22 cases

This text of 183 P.2d 649 (Mazzera v. Wolf) 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
Mazzera v. Wolf, 183 P.2d 649, 30 Cal. 2d 531, 1947 Cal. LEXIS 189 (Cal. 1947).

Opinions

[533]*533GIBSON, C. J.

Plaintiff has appealed from a judgment , decreeing that defendants are the owners of a vacant lot, 50 feet in width, which lies between two pieces of property separately owned by the respective parties.

The complaint alleged that plaintiff and defendants orally agreed that defendants, who are husband and wife, were to purchase the lot for the mutual benefit of the parties and to convey an undivided one-half interest to plaintiff upon payment of one-half of the costs, and that defendants purchased the lot but refused to accept plaintiff’s tender of half the costs or to make a conveyance. A second count was in the usual form of a quiet title action. Plaintiff asked that a trust be decreed as to the one-half interest and that he be adjudged the owner thereof.

Defendant Ed Wolf testified that he met plaintiff Mazzera on the lot in April, 1944. They had not become acquainted until shortly before this date, and they had not had any prior business transactions, except that Wolf, who was renting the lot, permitted Mazzera to use a portion of it for storing materials at a monthly rental of $10. Mazzera asked Wolf why he did not buy the lot, to which he replied that the owners wanted too much for it. Mazzera then said, “Buy it for $2,500.00, but don’t pay any more than $2,500.00, and then we will go fifty-fifty,”. Wolf answered, “All right.” However, nothing was done about purchasing the lot until sometime in October, when Wolf received a letter from one of the owners asking him to make an offer for the lot. He offered $2,500, which was refused, and various other offers and counteroffers were made. Finally, during the latter part of November, an agreement was made with the owners for a sale at $4,500, but the deeds to Wolf and his wife were not executed and delivered until February. The agreed purchase price was paid by Wolf from community funds, and no part thereof was furnished by Mazzera. There was no further conversation between Mazzera and Wolf after the one that took place in April until Mazzera learned sometime in November that Wolf had arranged to buy the lot. Mazzera then asked Wolf if the purchase was to be “fifty-fifty.” Wolf replied it was not, saying; “I paid $4,500.00 which was not the $2,500.00 that I said yes to.” Mazzera did not then offer to pay half the price, but knowing that Wolf had made no deposit, Mazzera said he was going to call the owners and “raise the ante.” Wolf told him to “go ahead.”

[534]*534Mazzera’s version of the April conversation differed from that of Wolf in several particulars. He testified that Wolf said he was negotiating to buy the lot, and he understood that Mazzera was also trying to buy it. Mazzera replied that he was interested but the owners wanted too much for it. He then said to Wolf: “There is no need for you and I cutting each other’s throat in bidding for this property. . . . Why don’t we buy it together in partnership; I will take an undivided half and you take an undivided half. . . . That way we won’t be bidding against each other.” Wolf said “okay” but to let him do the bidding and buy it in his own name. Mazzera agreed and instructed Wolf to start the bidding at $2,500. He also told Wolf that his tenant, Dye, could use the south 25 feet of the lot and Wolf could use the remaining 25 feet. There was a conflict in the testimony as to when the parties became acquainted, whether Dye was present at this conversation, whether the parties again discussed the lot before Wolf bought it, and whether Mazzera offered to pay half the cost upon learning of the purchase. There is also testimony that Wolf subsequently told Dye that they were “just talking and kidding” at the time of the April conversation.

The court found as follows: Neither of the parties had any interest in or business connection with the operations conducted on the property of the other. In April, 1944, they met casually on the lot and in the course of a general conversation Mazzera proposed that Wolf endeavor to purchase the lot, taking title in his own name, and that they would then go fifty-fifty in the property, each taking an undivided one-half interest. To this proposal Wolf assented, but he took no steps toward purchasing the property until one of the owners wrote him in October urging him to make an offer for the lot. An offer of $2,500 was made and refused, and various other offers and counteroffers were made. Finally, a sale was agreed at a price of $4,500, and the agreed purchase price was paid by Wolf and his wife from their own funds. No part of the price was furnished by Mazzera, although he offered to pay one-half of the expenditures and made a deposit in court. Wolf refused to accept any money or to make a conveyance.

The trial court concluded that Wolf and his wife were the owners of the lot, that the April conversation did not create an enforceable contract, and that the agreement was barred by the statute of frauds (Civ. Code, § 1624, subd. 4, and Code [535]*535Civ. Proc., § 1973, subd. 4). It also concluded that no partnership existed between the parties before or at the time of that conversation and none was formed by reason of that conversation or by their subsequent conduct, that no trust was created in the property by the oral conversation or by the conduct of the parties, and that Wolf and his wife were entitled to have their title quieted as against Mazzera’s claims.

Mazzera seeks to avoid the bar of the statute of frauds by contending that the oral agreement had the effect of making the parties partners in the enterprise of buying and holding the lot, and that the existence of the partnership relationship placed the parties in a confidential relation and made Wolf a trustee of a constructive trust with respect to his purchase of the lot. He further contends that Wolf’s refusal to perform the agreement was a violation of his trust duties, and that such an oral agreement is not required to be in writing.

A constructive trust may be imposed when a party has acquired property to which he is not justly entitled, if it was obtained by actual fraud, mistake or the like, or by constructive fraud through the violation of some fiduciary or confidential relationship. (Crosby v. Clark, 132 Cal. 1 [63 P. 1022] ; Crabtree v. Potter, 150 Cal. 710 [89 P. 971]; Koyer v. Willmon, 150 Cal. 785 [90 P. 135]; Johnson v. Clark, 7 Cal.2d 529 [61 P.2d 767].) Such a trust, imposed upon a partner, agent, or other fiduciary, arises by operation of law, and, accordingly, the statute of frauds is no bar. (Civ. Code, § 852; Stromerson v. Averill, 22 Cal.2d 808, 815 [141 P.2d 732]; Bastjan v. Bastjan, 215 Cal. 662, 670 [12 P.2d 627].) But the mere failure to perform an oral promise to convey real property is not itself fraud, and the agreement will be held unenforceable under the statute of frauds in the absence of actual or constructive fraud. (Rheingans v. Smith, 161 Cal. 362, 366 [119 P. 494, Ann.Cas. 1913B 1140]; Feeney v. Howard, 79 Cal. 525, 529 [21 P. 984, 12 Am.St.Rep. 162, 4 L.R.A. 826]; Ampuero v. Luce, 68 Cal.App.2d 811, 817 [157 P.2d 899] ; Bradley v. Duty, 73 Cal.App.2d 522, 525 [166 P.2d 914].)

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Mazzera v. Wolf
183 P.2d 649 (California Supreme Court, 1947)

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Bluebook (online)
183 P.2d 649, 30 Cal. 2d 531, 1947 Cal. LEXIS 189, Counsel Stack Legal Research, https://law.counselstack.com/opinion/mazzera-v-wolf-cal-1947.