Palm Springs-La Quinta Development Co. v. Kieberk Corp.

115 P.2d 548, 46 Cal. App. 2d 234, 1941 Cal. App. LEXIS 1386
CourtCalifornia Court of Appeal
DecidedJuly 28, 1941
DocketCiv. 6597
StatusPublished
Cited by13 cases

This text of 115 P.2d 548 (Palm Springs-La Quinta Development Co. v. Kieberk Corp.) 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
Palm Springs-La Quinta Development Co. v. Kieberk Corp., 115 P.2d 548, 46 Cal. App. 2d 234, 1941 Cal. App. LEXIS 1386 (Cal. Ct. App. 1941).

Opinion

THOMPSON, J.

This is an appeal from a judgment rendered in two consolidated cases denying reformation of a contract and awarding the Kiener Corporation damages of $6,500 for conversion of personal property, together with attorneys’ fees in the sum of $7,000.

The first suit sought to reform a contract with relation to the custody and use of 27,000 “lead cards” and cabinets, together with trade information therein contained to be used for procuring sales of real property. The contract is attached to the complaint and marked Exhibit “A”. To that complaint the Kieberk Corporation, which was succeeded by the Kiener Corporation, filed an answer and cross-complaint, seeking possession of the cards, damages for detaining them and counsel fees pursuant to a stipulation contained in the contract.

*236 The second cause of action by the Kieberk Corporation was to replevin the cards and cabinets and for damages for appropriation and loss thereof, together with an application for injunction to prohibit the disposition or use of the cards, and for counsel fees pursuant to the stipulation contained in the contract. Answers and cross-complaints were filed by the interested parties to this proceeding.

The suits were consolidated for trial. The trial of the actions consumed forty-five days. The printed transcript contains 1333 pages of pleadings, proceedings and evidence. The court adopted findings favorable to the Kieberk Corporation in every material respect. Judgment was rendered accordingly, denying reformation of the contract, determining that the Kiener Corporation is the owner and entitled to possession of the lead cards and cabinets, and awarding it damages in the sum of $6,500 for the appropriation and loss of 2,000 of the master cards, together with $7,000 attorneys’ fees. From that judgment this appeal was perfected.

The appellants contend that the findings and judgment are not supported by the evidence; that the court erred in denying reformation of the contract; that the damages awarded for the loss of lead cards is excessive and that the amount allowed as attorneys’ fees is also excessive.

From 1925 to January, 1936, Harry Kiener was engaged in promoting the subdivision and sale of several tracts of real property in Southern California. He resided in Los Angeles. For that purpose he organized successive corporations. The first corporation was called the Kieberk Corporation, of which he was president, manager and sole owner. Subsequently he organized the Kiener Corporation, which became the successor of the Kieberk Corporation, and the owner of all its property and assets. He also organized certain auxiliary corporations which were conducted as recreational clubs to which large numbers of individuals were induced to join with fishing, hunting, swimming and golfing privileges. They were all conducted under the primary management of Mr. Kiener and his organizations. His object in organizing the recreational clubs was to procure prospective purchasers of acreagé and lots of land in the various subdivisions which he was promoting. One of these subdivisions was called the La Quinta Tract near Palm Springs in Riverside County, which was handled by the plaintiff, Palm Springs-La Quinta Development Company, under contract. It sold numerous lots to the *237 customers of the Kiener Corporation by means of the information derived from the card system belonging to the respondent company. These sales were made on installment contracts. In January, 1936, the unpaid installments on those contracts amounted in the aggregate to $350,000. The Palm Springs Company then owed the Kiener Corporation $40,000 as its share of the proceeds of sales.

In the management of the Kiener organizations and in the subdivisions and sales of lots a detailed system of indexed members and prospective purchasers was installed in cabinets, including some 27,000 cards and a similar number of duplicates thereof, with the names, residences, financial standing, prospect of sales and status of contracts of each member. These cabinets were kept in the office of the Kiener Company in the National City Bank Building at Number 508 South Spring Street in Los Angeles.

In January, 1936, Mr. Harry Kiener became ill and contemplated the necessity of retiring from active business. The contract of the Palm Springs-La Quinta Development Company, with respect to the subdivision of land and the sale of lots, together with its realty business, was assigned by it February 1, 1936, to the defendants Louis N. Berkowitz, Walter Hast, Frank Stone and Edward Click for a period of ten years, together with the lease of the office above referred to, in which the filing cabinets and index cards were kept. As a part of that transaction and incident thereto the agreement marked Exhibit “D”, the construction of which furnishes the chief controversy of this litigation, was executed February 14, 1936, by the respective parties to the previously mentioned assignment of contract, and by Harry Kiener, as President of the Kieberk Corporation. The agreement of February 14th recites that the 27,000 original index cards and the cabinets in which they are contained in the office at number 508 of the bank building above referred to are not sold or conveyed to the Palm Springs-La Quinta Development Company, but, on the contrary, that it is permitted to use them and the data therein contained only for the limited purpose and in the manner specifically mentioned in the contract. That agreement then provides that:

“Said lead cards and cabinets may at any time be removed and taken from your office or any other place where such may happen to be by the Kieberk Corporation, with or without *238 demand; further, that you [the Palm Springs Corporation] agree to keep the lead cards and cabinets free from any destruction or improper use or any use other than above stipulated. ”

Finally, the agreement stipulates that the Kieberk Corporation shall be entitled to recover “a reasonable attorney’s fee for services rendered,” together with costs and damages, in any action necessarily maintained with respect to the ownership, title or possession of the index cards and cabinets.

We are entirely satisfied the court did not err in refusing to reform the agreement dated February 14, 1936, with respect to the ownership and use of the index cards and cabinets. The language of that document appears to be too clear and explicit to leave any doubt regarding the intention of the respective parties thereto concerning the ownership, right of possession or use of the so-called lead cards.

While there is a conflict of testimony regarding the ownership and use of the index cards, there is ample evidence in the record to support the findings and judgment that the Kiener Corporation “is the sole and exclusive owner of . . . lead cards, and entitled to the possession thereof, the information thereon set forth, and the cabinets in which the lead cards were contained. ” The very agreement, which was signed by all of the appellants, clearly indicates that fact.

We are unable to say the award of damages in the sum of $6,500 for the destruction or loss of 2,000 master lead cards and the misuse of the index card system contrary to the terms of the agreement of February 14, 1936, is excessive.

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Bluebook (online)
115 P.2d 548, 46 Cal. App. 2d 234, 1941 Cal. App. LEXIS 1386, Counsel Stack Legal Research, https://law.counselstack.com/opinion/palm-springs-la-quinta-development-co-v-kieberk-corp-calctapp-1941.