Potter v. Spaulding

170 P. 1061, 35 Cal. App. 692, 1917 Cal. App. LEXIS 440
CourtCalifornia Court of Appeal
DecidedDecember 28, 1917
DocketCiv. No. 1739.
StatusPublished
Cited by1 cases

This text of 170 P. 1061 (Potter v. Spaulding) 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
Potter v. Spaulding, 170 P. 1061, 35 Cal. App. 692, 1917 Cal. App. LEXIS 440 (Cal. Ct. App. 1917).

Opinion

CHIPMAN, P. J.

This action grows out of two separate contracts entered into by plaintiff and by Henry C. Spaulding, defendant, and W. R. Pigg. The action was essentially on the equity side of the court and was tried by the court without a jury. Defendant United States Land Company appeals from the judgment herein on bill of exceptions. In the same action, the transcript of which is entitled Sacramento No. 2423, Civil No. 1728, Potter v. Pigg, post, p. 707, [170 Pac. 1066], the plaintiff Potter appeals from the judgment a,nd from certain orders made after final judgment. This latter appeal will be treated in a separate opinion.

The first of the contracts above referred to was entered into on December 8,1911, by which plaintiff, the party of the first part, .agreed to sell to said Pigg and Spaulding, the parties of the second part, certain land in said agreement described *693 in consideration of certain payments to be made to plaintiff and certain covenants therein set forth to be performed by said Pigg and Spaulding, the money payments to be as follows: “$1000.00 which has been deposited by the parties of the second part in the Citizens Bank at Visalia, California, to the credit of the party of the first part and which is to be paid over to the party of the first part as hereinabove provided”; $26,125 to be paid on delivery of the deed mentioned in the agreement, and balance, twenty thousand dollars, on or before one year from the date of the agreement, to be secured by mortgage on the said land. It was provided by the agreement that first party should furnish to second parties, by delivering the same to the Citizens’ Bank of Visalia, a complete abstract of title to said land as soon as practicable, second parties to have thirty days from the receipt of the abstract within which to examine the same and point out any defects therein, which latter, when pointed out, first party agreed to cure “as soon as practicable thereafter”; second parties agreed to accept the property within thirty days from delivery of abstract if title was clear and merchantable, “but if not so free, as soon thereafter as said clouds are removed and said defects cured by said first party”; unless the second parties should specify defects in the title within thirty days after receipt of the abstract by said bank, “title to said property should be deemed to have been accepted by them”; on the receipt of one thousand dollars deposited with said Citizens’ Bank of Visalia, and the further sum of $26,125 and the execution of the mortgage referred to securing the payment of twenty thousand dollars, first party was concurrently therewith to execute and deliver to second parties a good and sufficient deed to all the said land, “free and clear of liens and encumbrances of every kind and character”; all acts and things to be performed by the parties to the agreement “shall be done with the utmost practicable expedition”; in ease of default on the part of second parties in any of the terms of the agreement, it was provided that the bank should forthwith pay to first party the said sum of one thousand dollars, “the same being the consideration moving to him for entering into this agreement.” It was further provided that certain personal property described in the agreement, now on the land, “shall pass and be conveyed by the party of the first part to the parties of the second part by *694 separate bill of sale and without any additional consideration at the time he grants and conveys said land to said parties of the second part.”

On January 15, 1912, the parties to the original contract entered into a supplemental agreement in which it was recited that the first party had furnished second parties abstracts of title showing certain defects therein as pointed out by second parties, and in consideration thereof and the covenants in said supplemental contract contained it was further agreed that Power & McFadzean, attorneys at law, should proceed at once to cure any defects in the title to said property and put the same in merchantable condition at the expense of first party; that second parties shall advance to first party eleven thousand dollars, to be used by him to procure from one Ed. Mort a release of all his claims upon said land and the personal property thereon referred to in the contract of December 8, 1911, “which said sum of eleven thousand dollars shall be credited to said parties of the second part as a payment on the purchase price of said land”; first party was to give second parties immediate possession of the land and personal property; should first party be unable to cure the title to said property within a reasonable time, “he shall repay said parties of the second part said sum of eleven thousand dollars by causing to be conveyed to them 220 acres of land to be selected by them from any portion of the land hereinbefore mentioned and specifically .described in said agreement of December 8, 1911, together with said personal property.” Neither the deed nor the mortgage mentioned in the original contract to be delivered until title to the land was put in good and'merchantable condition, and interest on the balance over and above said eleven thousand dollars was not to commence until said title is in a merchantable condition and said deed and mortgage delivered as aforesaid. Said eleven thousand dollars was to be applied upon the purchase price of said land, and it was provided that this supplemental agreement of January 15th was to be a supplement to the agreement of December 8, 1911, which latter “shall remain in full force and effect as modified by this supplemental agreement.”

On February 7, 1912, as found by the court, Pigg and Spaulding assigned and transferred all their right to and interest in the aforesaid contracts and to all said personal *695 property to defendant, United States Land- Company, of which defendant Spaulding was president and general manager. By the terms of the assignment, the assignee expressly assumed the burdens and obligations of said contracts, and thereafter Pigg and Spaulding ceased to have any interest therein. The action was dismissed as to Pigg, and Spaulding in his answer disclaimed any interest in said contracts. The plaintiff alleged full performance of each and all of the covenants set forth in the said contracts to be by him performed and the failure of defendants to keep or perform the covenants undertaken by them to be performed. Defendant United States Land Company answered, alleging full performance of the covenants of said contracts upon the part of Pigg and Spaulding agreed by them to be performed and on its own part as assignee of the interest of said Pigg and Spaulding. It also filed a cross-complaint seeking certain relief.

The court made the following findings of fact and conclusions of law:

(1) That plaintiff is not the owner in fee of the property described in the complaint, but is the owner in fee of an undivided three-fourths thereof, and Epsie G. Potter is the owner in fee of the other undivided one-fourth of said property. That their said ownership in fee is subject to the following easements, to wit: 1. A right of way of a certain named railway company, “which right of way did not constitute an objection or defect in the title because excepted by the contract.” 2. A right of way for a pipe-line and telephone line of the Standard Oil Company. 3. A right of way to the San Joaquin Light and Power Company for an electric pole line. 4.

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Related

Potter v. Pigg
170 P. 1066 (California Court of Appeal, 1917)

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Bluebook (online)
170 P. 1061, 35 Cal. App. 692, 1917 Cal. App. LEXIS 440, Counsel Stack Legal Research, https://law.counselstack.com/opinion/potter-v-spaulding-calctapp-1917.