Sharpe v. Brotzman

302 P.2d 668, 145 Cal. App. 2d 354, 1956 Cal. App. LEXIS 1343
CourtCalifornia Court of Appeal
DecidedOctober 24, 1956
DocketCiv. 16868
StatusPublished
Cited by11 cases

This text of 302 P.2d 668 (Sharpe v. Brotzman) 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
Sharpe v. Brotzman, 302 P.2d 668, 145 Cal. App. 2d 354, 1956 Cal. App. LEXIS 1343 (Cal. Ct. App. 1956).

Opinion

*355 PETERS, P. J.

Vera M. Sharpe appeals from a judgment adverse to her. The facts appear to he as follows: When the original complaint was filed on March 18, 1954, Vera M. Sharpe and her husband were coowners of the property here involved, but the complaint was filed in the name of the wife alone. Later the trustee in bankruptcy of the estate of the husband came into the action by way of a complaint in intervention. On the date of the filing of the original complaint in Mendocino County the court issued a temporary restraining order preventing defendants from selling the property and ordering them to show cause on March 26, 1954, why they should not be so enjoined pending suit. It also appears that defendants’ motion for a change of venue to Santa Clara County was granted on April 5, 1954.

The record shows that the Brotzmans filed a cross-complaint, but no recovery was granted to them based on its allegations, and no appeal has been taken from such denial. During trial, by consent of the parties, defendants Sleveland and Cagle were dismissed as parties.

The case went to trial on the issues joined as to the first count of the second amended complaint, the other count of such pleading not being now involved. This first count alleged that plaintiff was the owner of an undivided one-half interest in a certain sawmill and its equipment; that on February 18, 1952, plaintiff and her husband and one Kirkwood (the latter having purchased the property with the two Sharpes, but later having conveyed his interest to the Sharpes) executed and delivered to the Brotzmans a promissory note for $34,369.42 secured by a deed of trust on the realty and a chattel mortgage on the personalty. It is then alleged that “on or about the 11th day of April, 1953, defendants Ira Brotzman and Antoine Brotzman wrongfully and without cause and without any authority or permission from plaintiff or said Milton Sharpe, took possession of all of the said real property and the said personal property hereinabove described, that on said 11th day of April, 1953, the said defendants Ira Brotzman and Antoine Brotzman had no legal title to either said real property or said personal property and plaintiff and the said Milton Sharpe at said time were each the owners of an undivided one-half interest in the said real and personal property; that thereafter defendants, Ira Brotzman and Antoine Brotzman without any authority or permission from plaintiff or Milton Sharpe placed defendants, James Cagle and Arnold Sleveland, in possession *356 of the said real and personal property.” It is then alleged that defendants in this fashion thus deprived plaintiff of the use of her property, and that she is entitled either to its return or the reasonable value of her interest therein in the amount of $35,000.

To this complaint the defendants answered, denying its major allegations, and filed a cross-complaint. The defendants Cagle and Sleveland also answered, but they were later dismissed. On the issues thus formed the case proceeded to trial.

The facts developed at the trial were that the sawmill and its appurtenances were sold by the Brotzmans to the Sharpes and Kirkwood in October of 1951 for $40,000. Prior to February 18, 1952, the purchasers paid over $6,000 on the purchase price. On this last date the purchasers executed and delivered to the Brotzmans a promissory note for $34,369.42 for the balance of the purchase price, plus a few other uncontested charges. The note was secured by a deed of trust and chattel mortgage. The note provided for interest at 4 per cent payable monthly, and also required monthly accountings by the purchasers of the number of board feet cut at the mill, and required the purchasers to pay the Brotzmans $4.00 per 1,000 feet cut. The payments were to be applied first to interest, then to principal, with not less than $6,000 to be paid by September 1, 1952, with the entire balance due by August 13, 1954.

In July of 1952 the Brotzmans sent the purchasers a notice of default. This led to certain negotiations between the parties whereby Mr. Sharpe transferred his interest in a certain gasoline station to the Brotzmans for a $12,000 credit on the mill obligation. In exchange for this equity in the gasoline station the Brotzmans waived all payments except interest from August, 1952, through June of 1953, if the monthly cuttings did not exceed 400,000 board feet a month, but, if they did, the Brotzmans were to be paid $4.00 per thousand feet on the excess. For the months of July, August and September, 1953, the rate of payment was reduced to $2.50 per thousand feet. An addendum to the written agreement provided that “All payments for balance of 1952 on cutout is hereby waived.”

This written agreement was signed by Brotzman and Sharpe on September 4, 1952, at which time Brotzman also gave Sharpe a bill of sale to a certain piece of sawmill equipment covered by the chattel mortgage.

*357 The purchasers operated the sawmill until January 10, 1953, when they entered into a lease-purchase agreement with Davis and Sanderson, who operated the mill until April 10, 1953, when they were ousted from possession by the Brotzmans. During the period they were operating the mill Davis and Sanderson paid the Sharpes a $1,000 down payment and about $2,000 on the lumber cut by them.

After the gasoline station settlement was executed in September of 1952, Brotzman testified that he made no further demands on the Sharpes until January of 1953, at which time he demanded certain interest payments and certain taxes that he had paid. Sharpe then paid Brotzman $434.56 for interest and taxes. About April 8, 1953, when the Sharpes were again delinquent on certain payments, Brotzman visited the sawmill. He discovered that conditions were bad and he so notified the Sharpes. Among other things, there were attachments and tax liens levied against the property, insurance in a large amount was about to expire, and the equipment of the mill was in poor repair and working badly.

Under these circumstances, the Brotzmans foreclosed on the chattel mortgage and bid in the personal property for $3,500. About this same time the Brotzmans took over possession of the sawmill and on April 21, 1953, the Brotzmans put Cagle and Sleveland into possession. These tenants paid the Brotzmans $100 a month rent, and later bought the mill for $5,000.

The original complaint in the present action was filed March 18, 1954. On March 31, 1954, the Brotzmans had the trustee under the deed of trust sell the mill property, Brotzman buying it for $3,450. The Brotzmans are still in possession of the property and collecting the rent therefrom.

On this evidence the trial court found that on April 10, 1953, and thereafter, the Sharpes were in default; that the Brotzmans then foreclosed the chattel mortgage and bought in the personal property at the sale; that this terminated the Sharpes’ interest in the personalty; that subsequently the trustee under the deed of trust conducted a valid sale of the realty, which was bought by the Brotzmans; that this terminated the Sharpes’ interest in the realty. Based on these findings judgment was awarded defendants on the first cause of action of the second amended complaint. Mrs. Sharpe appeals.

It is somewhat difficult to ascertain appellant’s precise theory on this appeal.

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Bluebook (online)
302 P.2d 668, 145 Cal. App. 2d 354, 1956 Cal. App. LEXIS 1343, Counsel Stack Legal Research, https://law.counselstack.com/opinion/sharpe-v-brotzman-calctapp-1956.