Shoemaker v. Acker

48 P. 62, 116 Cal. 239, 1897 Cal. LEXIS 531
CourtCalifornia Supreme Court
DecidedMarch 10, 1897
DocketL. A. No. 108
StatusPublished
Cited by68 cases

This text of 48 P. 62 (Shoemaker v. Acker) 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
Shoemaker v. Acker, 48 P. 62, 116 Cal. 239, 1897 Cal. LEXIS 531 (Cal. 1897).

Opinion

McFarland, J.

This action was brought to recover damages in the sum of thirty-five thousand dollars for an alleged breach of a written contract between the parties. The jury returned a verdict for plaintiff in the sum of two thousand dollars, for which judgment was entered; and defendant appeals from the judgment and from an order denying his motion for a new trial.

The contract out of which the litigation arises was executed on the fourth day of October, 1892; and, as appellant relies mainly upon two points for a reversal, the parts of said contract necessary to be considered may be briefly stated as follows: The contract recites that the appellant was about to invest from five thousand dollars to seven thousand five hundred dollars in the purchase of unimproved land, to be selected by the parties; that the land should be cultivated, improved, and planted in lemon or orange trees, or partly in each, [242]*242as the said appellant might elect; that the respondent was to have charge of the improvements and cultivation of the land, and was to have an interest in the income and profits that might be derived from the sale of the land or its products, and in the increase and value of said land from said improvements or otherwise. It is then agreed that the respondent will devote his whole time and attention to the management, care, cultivation, and improvement of said land, and the sale of said land and the products thereof”; that the appellant would provide for respondent a suitable dwelling-house upon the land, and give him a certain amount monthly for his maintenance; that the appellant should furnish the necessary funds for the purchase of trees, implements, labor, etc.; that the appellant would not sell any portion of the land within five years from the date of the contract, except with the consent of the respondent; that whenever any portion of the land should be sold, the profit derived therefrom should be ascertained by a method particularly stated in the contract; that whenever any income should be derived from the land in any one year, certain deductions of expenses should be made, and the balance should be considered as profits, and all profits should be equally divided between the parties; that the respondent should keep an account of all moneys received by him from the sale of the products of the land, and that, if any portion of the land should remain unsold upon the expiration of five years, the value thereof should be ascertained by certain appraisers, to be selected by the parties, and if from such valuation there should appear to be any profit, that the respondent should be entitled to receive a deed for such portion of the land as would, according to said appraisal, represent in value his share of the profits; and that “ this agreement shall continue for five years, unless all the land should be sold in the mean time, whereupon it shall cease and determine.”

In accordance with this contract, about one hundred and ten acres of land was purchased, at the price of five [243]*243thousand seven hundred and fifty dollars, and immediately thereafter the respondent entered upon the performance of his obligations under said contract, and under his management down to the seventeenth day of January, 1894, about seventy acres of said land had been cultivated, improved, and planted in lemon trees, as determined upon by the appellant. On said January 17, 1894, the appellant notified the respondent that for certain reasons he elected to consider the contract annulled, after which the respondent, in accordance with the appellant’s demand, left the ranch, and gave up its management. It is not contended by appellant that he did not prevent the further execution of the contract, or that the respondent had not the right to consider it rescinded by the act of appellant, provided the appellant was not justified by the conduct of the respondent in putting an end to the contract.

Appellant’s contention that he had a right to put an end to the contract is based upon an alleged violation by respondent of his covenant to “devote his whole time and attention to the management, care, cultivation, and improvement of said land.” The facts as to that contention are these: The respondent did faithfully and

well manage the cultivation of said land, and the planting of same in trees, the care of the trees, etc.; but on several occasions he left the land on Saturday afternoon and did not return until about noon on Monday, and, upon the remonstrance of the appellant, the respondent claimed that he had the right to so absent himself from the ranch when he could do so without any damage or loss occurring through such absence, and it fully appears that there was no defect in the management of the land, and no loss of any kind occasioned by such absence. Appellant contends, however, that the said agreement in the contract that appellant would devote ‘‘his whole time” was violated by his occasional absences, as above stated. We do not think thát this contention can be maintained. A contract must be construed, with reference to the subject matter, to the circumstances [244]*244under which it was made, and to the evident intention of the parties as made apparent by all the language used—keeping in view the said subject matter and circumstances. In the case at bar the most literal construction of the contract would not include a requirement that the respondent should positively remain on the land all the time. Indeed, liis continuous personal presence there would have prevented the performance of many of his duties under the contract. His duty was the “management, care, cultivation, and improvement of said land, and the sale of said land and the products thereof”; and as he performed this duty faithfully and well until he was prevented by appellant from doing so any longer, and as his short absences from the land were when he was “not needed there” and when his “presence was not necessary,” and did not result in any loss or injury, or constitute any defect in management, we think that the jury were entirely warranted in finding that he had not by such absences committed any breach of the contract.

2. The second point made by appellant on the question of proper damages, although not as elaborately argued as the first point, is, in our opinion, one of graver import.

“ Prospective profits,” as damages, present one of the most difficult subjects with which courts have to deal. It is not the law, however, that they can never be recovered. Our own code states the rule to be that the measure of damages for the breach of a contract is “ the amount which will compensate the party aggrieved for all the detriment proximately caused thereby, or which in the ordinary course of things would be likely to result therefrom.” (Civ. Code, sec. 3300.) An examination of the authorities will show that the cases in which future profits were rejected as “speculative” or “too remote” were cases where the asserted future profits were entirely collateral to the subject matter of the contract, and not consequences flowing in a direct line from the breach of such contract. Familiar instances of profits [245]*245which are thus speculative and remote are those which might have been realized on a new contract with a third person which could have been consummated with the proceeds of the contract sued on if the latter had not been broken; for in such a case the profits on the new contract are wholly collateral to the one broken, do not directly flow from it, and are not stipulated for or contemplated by the parties to the contract sued on.

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Bluebook (online)
48 P. 62, 116 Cal. 239, 1897 Cal. LEXIS 531, Counsel Stack Legal Research, https://law.counselstack.com/opinion/shoemaker-v-acker-cal-1897.