Shaw v. Shaw

117 P. 1048, 160 Cal. 733, 1911 Cal. LEXIS 570
CourtCalifornia Supreme Court
DecidedSeptember 14, 1911
DocketS.F. No. 5355.
StatusPublished
Cited by4 cases

This text of 117 P. 1048 (Shaw v. Shaw) is published on Counsel Stack Legal Research, covering California Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Shaw v. Shaw, 117 P. 1048, 160 Cal. 733, 1911 Cal. LEXIS 570 (Cal. 1911).

Opinion

HENSHAW, J.

Plaintiff and defendant are brothers. They owned in common two hundred acres of timber land in Humboldt County. The value of such timber land was estimated (provided the timber was sufficient in quantity to justify cutting) at a dollar per thousand standing feet per acre. Thus, an acre of land containing one hundred thousand standing feet of timber was estimated to be worth one hundred dollars. The brothers desired to sell their two hundred acres and they had their land “cruised, ” that is to say, the amount of timber upon it approximately estimated, and were disappointed to find that it averaged only about twenty thousand feet per acre, which would mean a valuation of twenty dollars an acre or four thousand dollars for the tract. They desired to obtain more than this, as much as possible, of course. The *735 defendant conceived the idea of gathering in by purchase or under bond as large a tract of better timber land as was possible and of making a sale of the whole, including the two hundred acres. He proceeded to do this at his own cost and expense, buying eighty acres and bonding other lands until in the aggregate he controlled approximately fifteen hundred acres which he then offered for sale. The intending purchasers were willing to buy the land, provided the land averaged sixty thousand standing feet per acre. That it would so average defendant felt well assured. A bond was given to the intending purchasers whereby the purchasers agreed to buy the land at the price of sixty dollars an acre if they satisfied themselves that it would average sixty thousand standing feet of lumber per acre. A brief time was given to them to have the land “cruised.” They satisfied themselves of its value and the purchase was completed. After the bond was given and before the purchase was actually made defendant wrote to his brother and without advising him of the condition of affairs or the price which he expected to obtain asked him for what sum he would sell his interest in the two hundred acres, and enclosed a dee(l for the plaintiff to execute. Plaintiff did execute the deed for a consideration of twenty-five dollars an acre and wrote to his brother saying that he knew that “we had agreed between ourselves not to take less than $25 an acre.” He also agreed to allow his brother a two hundred-dollar commission for effecting the sale. The sale was made. The defendant accounted to his brother for the twenty-five hundred dollars, deducting a commission of two hundred dollars. Subsequently plaintiff learned that all the land had sold at the rate of sixty dollars per acre and brought this action to recover the sum which he claimed to be due him in accordance with the terms of the sale. The cause was tried before a jury. Its verdict and the judgment following were given for the plaintiff. Defendant moved for a new trial and from the order denying his motion, though not from the judgment, he appeals.

Defendant’s contention is that the two hundred acres were worth no more than twenty dollars an acre, that this land could not be sold even for that without adding to it other and more valuable timber land; that to accomplish this sale he had spent his time and money; that the land was, while sold nominally for sixty dollars an acre for the whole tract, actually sold per *736 acre according to the value of the timber standing upon it; that when the plaintiff made the conveyance of his interest in the two hundred acres for twenty-five dollars an acre the price was actually more than the land was worth, and that he, defendant, took the deed either as a purchase which he had the right to make since he was paying more than the land was worth (in this matter the defendant’s own testimony is inconsistent with itself) or took the deed not as a purchaser of his brother’s interest but in effect as a bond upon the property the better to enable him to sell it; that when he sold it he was in equity accountable to his brother for only the timber value, —namely, twenty dollars an acre and that, consequently, under the terms of the sale actually made he had overpaid and not underpaid his brother in their settlement. The contention of the plaintiff upon the other hand is that his brother acted for him as his agent in the sale of his land (and this is conceded by the stipulation of the parties); that the distinct understanding was that while they would be willing to sell their two hundred acres for twenty-five dollars an acre and not less, they, of course, desired to get as much more for it as possible; that the defendant agreed to undertake the sale, to gather in other tracts of timber land and to sell the whole, including the two hundred acres, for such price per acre as could be obtained; that the very purpose of this arrangement was to increase the price obtainable for the two hundred acres; that the land was actually sold for sixty dollars per acre; that this sixty dollars per acre represented the selling price of the two hundred acres as well as of every other acre in the combined tract; that it was their express agreement that he should be paid such sum per acre as the land sold for; that his brother by concealment induced him to give the deed at twenty-five dollars per acre knowing the land was to be sold for sixty dollars an acre and after the sale continued to conceal the selling price from him until from outside sources he discovered what it was.

The evidence leaves little doubt but that for timber the two hundred acres was not worth more than twenty dollars per acre, but this is not a controlling consideration. The controlling considerations are two. 1. What was the relationship between the plaintiff and defendant in regard to the land which they owned in common, and 2. What were the terms of the *737 sale which defendant actúally made. The first consideration is completely answered by the stipulation of the parties solemnly entered into upon the trial of the cause to the following effect: “It is admitted that the defendant was the agent

of the plaintiff for the sale of the plaintiff’s land.” This relationship, of course, as matter of law, bound the defendant to the utmost good faith in his dealings with his principal. But besides the obligation of the law, the testimony of the plaintiff and of his witnesses was that the defendant had agreed that plaintiff should have his full share of all the two hundred acres sold for; that in the selling of the whole tract “all would go in at the same price by the acre”; that he, plaintiff, was to have the same price per acre that defendant received. “I was to have for my land just the same as the land sold for.” To other witnesses the defendant is represented as saying that "when plaintiff’s land went into the tract plaintiff would get his share per acre for which it was sold.” It is undoubted that defendant kept plaintiff in ignorance of the price when he secured from him his deed to the land at twenty-five dollars per acre. In his testimony he treats this transaction with his brother as a direct purchase by him of all his brother’s rights, saying that he had made him an offer and that "when the deed was signed by him of course I bought it”; that at the time he was satisfied that his sale was “going to go” and that he “took it” (his brother’s land) and “took a chance as to whether the sale was going to go through”; in the next breath he apparently denies that he made any offer for the land and seemingly wishes to convey the idea that the deed is to be treated merely as a bond authorizing him to sell.

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Bluebook (online)
117 P. 1048, 160 Cal. 733, 1911 Cal. LEXIS 570, Counsel Stack Legal Research, https://law.counselstack.com/opinion/shaw-v-shaw-cal-1911.