Redondo Beach School District v. Flodine

314 P.2d 581, 153 Cal. App. 2d 437, 1957 Cal. App. LEXIS 1512
CourtCalifornia Court of Appeal
DecidedAugust 23, 1957
DocketCiv. 22342
StatusPublished
Cited by12 cases

This text of 314 P.2d 581 (Redondo Beach School District v. Flodine) 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
Redondo Beach School District v. Flodine, 314 P.2d 581, 153 Cal. App. 2d 437, 1957 Cal. App. LEXIS 1512 (Cal. Ct. App. 1957).

Opinion

*439 FOURT, J.

This is an appeal by defendant B & A Investment Co., Inc., from an interlocutory judgment in a condemnation action. The plaintiff school district commenced the action on March 15, 1956, for the purpose of acquiring the property in question for an elementary school.

From the evidence, and by the way of background, it is fair to state that Ida C. Flodine and Eric Flodine were husband and wife and the owners, as joint tenants, of a parcel of real property, irregularly shaped, known as Lot 1, Block 8 of Tract 11336, as per a recorded map, and containing about 3.20 acres, located at or near the southwest corner of Manhattan Beach Boulevard and Inglewood Avenue, in the city of Redondo Beach. Eric Flodine died November 28, 1952, and the property in question was listed as an asset in his estate.

On July 30, 1954, Ida C. Flodine, as the seller, and B & A Investment Co., Inc., a corporation, as the buyer, executed certain escrow instructions wherein appellant was to put up $500, and agreed to deposit “the further sum of $19,500.00, plus funds to cover my buyers charges and prorations, when the conditions of this Escrow are met and prior to its closing.” The property involved in that escrow consisted of the entire Lot 1, Block 8 of Tract Number 11336, as per a designated map. It was also set forth, under the buyer’s section of the escrow, that the purchase of the property was subject to the buyer procuring a rezoning of a part of the property, and subject to the buyer getting suitable financing. Further it was provided that separate and apart from all other provisions of the escrow, the buyer would have the privilege to acquire a separate deed, during the period of the escrow, to a parcel 150 feet by 150 feet of the larger, or entire lot, which amounts to about .52 acres, at the corner, upon paying $20,000 through the escrow, which amount would be deducted from the entire purchase price, leaving a balance of $45,000 due for the remainder of the lot. The $45,000 was to be paid through a system of notes, secured by second trust deeds on the property.

On August 20, 1954, Ida Flodine, individually, and as the executrix of the estate of Eric Flodine, deceased, as the owner, entered into an agreement with B & A Investment Company, Inc., for the sale and purchase of the entire parcel of land known as Lot 1, Block 8 of Tract Number 11336. The agreement set forth that it did not cancel the escrow instructions heretofore referred to, but that it was intended to *440 clarify the instructions, and if there was any conflict between the escrow instructions and the agreement, that the agreement was to prevail. The agreement provided, among other things, that the appellant would pay the sum of $65,000, for the entire property, payable $20,000 cash and $45,000 by the execution of promissory notes secured by trust deeds upon the property, second and subject to a first trust deed for a construction loan which appellant proposed to obtain for the purposes of financing its proposed construction work on the property.

It appears in the agreement of purchase and sale just mentioned that “Erie Plodine in his lifetime entered into an agreement in writing with the City of Redondo Beach, California under the terms of which certain improvements consisting principally of the laying of sidewalks and curbing around said property were to be done by said Eric Plodine” and that Ida Plodine was “now obligated to said City for the doing of said work, or paying for the same.” The appellant, by the agreement of sale and purchase, agreed to make the improvements required by the city, or such substitute improvements as might be satisfactory to the city. It was also provided that an escrow would be opened and that during the escrow period the appellant would have the right to acquire a separate deed to the parcel 150 feet by 150 feet, on the corner of the larger parcel, on the condition that $20,000 be paid to the seller through escrow, which $20,000 was to be deducted from the total purchase price of $65,000, leaving a balance of $45,000 for the purchase price for the remainder of the property. The appellant was to proceed with a subdivision of the premises. The seller was to take ' appropriate steps to procure court approval of the agreement, or to close the probate proceedings in her husband’s estate. The appellant was to be given ninety days to arrange financing and “that if he fails to procure the necessary financing within said time, either Party may, at their election, cancel this agreement and terminate the escrow.” And, further it was provided, “Neither this agreement, nor the escrow instructions to which it refers, may be regarded as an option, but is in effect an actual sale subject only to the failure of Second Party to procure, after diligent effort, from the City of Redondo Beach, favorable action with regard to the proposed subdivision and the zone changes herein referred to, or the financing herein referred to.”

On January 24, 1955, two new escrows were set up by *441 Ida Flodine, individually, and as executrix of the estate of Eric Flodine, deceased, as the seller, and appellant, as the buyer. In each of such new escrows it was provided that the signing of “these Escrow Instructions by the buyer and seller will cancel and supersede . . . Escrow Instructions as dated July 30, 1954.” It was provided in the first of the new escrow instructions that the buyer would deposit $22,500 on or before April 30, 1955, for the purchase of, and the seller would accept such sum for, the parcel 150 feet by 150 feet on the northeast corner of Lot 1, Block 8 of Tract Number 11336, as per described recorded map.

On February 21, 1955, instructions were filed in the first of the new escrows by Ida Flodine, individually and as executrix of the estate of Erie Flodine, deceased, modifying the previous instructions. The escrow holder was directed by her to withhold from the payment to her, and to keep in that escrow for payment of certain street improvements, the sum of $13,000, the money to be used as follows:

“On March 6, 1950 I entered into a contract (with my husband) with the City of Redondo Beach wherein we agreed to make certain improvements in Tract No. 11336, Block 8, in the City of Redondo Beach, in accordance with plans and profiles mentioned in said agreement. Said improvements were to be made to the satisfaction of the City of Redondo Beach. Such improvements I will now make, and said sum of $13,000 is set aside for the payment of same. However, I have agreed with the City of Redondo Beach that the payment of labor and material and all construction costs of the improvements described in said contract made on March 6, 1950 will only be made out of said $13,000 when and if and as approved by Mr. F. E. Hopkins, City Manager and Street Superintendent of said City of Redondo Beach. You will therefore hold said $13,000 in. escrow for said purpose and pay the same to parties furnishing materials for or doing work upon the streets and public places in said tract in the performance of said agreement, upon an order signed by me and approved by Mr. F. E. Hopkins, City Manager and Street Superintendent of said city, and not otherwise. In the event said work is completed to the satisfaction of said city, and you have an approval and authority from the said Mr. F. E. Hopkins so to do, any balance remaining in said fund, after the payment of said bills and expenses, will be paid to me.”

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Cite This Page — Counsel Stack

Bluebook (online)
314 P.2d 581, 153 Cal. App. 2d 437, 1957 Cal. App. LEXIS 1512, Counsel Stack Legal Research, https://law.counselstack.com/opinion/redondo-beach-school-district-v-flodine-calctapp-1957.