Reed v. Hickey

109 P. 38, 13 Cal. App. 136, 1910 Cal. App. LEXIS 214
CourtCalifornia Court of Appeal
DecidedApril 1, 1910
DocketCiv. No. 683.
StatusPublished
Cited by7 cases

This text of 109 P. 38 (Reed v. Hickey) 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
Reed v. Hickey, 109 P. 38, 13 Cal. App. 136, 1910 Cal. App. LEXIS 214 (Cal. Ct. App. 1910).

Opinion

CHIPMAN, P. J.

This is an action to recover the balance of the consideration mentioned in a certain contract for the sale of certain placer mining property situated in Calaveras county. Plaintiff had judgment, from which and from the -order denying their motion for a new trial defendants appeal. The question now here rests chiefly upon the interpretation, to be given to the agreement in the light of the circumstances surrounding the parties and their conduct and acts at the execution of the agreement and subsequent thereto.

It is set forth in the complaint that on April 29, 1907, and for many years prior thereto, plaintiff was the owner of the property in question, called the Eeed Drift mine; that on that day one J. B. King was and had been the agent of defendants in negotiating for a contract for the sale and purchase of said mine, and upon, that day plaintiff entered into an agreement in writing with said King, for said defendants, the material provisions of which are as follows: Eeciting the fact of plaintiff’s ownership and setting forth a description of the mine;, the contract recites that second party “is desirous of an option to purchase said property for the agreed purchase price of $36,000, based upon the privilege of sixty days from date in which to prospect by sinking a shaft from the surface and drifting therefrom to ascertain the course and extent of the lead on which said party of the first part is now breasting and milling the gravel taken out.” It is then provided that in consideration of the faithful performance of the terms of the contract by the second party, as therein-after set forth, first party “covenants and agrees to sell and convey the said Eeed mine to said party of the second part,, at any time within said sixty days from the date of these presents, upon-payments and conditions as follows.” These conditions provide for a payment of $10,000 on or before June 29, 1907; $6,500 to be paid on or before September 29, 1907; $6,500 on or before' December 29, 1907; $6,500 on or before March 29, 1908, the full and final payment of $6,500 *138 to be paid on or before June 29, 1908. The contract then fixes the point upon the mine at which the prospecting shaft is to be sunk, and provides that “until the expiration of the sixty days’ option, hereby granted the right to continue the uninterrupted working and operating of said mine by said party of the first part and to the proceeds of the gravel taken out is agreed to, and that the said privilege of prospecting by said party of the second part shall in no manner interrupt or interfere with the working of said mine by said party of the first part”; and “all pay gravel taken out by the party of the second part while prospecting during the said period of sixty days shall belong to- said party of the first part”; that all buildings, improvements and appliances placed upon the premises by second party “during said period of sixty days granted for prospecting” are to belong to said first party upon failure of second party to make the first payment provided for. It is then provided that upon payment of the first installment within said period of sixty days from date, first party will at once make and execute a good and sufficient conveyance of said mine, and deposit the same in escrow with the Bank of California, with instructions to hold the same during the life .of the said agreement and deliver the same upon “payment of the.balance of said purchase price at the times as herein stipulated, but if default be made in making any of said payments, or any violation of the terms or conditions of this agreement, to return said deed to the party of the -first part. ’ ’ It was further agreed' that upon receipt of the first payment, party of the first part “will at once turn over and surrender possession of said property to said party of the second part with the hoist, mill and all tools and appliances, owned by him and heretofore used in working said mine; . . . and thereupon said party of the second part shall have the right and privilege of entering upon and into said Reed mine and of mining, prospecting and developing the same, .and of taking out and working the gravel or any other mineral deposit, and extracting the gold contained therein for his own use and benefit.” It is next provided that second party shall do the prospect work in a good and workmanlike manner at his own cost and expense, and contains certain provisions for protecting first party against liens or unpaid labor and materials. The contract also gives to the first party the privi *139 lege of access to the mine and mill in order that he may know the character of the work being done and the extent of the pay gravel extracted. Time is expressly made the essence of the agreement, and it is provided “that a default in payment of either or any of the installments of said purchase price at the times and in the manner stated, or the failure to make monthly payments of the operating expenses in working said mine or to file with the party of the first part, on the tenth day of each month, a statement of such running expenses with vouchers, within a reasonable time thereafter, showing the payment thereof, shall at once abrogate this agreement, and its provisions shall no longer bind the party of the first part, and he may at once re-enter and assume possession and control of the whole of said described mining property, together with any and all machinery, buildings, tools, lumber, material, appliances and improvements either made or placed thereon by said party of the second part, and the same together with all payments of money on account of said purchase price shall be forfeited to said party of the first part as liquidated damages for the use and occupation of said property, . . . and all such machinery, buildings, tools, lumber, materials, appliances and improvements together with any and all such payments made of said purchase price shall revert to and belong to said party of the first part without legal recourse by said party of the second part. ”

It is averred that said King entered into said contract with plaintiff “as the representative of defendants and for them and as their agent, and he, said King, immediately after the execution of said contract, assigned and transferred all. right therein and interest thereto to said defendants Hickey and Lamb; and they, said defendants Hickey and Lamb, thereupon entered into and upon said mine and commenced prospecting therein”; that on May 18, 1907, defendants notified plaintiff of their exercise of the option to purchase said mine at the price of $36,000, payable to plaintiff in installments, at the times and in the amounts as in the said agreement specified, and on that day paid to plaintiff on account of said purchase price the sum of $10,000, and then demanded that plaintiff at once make and execute to them a deed of the said mine and deposit the same with the Bank of California, with instructions to hold said deed during the life of the agree *140 ment and. to deliver the same to the defendants upon the payment made at said bank of the balance of said purchase price;

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Cite This Page — Counsel Stack

Bluebook (online)
109 P. 38, 13 Cal. App. 136, 1910 Cal. App. LEXIS 214, Counsel Stack Legal Research, https://law.counselstack.com/opinion/reed-v-hickey-calctapp-1910.