Newton v. S. A. Gerrard Co.

34 P.2d 797, 139 Cal. App. 737, 1934 Cal. App. LEXIS 641
CourtCalifornia Court of Appeal
DecidedJuly 17, 1934
DocketCiv. No. 4977
StatusPublished

This text of 34 P.2d 797 (Newton v. S. A. Gerrard Co.) is published on Counsel Stack Legal Research, covering California Court of Appeal primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Newton v. S. A. Gerrard Co., 34 P.2d 797, 139 Cal. App. 737, 1934 Cal. App. LEXIS 641 (Cal. Ct. App. 1934).

Opinion

THOMPSON, J.

In this action for money had and received judgment was rendered jointly against The S. A. Gerrard Company and Tom M. Watanuki. From this judgment the company only has appealed. A motion for nonsuit was granted with respect to the defendant H. M. Young.

The appellant, a fruit marketing company, concedes that the money which is involved in this suit was received by it from the proceeds of the sale of a grape crop produced from the vineyard of plaintiffs in 1931 while it was under lease to the defendant Watanuki and that the money belongs to plaintiffs as rental for the premises unless the marketing company, as plaintiffs’ factor for the purpose of selling the grapes, was entitled to apply the funds under the provisions of section 3053 of the Civil Code to the satisfaction of a debt of plaintiffs alleged to have been incurred on account of money advanced by appellant for cultivating, harvesting and marketing a crop of grapes from the same premises in 1930 while the vineyard was leased to Young. The respondents assert that the title to the crop of grapes for the year 1930 vested in Young as the lessee of the premises; that the appellant was not their factor and that no indebtedness was incurred against them on account of money advanced by the appellant to Young for cultivating, harvesting or marketing his crop of grapes.

The record contains a conflict of evidence, but the following statement of facts is adequately supported: The appellant is a fruit marketing corporation organized under the laws of Ohio and authorized to conduct its business in the state of California. The defendant IT. M. Young was a representative of the corporation in the county of San [739]*739Joaquin. The plaintiffs are husband and wife. They own a seventy-acre vineyard near Woodbridge. In November, 1929, they executed a written lease of this property to H. M. Young for the ensuing season in consideration of the payment of $2,000 cash rental due prior to October 25, 1930, and, in addition thereto, one-half of the remaining profit derived from the sale of the crop of grapes after deducting therefrom the agreed cost of cultivating, harvesting and marketing the crop in the sum of $2,000. It was specified that the balance of the rental in excess of the original $2,000 payment should be made “as soon as all returns are received”. The lessee Young immediately took possession of the land and cultivated and harvested the crop of grapes. The plaintiffs had nothing to do with the producing or marketing of the crop. The crop of grapes was marketed by the appellant pursuant to the terms of the lease, which provided in that regard:

“It is mutually agreed that the crop from the above vineyard shall be marketed with The S. A. Gerrard Co., in the name of C. L. Newton, and that the parties hereto do hereby authorize The S. A. Gerrard Co. to make the payments and divisions as above mentioned.”

This lease was prepared by Young, who made all arrangements with the appellant for the money which it advanced for the cultivation and harvesting of the crop. Young paid the plaintiffs the specified sum of $2,000 on account of rent. The crop was sold by the appellant at a loss of $3,684.52. Without plaintiff’s knowledge or consent the appellant charged the “Newton Vineyard” with a deficit of $1842.26.

In January, 1931, Young, who was still employed with the appellant corporation, notified plaintiffs he would not renew the lease for another season, but did procure another lessee in the person of the defendant Tom M. Watanuki, with whom the plaintiffs subsequently executed another written lease of the same premises for the season of 1931 in substantially the same language which was employed in the Young lease, except that the final clause of the Watanuki lease, which authorized the appellant to market the crop of grapes, contained'this language:

“It is further agre’ed that the party of the second part will perform all work on the place in the manner specified and directed by The S. A. Gerrard Co.”

[740]*740At - the time tbe Watanuki lease was executed, without further consideration, the following written agreement was signed by C. L. Newton and Id. M. Young:

“It is agreed that lease, for 1930, between C. L. Newton and H. M. Young, shall be modified as follows: Wherein it is agreed in lease that a certain division of returns shall be made at the end of 1930 season, same is hereby modified, so the division shall be made at the end of the 1931 season, as far as C. L. Newton part is concerned; but that H. M. Young will settle his part in cash; and that the new lease shall run between C. L. Newton and Tom M. Watanuki.
“Signed this 20th day of January, 1931.
“(Signed) C. L. Newton “(Signed) H. M. Young.”

All of these instruments were prepared by Young, whose apparent motive in securing the leases was to obtain business for the appellant in marketing the crops of grapes. The crop of 1931 was marketed by the appellant for a net profit of $3,725.10, after paying plaintiffs the specified sum of $2,000 and all costs of cultivation and harvesting. The balance of the proceeds of the sale of the crop of 1931 was credited to the alleged indebtedness of the plaintiffs which had been charged to them by appellant without their knowledge or consent on account of the money which had been advanced to Young in the previous year for cultivating and harvesting his crop of grapes.

The plaintiffs brought this suit against both lessees and the marketing company for money had and received. The case was tried by the court sitting without a jury. Upon motion the cause was dismissed against IT. M. Young. Findings were adopted favorable to the plaintiff on all the material issues. A judgment for $1127.82 was accordingly rendered jointly against the appellant and Tom M. Watanuki. The marketing corporation only has appealed. The problems which are involved on this appeal must be determined by a construction of the language of the Young lease and the written memorandum which was signed by Newton and Young January 20, 1931.

By the terms of the lease from plaintiffs to Young, the title to the grape crop which was produced on the demised premises in the year 1930 passed to the lessee who had the exclusive right to harvest and market the fruit. [741]*741(Vallejo & Northern R. R. Co. v. Reed Orchard Co., 32 Cal. App. 347 [162 Pac. 914]; 15 Cal. Jur. 671, sec. 80; sec. 1926, Civ. Code.) Since, by virtue of the lease, the title to the grape crop for the year 1930 belonged exclusively to Young, the plaintiffs owned no interest therein which they could authorize the fruit marketing corporation to sell for them as their factor. Section 2026 of the Civil Code defines the term factor as “an agent who, in the pursuit of an independent calling, is employed by another to sell property for him, and is vested by the latter with the possession or control of the property, or authorized to receive payment therefor from the purchaser”. No title to the crop of grapes was reserved in the lessors by the terms of the lease. The plaintiffs merely agreed that the fruit might “be marketed with The S. A. Gerrard Co., in the name of C. L. Newton”. After the execution of that lease the plaintiffs had no property rights in the crop of grapes which they could authorize the appellant to sell for them, and they had no right of possession of that crop with which they could vest the appellant.

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Related

Vallejo & Northern Railroad v. Reed Orchard Co.
162 P. 914 (California Court of Appeal, 1916)

Cite This Page — Counsel Stack

Bluebook (online)
34 P.2d 797, 139 Cal. App. 737, 1934 Cal. App. LEXIS 641, Counsel Stack Legal Research, https://law.counselstack.com/opinion/newton-v-s-a-gerrard-co-calctapp-1934.