Sandco American, Inc. v. Notrica

216 Cal. App. 3d 1495, 265 Cal. Rptr. 587, 1990 Cal. App. LEXIS 6
CourtCalifornia Court of Appeal
DecidedJanuary 4, 1990
DocketD006664
StatusPublished
Cited by17 cases

This text of 216 Cal. App. 3d 1495 (Sandco American, Inc. v. Notrica) 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
Sandco American, Inc. v. Notrica, 216 Cal. App. 3d 1495, 265 Cal. Rptr. 587, 1990 Cal. App. LEXIS 6 (Cal. Ct. App. 1990).

Opinion

Opinion

TODD, J.

After a trial by the court sitting without a jury, the trial court entered a $1.4 million judgment for Sandco American, Inc. (Sandco), and against Leon Notrica and Campo de Leon Corporation (CDL or, collectively, Notrica) on Sandco’s breach of contract count in its first amended complaint. The first amended complaint included two fraud counts and a count for tortious breach of the covenant of good faith and fair dealing that were dismissed upon Notrica’s motion for judgment under Code of Civil Procedure 2 section 631.8. The trial court granted the motion of CDL and Notrica for a new trial on the ground stated in section 657, subdivision 1, irregularity in the proceedings of the court by which CDL and Notrica were prevented from having a fair trial. Rejecting all other grounds urged for granting a new trial, the court specifically found CDL and Notrica “were prevented from having a fair trial,” and stated the irregularities in the proceedings were as follows:

“(1) The order of the Court dated January 9, 1986 under Local Rule 9.2 of VII of the San Diego County Superior Court, closing down time for discovery as of July 2, 1986.
“(2) The order of the Court dated July 18, 1986, denying defense counsel’s request to extend the cut-off date for discovery.
“(3) The Court’s order dated August 15, 1986, denying defense counsel’s motion for relief from the court set discovery cut-off dates.
“(4) The Court’s order dated September 10, 1986, denying defendants’ motion to continue the trial so that defense counsel could take depositions.
“(5) The Court’s order dated October 2, 1986, after the case had been sent out to trial, denying defendants’ motion to continue the trial.
“All the said orders prevent [sic] counsel from taking the depositions within the time permitted by the Code of Civil Procedure and by Court *1498 Rule 333 thereby constituting error and preventing defendants from having a fair trial.”

Sandco appeals the order granting a new trial. CDL and Notrica have filed their notice of cross-appeal from the underlying judgment. (See Cal. Rules of Court, rule 3(c).)

Concluding that the orders relating to discovery cited by the court in its order granting a new trial fall within the meaning of “[i]rregularity in the proceedings ... by which either party was prevented from having a fair trial” in section 657, and that Sandco has not made the necessary showing the trial court abused its discretion in granting the motion, we affirm the order and dismiss the cross-appeal. (See 9 Witkin, Cal. Procedure (3d ed. 1985) Appeal, § 393, p. 392, “[I]f, as is usual, the order granting a new trial is affirmed, the effect is that there is no longer a final judgment. Hence, the merits of the cross-appeal will not be considered, and the appropriate order is a dismissal of that appeal. [Citations.]” (Original italics.).)

Facts

Notrica owned a large parcel of raw land in the San Marcos area known as Santalina Hills. Notrica was in the process of subdividing and developing Santalina Hills into a mobilehome park. Sandco was interested in subdividing and developing the property into a manufactured housing subdivision.

The trial court’s statement of decision contains the facts stated in the following paragraphs:

In 1983 Notrica listed the property for sale with a real estate firm and offered the land with an approved tentative map together with all development plans and specifications generated by civil engineers, L&S Consultants, i.e., Ronald Luttio. The written contracts between L&S and Notrica provided that Notrica was to pay L&S $115,000 when the property was sold. The trial court found the L&S engineering work, including surveying notes, hydrology and hydraulic studies, original topographic maps, grading plans, street improvement plans, utility plans, all tentative and final maps, and engineering plans for tentative and final maps, was a major component of the value of the land because it facilitated the development into residential lots.

Sandco, by Messrs. Steven A. Newman and Stanley Grecian, learned of the property through Sheldon Coler, as evidenced by Notrica’s written agreement to pay Coler a $40,000 finder’s fee. Coler obtained from Notrica and delivered to Sandco certain copies of some L&S engineering work.

*1499 Notrica represented and promised, from November 1983 through March 9, 1984, that the land was being sold to Sandco with all engineering work, plans and specifications of L&S Consultants, and Sandco designated L&S Consultants as its civil engineer in loan documentation for a $13 million loan from Vernon Savings & Loan. Notrica showed Newman and Grecian certain plans and L&S cost estimates at the property site, and took Newman and Grecian to interview Luttio of L&S. Sandco was made aware of the debt to L&S by Notrica and Luttio himself.

Sandco executed an option agreement dated December 9, 1983. January 30, 1984, and March 9, 1984, Ticor escrow instructions, as amended, referred at numerous places to the development phases, lots and construction-sales schedules all as provided in the L&S plans and the tentative map.

Notrica promised and represented to Sandco up to close of escrow that L&S would be paid off through the escrow.

On March 9, 1984, Sandco and Notrica concurrently executed final escrow instructions (which also referred to the development phases described in the L&S plans and engineering estimates), and a written “Indemnity Agreement.” The trial court resolved the conflicts in testimony to conclude that the intent of the parties was that, in lieu of payment to L&S through escrow (i.e., in consideration of Sandco’s agreement to forego the payoff of L&S through escrow), Notrica and Gary Sparks (in-house attorney for CDL) promised, under the indemnity agreement, to pay off L&S immediately after escrow. The purpose of the indemnity agreement was to ensure that L&S would be immediately paid by Notrica and thereby L&S would continue as Sandco’s “project engineer,” and that the L&S engineering work would be immediately put to use by Sandco. Notrica and Sparks reviewed the Sandco-Vernon Savings and Loan documents, among which the loan agreement designated L&S as “Project Engineer.”

On or about March 16, 1984, Notrica delivered two $57,500 checks to L&S (without interest of some $5,000 which Notrica had previously agreed in writing to pay), and L&S accepted these checks as an accord and satisfaction. Two days after delivery to L&S, Notrica stopped payment on the checks. The checks were signed by Notrica and annotated that they constituted “payment in full for all engineering and surveying on Santalina Hills.” 3

*1500 Sandco arranged a meeting for the week after close of escrow for all major subcontractors and L&S Consultants. L&S refused to attend, on advice of its attorney.

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Cite This Page — Counsel Stack

Bluebook (online)
216 Cal. App. 3d 1495, 265 Cal. Rptr. 587, 1990 Cal. App. LEXIS 6, Counsel Stack Legal Research, https://law.counselstack.com/opinion/sandco-american-inc-v-notrica-calctapp-1990.