NMSBPCSLDHB v. County of Fresno

61 Cal. Rptr. 3d 425, 152 Cal. App. 4th 954, 2007 Cal. App. LEXIS 1048
CourtCalifornia Court of Appeal
DecidedJune 26, 2007
DocketF050094
StatusPublished
Cited by25 cases

This text of 61 Cal. Rptr. 3d 425 (NMSBPCSLDHB v. County of Fresno) 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
NMSBPCSLDHB v. County of Fresno, 61 Cal. Rptr. 3d 425, 152 Cal. App. 4th 954, 2007 Cal. App. LEXIS 1048 (Cal. Ct. App. 2007).

Opinion

Opinion

CORNELL, J.

Nmsbpcsldhb (NMS) contracted with the County of Fresno (the County) to sell a parcel of unimproved land to the County. NMS sued the County for breach of contract and rescission. The trial court dismissed the claim for breach of contract and denied NMS’s demand for a jury on the claim for rescission. The trial court then found that NMS had no valid ground for rescission of the contract.

The only issue raised by NMS here is whether the trial court erred in striking its jury demand. If NMS is correct, we would reverse the judgment, regardless of whether the trial court’s ruling on the merits of the rescission claim was or was not correct. As we shall explain, however, we agree with the trial court that the gist of NMS’s rescission action was equitable rather than legal, and that NMS was not entitled to a jury trial. This is so because of our holding that a rescission action is an action in equity and not an action at law when the recovery sought by plaintiff (here, a money judgment) consists entirely of something other than the consideration paid by plaintiff (here, land). We will therefore affirm the judgment.

*957 FACTUAL AND PROCEDURAL SUMMARY

NMS’s first amended complaint contained causes of action for rescission, breach of contract and injunctive relief. The pleading alleged that on September 11, 2001, NMS, as seller, and the County, as buyer, entered into a contract pursuant to which NMS sold to the County a three-acre parcel of unimproved land (the Property) for a price “not to exceed $651,900.00.” The County intended to build the Woodward Park Library (the Library) on the site.

Under the terms of the contract, “NMS’s obligations to perform . . . were conditioned upon the County’s fulfillment of its promise to ensure the architectural compatibility between the Woodward Park Library . . . , which the County intends to build on the Property, and NMS’s development adjacent to the Property, so that the Library would maintain architectural continuity with the adjacent property, which was being developed by NMS.” The County “knew its Agreement to construct a Library that was architecturally compatible to NMS’s adjacent development was a material term of the Agreement and at no time prior to the execution of the Agreement did the County object to the architecture of NMS’s adjacent development nor indicate to NMS that it intended to construct a Library that was not architecturally compatible with NMS’s adjacent development.”

In May of 2002 the County’s board of supervisors approved a design for the Library that was “wholly incompatible with the architecture of NMS’s adjacent development.” NMS alleged that the County’s failure to provide for a library design architecturally compatible with NMS’s adjacent development was a material failure of consideration, entitling NMS to rescind the contract. (See Civ. Code, § 1689, subd. (b)(2).) 1 NMS further alleged that the County “made representations to NMS that, if NMS sold the County the Property, it would build a Library architecturally compatible with NMS’s development of land adjacent to the Property,” that the County’s representations “were false,” and that these false representations entitled NMS to rescind the contract. (See id., subd. (b)(1).)

About three months before trial, NMS dismissed its request for injunctive relief, which had sought to stop construction of the Library with the design approved by the County. Apparently, by this time the Library already had been built.

At the outset of the trial, the court disposed of NMS’s breach of contract cause of action by way of an in limine ruling, which is not contested in this *958 appeal. The trial court then ruled that the only remaining portion of NMS’s case, its cause of action for rescission, was equitable rather than legal and struck NMS’s jury demand. Notably, NMS was not seeking a return of the Property and apparently made no offer to return to the County the money NMS had received for the land it had conveyed to the County. Rather, NMS sought a measure of monetary recovery representing profit it contended it would have made if it had kept the Property, constructed an office building on it, rented out the commercial property for 30 years, and then sold the Property. Its expert witness at trial estimated this amount to be $9.79 million.

At the conclusion of the court trial, the court found “[t]he evidence establishes that the Library design is architecturally compatible with plaintiff’s adjacent project.” The court found that there was no ground for rescission of the contract because “[t]here was no failure of consideration nor did defendant commit fraud against plaintiff. (CC § 1689(b)(l)(2).)”

DISCUSSION

The Right to a Jury Trial

Article 1, section 16 of the California Constitution provides in pertinent part that “[t]rial by jury is an inviolate right and shall be secured to all, but in a civil cause three-fourths of the jury may render a verdict.” In spite of the expansive language of this constitutional provision, case law has long held that not all litigants are entitled to a jury trial. “[T]he right so guaranteed ... is the right as it existed at common law in 1850, when the Constitution was first adopted, ‘and what that right is, is a purely historical question, a fact which is to be ascertained like any other social, political or legal fact.’ [Citations.]” (C & K Engineering Contractors v. Amber Steel Co. (1978) 23 Cal.3d 1, 8 [151 Cal.Rptr. 323, 587 P.2d 1136] (C & K Engineering); accord, People v. One 1941 Chevrolet Coupe (1951) 37 Cal.2d 283, 286-287 [231 P.2d 832].) “As a general proposition, ‘[T]he jury trial is a matter of right in a civil action at law, but not in equity.’ [Citations.]” (C & K Engineering, at p. 8; accord, Abbott v. City of Los Angeles (1958) 50 Cal.2d 438, 462 [326 P.2d 484]; Southern Pac. Transportation Co. v. Superior Court (1976) 58 Cal.App.3d 433, 436 [129 Cal.Rptr. 912].)

The C & K Engineering case explained the difference between an action at law and an action in equity as follows: “As we stated in People v. One 1941 Chevrolet Coupe, supra, 37 Cal.2d 283, ‘ “If the action has to deal with ordinary common-law rights cognizable in courts of law, it is to that extent an action at law. In determining whether the action was one triable by *959 a jury at common law, the court is not bound by the form of the action but rather by the nature of the rights involved and the facts of the particular case—the gist of the action. A jury trial must be granted where the gist

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Cite This Page — Counsel Stack

Bluebook (online)
61 Cal. Rptr. 3d 425, 152 Cal. App. 4th 954, 2007 Cal. App. LEXIS 1048, Counsel Stack Legal Research, https://law.counselstack.com/opinion/nmsbpcsldhb-v-county-of-fresno-calctapp-2007.