Merrill v. Gordon & Harrison

279 P. 996, 208 Cal. 1, 1929 Cal. LEXIS 341
CourtCalifornia Supreme Court
DecidedAugust 16, 1929
DocketDocket No. L.A. 10020.
StatusPublished
Cited by11 cases

This text of 279 P. 996 (Merrill v. Gordon & Harrison) 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
Merrill v. Gordon & Harrison, 279 P. 996, 208 Cal. 1, 1929 Cal. LEXIS 341 (Cal. 1929).

Opinion

CURTIS, J.

This action is for an accounting and for one-fourth of the net profits and income derived from the operation and development of certain real property and sale and distribution of oil and gas produced therefrom, and for specific performance of a contract to convey to plaintiff a one-fourth interest in said real property. Said action is predicated upon the following contract executed by the parties hereto:

“Oct. 7, 1921.
“Contract.
“Witnesseth:—That, for a valuable consideration receipt of which is hereby acknowledged, Gordon & Harrison, hereinafter designated as parties of the first part, doing business at 155 East Jefferson Street, Los Angeles, Cal., enter into the following contract with J. A. Merrill, hereinafter designated as party of the second part, to-wit:
“That the party of the first part agrees to compensate the party of the second part for the location of a certain piece of gravel land which the party of the first part purchased from Abel Moynier and Wife, to-wit:
“That as compensation, as above mentioned, party of the second part is to receive twenty-five per cent (25%) of the *3 capitalized stock for which said party of the second is to pay for out of the net profits of the concern in a period of two years.
“That when party of the second pays party of the first one-fourth of the purchase price of the land and equipment the rate of 7% interest on deferred payments, he will then become one-fourth owner of said land and is to derive one-fourth profits from said land from any material produced therefrom per right as owner of 25% of capital stock.
“Witness to which we hereby set our hand and our seal this seventh day of October nineteen hundred twenty and one, A. D.
"Gordon & Harrison
“By Geo. W. Harrison
“Party of the first part.
“J. A. Merrill
“Party of the second part.”

It will be noticed that the only description of the real property contained in said written agreement is “a certain piece of gravel land which the party of the first part purchased from Abel Moynier and Wife, to-wit.” The evidence shows that Gordon & Harrison, the defendants herein, designated in said agreement as “the parties of the first part,” had on or about the twenty-fourth day of September, 1921, purchased from Abel Moynier and Jerondine Moynier, his wife, lot seven of Moynier’s tract in the county of Los Angeles containing 17.76 acres of land, upon which there was located a deposit of sand and gravel. Parol evidence was admitted by the trial court for the purpose of identifying the property, which was the subject of the contract of date October 7, 1921. The plaintiff contended, and so testified, that the real property referred to and described in said contract was the whole of said lot seven of the Moynier tract, while the defendants contended that only the easterly five acres of said lot was the subject of their contract with the plaintiff. The plaintiff, who was a cement contractor, testified that some time before the contract was entered into between Gordon & Harrison and himself he located a deposit of sand and gravel upon said lot seven of the Moynier tract and immediately thereafter secured an option from Moynier and wife to purchase the same. He mentioned these matters to Gordon & Harrison, and, as a result of negotiations there *4 after had, Gordon & Harrison purchased from Moynier and wife said lot seven of the Moynier tract, and to compensate plaintiff for his services for locating said sand and gravel deposit, they entered into the contract of October 7, 1921, and that the tract of land referred to in said contract was the whole of said lot seven. On the other hand, the defendants contended, and there was substantial evidence to support their contention, that the only portion of said lot seven containing any sand or gravel deposit was the easterly five acres thereof; that at the time they began negotiations with Moynier and wife, which resulted in the purchase by them of said lot seven, they ascertained that the sand and gravel deppsit was upon the easterly five acres of said lot, and that they endeavored to purchase from Moynier and wife said easterly five acres for the purpose of establishing thereon a sand and gravel plant, but Moynier and wife refused to sell any part of said lot less than the whole thereof; that thereupon they purchased the whole of said lot, principally for the purpose of acquiring said easterly five acres, and to compensate the plaintiff for ■ locating said sand and gravel deposit they gave to the plaintiff the contract of October 7, 1921, and that the tract of land intended by the parties thereto to be described therein was the said easterly five acres of lot seven of the Moynier tract. The identity of the real property sought to be described in said contract became important for the reason that after the date of said contract Gordon & Harrison constructed a rock and gravel plant upon said easterly five acres of said lot seven and operated the same until the latter part of the following August. The project proved a failure, and soon thereafter the plant was dismantled and the equipment and machinery removed therefrom. The plaintiff was placed in charge of said plant as superintendent thereof, and continued in that capacity until May 13, 1922, when he was discharged. Something over a year and a half after the abandonment of the sand and gravel project upon said lot seven, to be exact, on April 9, 1924, Gordon & Harrison leased said lot seven to certain parties for the purpose of prospecting, exploring, drilling and removing oil and gas therefrom. As a result of these explorations and developments oil was discovered upon said lot seven, but not upon any part of the easterly five acres thereof. Plaintiff now claims that he is entitled under his *5 contract with, defendants to one-fourth of the net proceeds of all oil and gas produced from said lot, and for an accounting, etc. The trial court found that the property intended by the parties thereto to be described in said contract of October 7, 1921, was the easterly five acres of said lot seven and that no profits, net or otherwise, had ever been realized from said property.

The plaintiff has appealed and presents a number of assignments of error for our consideration and determination. One of said assignments is the insufficiency of the evidence to support the findings, and particularly the finding of the court that the real property intended to be described by the parties in the contract of October 7, 1921, was only the easterly five acres and not the whole of said lot seven. We have set forth in a general way the evidence upon the question of the identity of the real property which was the subject of said contract. We deem comment thereon unnecessary. It is apparent there was a sharp conflict in the evidence as to the property which the parties intended to describe in said contract. Such evidence would undoubtedly have supported a finding in favor of either party.

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Cite This Page — Counsel Stack

Bluebook (online)
279 P. 996, 208 Cal. 1, 1929 Cal. LEXIS 341, Counsel Stack Legal Research, https://law.counselstack.com/opinion/merrill-v-gordon-harrison-cal-1929.