Schwartz v. Shapiro

229 Cal. App. 2d 238, 40 Cal. Rptr. 189, 1964 Cal. App. LEXIS 981
CourtCalifornia Court of Appeal
DecidedAugust 18, 1964
DocketCiv. 21442
StatusPublished
Cited by32 cases

This text of 229 Cal. App. 2d 238 (Schwartz v. Shapiro) 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
Schwartz v. Shapiro, 229 Cal. App. 2d 238, 40 Cal. Rptr. 189, 1964 Cal. App. LEXIS 981 (Cal. Ct. App. 1964).

Opinion

MOLINARI, J.

On this appeal from an interlocutory decree of partition 1 the principal question presented is whether the trial court erred in admitting parol evidence to explain the meaning of a writing which constituted a partial integration of an agreement. Having concluded that the evidence should not have been admitted, we hold that pursuant to the terms of said agreement plaintiff was not entitled to a partition of the property which is the subject of this litigation without first offering to sell her interest to defendants. Accordingly, that portion of the judgment decreeing partition must be reversed and the portion denying defendants relief on their cross-complaint affirmed.

On March 22, 1961, plaintiff, Esther R. Schwartz, and defendants, David J. Shapiro (hereinafter sometimes referred to as Shapiro), and his wife, Eve L. Shapiro, entered into a contract for the purchase of an apartment building for $143,000. At the time of entering into this contract it was discussed between plaintiff and defendants that the property was being purchased for purposes of resale and that it should be held for more than six months in order to obtain capital gain tax benefits. There was also a discussion about the possibility of either party selling his interest to “someone not of *243 the white race.” The sale was finalized on May 2, 1961, when a deed to said property was recorded. On March 30, 1961, and prior to the consummation of said sale, plaintiff and defendants affixed their signatures to a writing 2 which reads as follows :

“San Francisco March 30, 1961
"This agreement between Ester [sic] R. Schwartz & David & Eve Shapiro, being lawful owners of property known as 85 Heather, hereby agree that should either party agree to sell their % interest individually that sale of same shall be first offered to the remaining owner at the original purchase price.
“Should at any time owners of above property decide to sell or trade up, same shall be handled by Schwartz Realty. All funds to be handled thru a separate Bank account requiring signature of both interests.
David J. Shapiro Eve L. Shapiro Esther R. Schwartz”
Disputes between the parties having thereafter arisen concerning the management and sale of the property, plaintiff filed an action for partition. As an affirmative defense in their answer, and also by way of cross-complaint, defendants alleged that pursuant to the terms of the written agreement they were entitled to purchase plaintiff’s interest in said property and that by reason of the commencement of the action plaintiff had offered to sell her interest in said property, which offer defendants, by such answer, accepted. Accordingly, defendants prayed that they “be declared entitled to purchase the said property upon the terms and conditions set forth in the agreement of March 30, 1961. ...”

At the trial the court permitted plaintiff to testify over defendants’ objection, but subject to a motion to strike, 3 that at the time the subject writing was signed it was discussed between the parties that the property was to be held for six months or more; that when it was sold it was to be sold by the parties jointly; that none of the parties was to sell his interest separately; and that the parties were to manage the *244 property jointly, the defendants to live on the premises at a reduced rental and the plaintiff’s firm to receive a monthly fee. 4

Prior to the giving of this testimony by plaintiff, Shapiro 5 had testified, on direct examination, that prior to the execution of the subject writing he had suggested to plaintiff, on several occasions, that they should have an agreement drawn by an attorney concerning “the operation of the property”; that plaintiff stated she was busy with other matters; and that finally the parties met and entered into the writing in question; that it was agreed that they would put their “ ‘thoughts down on paper’ ” until such time as they could get to an attorney so that “ ‘it is clear enough for an attorney to make something out of.’ ”

The trial court found that “It was understood and agreed between them that they would hold and operate the property as co-partners for a period of six months to get advantage of long-term capital gain tax and thereafter sell said property. That at all times since the end of the saR-months’ period defendants have refused to sell or authorize the sale of said premises.” The court further found that: “[0]n March 30th and before the sale was consummated, the parties discussed the possibility of either party selling his one-half interest to an Oriental or other purchaser who might be considered by the other party. Defendant David J. Shapiro then wrote a long-hand memorandum, Exhibit ‘C’[ 6 ] herein, which was thereupon signed by the said parties. . . . That at said *245 time and all times since, a partnership and confidential relationship existed between the parties. Neither party had the advice of an attorney before signing said document, but it was agreed between the parties that said document was preliminary to securing a formal contract to be prepared by an attorney. That in signing said document the parties relied upon their said prior understanding that they would hold said premises for six months and then joing [sic] in a sale of said property, and understood and intended that the provision ‘should either party agree to sell their % interest individually’ applied to the situation that the parties had been discussing, as aforesaid, namely, the possibility of either party selling his one-half interest to some undesirable third party.” Upon these findings the trial court concluded “That to construe the said document executed by the parties under date of March 30, 1961 . . . so as to make the same apply to a sale of the entire fee under an order of Court herein would be grossly unfair and inequitable, and not in accordance with their mutual intent and consent at the time they signed said document.” The court below also reached the conclusion “That the filing of the partition cZuit did not constitute an agreement by plaintiff to ‘sell her % interest individually. ’ To the contrary, there can be no sale in a partition suit other than the sale of the entire fee and such sale must be made by the Court and not by either party.” Defendants appeal from the judgment “signed on November 19, 1962 and filed November 26, 1962 and from the whole thereof.” 7 The record discloses that this judgment is the interlocutory decree of partition.

It is apparent from defendants’ briefs that they purport to appeal both from the decree of partition and the trial court's adjudication that they are not entitled to specific performance, which determination is apparently based upon the trial court’s conclusion that the subject writing was grossly unfair and inequitable.

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Bluebook (online)
229 Cal. App. 2d 238, 40 Cal. Rptr. 189, 1964 Cal. App. LEXIS 981, Counsel Stack Legal Research, https://law.counselstack.com/opinion/schwartz-v-shapiro-calctapp-1964.