Rosenthal v. Bauer

157 P. 1137, 30 Cal. App. 277, 1916 Cal. App. LEXIS 47
CourtCalifornia Court of Appeal
DecidedApril 14, 1916
DocketCiv. No. 1595.
StatusPublished

This text of 157 P. 1137 (Rosenthal v. Bauer) 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
Rosenthal v. Bauer, 157 P. 1137, 30 Cal. App. 277, 1916 Cal. App. LEXIS 47 (Cal. Ct. App. 1916).

Opinion

LENNON, P. J.

On July 12, 1906, the plaintiffs, as lessors, and the defendants Bauer and Sachau, as lessees, entered into a lease of certain real property for a period of ten years from the date of the acceptance of a building to be erected upon the real property, at a monthly rental of six hundred dollars for the first five years and seven hundred dollars for the remaining five years. The lessors insisted upon a guaranty for the payment of the rent reserved, and accordingly the lessees Bauer and Sachau procured a written guaranty, expressed upon a separate paper, purporting to be signed by the National Brewing Company, which was attached to the lease, and which was in the following words and figures:

“Know all men by these presents that for and in consideration of the execution of the within lease by the parties of the first part, and in consideration of one dollar to it paid, the undersigned, the National Brewing Company, a corporation, duly incorporated under and by virtue of the laws of the State of California, does hereby guarantee to said lessors, parties of the first part, the payment of the rent reserved in said lease and the performance of the covenants and conditions to be performed by the parties of the second part, in the sum of thirty-six hundred ($3,600) dollars; and hereby agrees that it will indemnify said lessors, parties of the first part, in said sum against any loss or damage which they or either of them might incur by reason of the breach of any of the covenants of said lease by said parties of the second part.

“Dated July-, 1906.

“National Brewing Co.

“By George F. Volz,

“Secretary.”

*279 The lessors expressed dissatisfaction with the guaranty thus drawn and delivered in so far as it failed to reveal the corporate authority for its execution, and returned it to the secretary of the corporation defendant with the request that the authority for its execution he evidenced by a resolution of the board of directors of said corporation. Thereupon the board of directors of said defendant adopted and expressed upon a separate paper, which was attached to the lease and guaranty as originally drafted, the following resolution:

“San Francisco, Cal, July 12, 1906.

“At a special meeting of the board of directors of this association, held at this ofñce 7262 Fulton street, at 9 o ’dock A. M. July 12, 1906, it was resolved that the secretary of this corporation be authorized to sign that certain guaranty on lease of L. Bauer and John Sachau with Hannah Rosenthal, Amelia Waterland, Fannie Bernard and Rose Oser, for the sum of $3,600, being for six months’ rent at $600 per month.

“There being no further business it was resolved to adjourn.

“George F. Volz, (Seal)

After the execution and delivery of the lease in question, with the guaranty as originally drafted and the resolution attached thereto, the tenants Bauer and Sachau, on the nineteenth day of January, 1907, when the building referred to in the lease was completed and accepted, entered into the possession of the demised premises, and paid rent under the terms of the lease to July 13, 1913, after which date they refused to pay further rent. Plaintiffs brought this action against Bauer and Sachau, as lessees, and the National Brewing Co. as guarantor, to recover seven hundred dollars, the rent from July 19th to August 19th, under the terms of the lease, which provided that during the second five years the rent reserved should be in that amount. The defendants Bauer and' Sachau defaulted, and judgment was rendered and entered against them in favor of the plaintiffs, but, upon the issue of the guaranty judgment was rendered in favor of the corporation defendant, and the appeal is by plaintiffs from that judgment and from an order denying a new trial.

The appeal comes here on the judgment-roll and a statement of the case. The statement, however, does not purport *280 to present all of the evidence adduced upon the trial of the case, and apparently is limited to a recital of “the evidence concerning the relative time of the execution of the guaranty and the certificate of resolution.”

In addition to alleging the execution of the lease and the breach by the defendants Bauer and Sachan of the covenant to pay the rent reserved therein for the month above mentioned, the plaintiff’s complaint for cause of action against the corporation defendant, pleaded and relied upon the alleged execution and delivery of the guaranty in the sum of three thousand six hundred dollars as originally drafted, and made no reference to the resolution of the corporation defendant authorizing and embodying a guaranty for the payment of six months’ rent at six hundred dollars per month. The answer of the defendant denied the execution and delivery of the guaranty as originally drafted and pleaded in the plaintiff’s complaint, and then averred that although it had authorized a guaranty to the plaintiffs for the payment of the first six months’ rent reserved under the lease in the sum of three thousand six hundred dollars, yet such guaranty had never been executed and was never delivered to the plaintiffs.

The trial court in its findings of fact, after finding the execution of the lease and the breach of the covenant to pay the rent reserved in the sum oí seven hundred dollars for the month commencing July 19, 1913, and ending August 19, 1913, in effect found that the original guaranty and the resolution were attached to the lease when it was finally delivered to plaintiffs; that the original guaranty and the resolution were executed by and between the same parties; that the subject matter of the lease was the same, and that they and the lease were parts of substantially one transaction.

It is conceded that these findings necessarily involve the implied finding that the original guaranty and the resolution constituted but a single contract of guaranty. (Civ. Code, sec. 1642.)

These are the fundamental findings in the ease; and whether or not'they support the judgment is the primary question presented upon the appeal. The determination of that question depends upon the construction to be given to the contract of guaranty. Evidently the trial court construed it to mean that the corporation defendant had thereby obligated itself to guarantee only the payment of .the rent re *281 served for six months during the first five years of the lease not to exceed the sum of three thousand six hundred dollars, at six hundred dollars per month; that is to say, the trial court in effect found that the corporation defendant, by its contract of guaranty, only obligated itself to indemnify the plaintiffs against such default in the lessees’ payment of the rent reserved as might occur during the first five years of the lease, when the rent reserved was fixed at six hundred dollars per month.

This, we think, is the correct construction to be given to the guaranty.

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Bluebook (online)
157 P. 1137, 30 Cal. App. 277, 1916 Cal. App. LEXIS 47, Counsel Stack Legal Research, https://law.counselstack.com/opinion/rosenthal-v-bauer-calctapp-1916.