Silver v. Bank of America National Trust & Savings Ass'n

118 P.2d 891, 47 Cal. App. 2d 639, 1941 Cal. App. LEXIS 1218
California Court of Appeal·Decided November 7, 1941·No. Civ. 6563·Published·Cited by 5 cases

Opinion

ROSS, J. pro tem.

Bank of America National Trust and Savings Association, a corporation, is referred to herein as Bank of America or as “the bank,” and California Lands, Inc., a corporation, as Calif. Lands.

Defendant Calif. Lands was vendee under an agreement with Bank of America of numerous parcels of land owned by the bank, by the terms of which agreement the bank retained title and Calif. Lands sought other purchasers, and when sales were made title passed directly from the bank to the individual purchaser. Calif. Lands also had the right to lease or rent said lands.

In November, 1937, Calif. Lands leased the parcel of land involved herein, a ranch, to plaintiff for three years. One of the terms of the written lease was:

“If the lessor makes a bona, fide sale of said premises or any part thereof prior to the 31st. day of October, 1940, this lease on said part so sold shall thereupon terminate at the option of the lessor, and the lessee, within sixty days after receiving notice of such sale, shall surrender possession of the premises to the lessor.”

On April 27, 1939, by writing, the lease was modified to extend the term to October 31, 1941, and to add this paragraph:

“Lessor agrees to construct on the premises a 12-cow sanitary walk-thru barn and milk house, properly lighted and piped for water, at a total cost not to exceed the sum of $1300.00, and further agrees to install on the premises a 114 *642 H. P. electric motor and small centrifugal pump for domestic water service.”

Calif. Lands then proceeded to have such a barn built. It was finished June 25, 1939. In July the inspector for the State Department of Agriculture required certain changes, which were made, and on August 3, 1939, the same inspector accepted the building as complete and sanitary. However, some time later the plaster in the milk room cracked badly with the result that the milk room became “unsanitary.” The motor and pressure system required by the modification agreement were installed by Calif. Lands. Certain sanitary equipment which the state inspector required Silver to obtain before he could have a permit to sell milk was not, however, acquired by him.

In September, 1939, one Lagomarsino began negotiating with Calif. Lands for purchase of this ranch. He paid $250 to a realtor who handled deals for Calif. Lands as down payment with an offer to purchase for $13,000, but this offer was not accepted. The realtor was asked to try to get a higher bid from him, and he contacted Lagomarsino and tried to get him to offer $15,000. Lagomarsino orally offered $14,000, and the realtor submitted this to Calif. Lands. The pricing committee passed favorably on this and the realtor telephoned to Lagomarsino and stated that his offer was accepted, and Lagomarsino expressed satisfaction. This was on September 11, 1939. On September 12th Calif. Lands gave plaintiff written notice that the ranch had been sold and he was required to surrender possession within sixty days.

After the expiration of sixty days a three-day notice to vacate was served on plaintiff and then an action was filed for possession of the premises. In February 1940, this action came on for trial, and a non-suit was granted, apparently because there had been no sale actually made to Lagomarsino on September 12, 1939, the day the sixty-day notice was given. The evidence in the instant case shows, however, that a deed, deed of trust, note, escrow instructions, etc., for the $14,000 deal between Calif. Lands, Bank of America, and Lagomarsino were all prepared soon after September 11th, and Lagomarsino testified that he had at all times been ready to go ahead with the deal and that plaintiff’s withholding of possession had been the only drawback.

*643 In April, 1940, the present action was commenced in three counts. In the first plaintiff alleged fraudulent misrepresentation by defendants of the fact of a sale to Lagomarsino when there was as yet no actual sale made, and asked $250 actual damages for the expense he had incurred in looking for another ranch to move to and $5000 exemplary damages. In Count II plaintiff alleged the action for possession of the premises, which had resulted in a non-suit, had been malicious and without probable cause, and asked for $1850 actual damages and $5000 exemplary damages. In Count III plaintiff alleged a breach of the modification agreement in that the barn constructed was not sanitary and that he had therefore been unable to use it to produce market milk, but had been forced to sell his milk and cream for butter fat or cheese only, to his damage in the sum of $1881.60.

On the trial special interrogatories were answered by the jury as follows:

“1. Was the Bank of America National Trust and Savings Association, a corporation, guilty of fraud as alleged in Count I of the complaint? Yes.
“2. Was California Lands, Inc., guilty of fraud as alleged in Count I of the complaint? Yes.
“3. Was Bank of America National Trust and Savings Association guilty of malice as alleged in Count II of the complaint ? No.
“4. Was Calif. Lands Inc. guilty of malice as alleged in Count II of the complaint? No.”

A general verdict was rendered for plaintiff for $250 compensatory damages on Count I, for the defendants on Count II and for plaintiff for $1881.60 damages on Count III.

A motion for judgment notwithstanding the verdict was granted to both defendants on Count I but denied as to Count III.

Thereafter, by a different judge than the one who tried the case, a new trial was denied to plaintiff as to Count I, but was granted as to Count II, and a new trial was denied to defendants as to Count III.

Defendants appealed from this judgment as to Count III and from the order granting a new trial as to Count II. A reporter’s transcript was duly obtained and brought up on these appeals. Plaintiff appealed from the judgment as to Count I but had no record prepared, either by way of bill *644 of exceptions or reporter’s transcript. His appeal is on the judgment roll alone therefore, as a motion to consolidate the appeals was denied by this court. (Silver v. Bank of America, 43 Cal. App. (2d) 835 [111 Pac. (2d) 666].) However, all the appeals are apparently considered to be before the court at this time, and are all embodied in the instant ease file of this court.

There being no error whatever apparent in the judgment roll as to Count I, the judgment for defendants on that count must be affirmed. The new trial as to Count II was granted solely because of the giving of Instruction 18, the judge feeling that the jury should have been advised that good faith was a required element of the sale.

This instruction was as follows:

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Silver v. Bank of America National Trust & Savings Ass'n, 118 P.2d 891, 47 Cal. App. 2d 639, 1941 Cal. App. LEXIS 1218 (Cal. Ct. App. 1941).

118 P.2d 891 (Silver v. Bank of America National Trust & Savings Ass'n) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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