Sterling v. Cole

106 P. 602, 12 Cal. App. 93, 1909 Cal. App. LEXIS 44
CourtCalifornia Court of Appeal
DecidedDecember 1, 1909
DocketCiv. No. 718.
StatusPublished
Cited by3 cases

This text of 106 P. 602 (Sterling v. Cole) 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
Sterling v. Cole, 106 P. 602, 12 Cal. App. 93, 1909 Cal. App. LEXIS 44 (Cal. Ct. App. 1909).

Opinion

TAGGART, J.

Action to recover the sum of $5,000 alleged to be due plaintiff from defendant’s testator on account of profits made by the latter in connection with the purchase of property by him as the agent of plaintiff.

Verdict and judgment for defendant, and plaintiff appeals from judgment on a bill of exceptions. The exceptions mainly relied upon for a reversal are directed to- the insufficiency of the evidence to support the general verdict and the findings *95 of the jury upon the thirteen special issues submitted to them. The principal question here involved is: Does t'he record show evidence to justify the jury in finding that the decedent, J. H. Cole, was not the agent of plaintiff in the transaction in question? Plaintiff testifies directly that he did employ Cole to purchase the property, and he is corroborated in some respects by one other witness, and unless we can say that the circumstances of the transaction and the other testimony were such that the jury, in the exercise of their exclusive statutory right of judging of the credibility of witnesses (Code Civ. Proc., sec. 1847), could discredit the testimony of the plaintiff and his witness, we must reverse the judgment.

While these witnesses were presumed to speak the truth, the jury were nevertheless entitled to weigh their evidence by their motives and interests, and to consider the conduct of the plaintiff in speaking or failing to speak when the circumstances required that in good faith he should do so. There was evidence of this character before the jury from which to determine the weight to be given the testimony of these witnesses. Prom such evidence the jury could ascertain the probability or improbability of the truth of the testimony and accept or discredit' it, although there was not one direct statement in the evidence in conflict therewith. If, basing their findings upon such evidence, the jury should find that the testimony of plaintiff was not entitled to any consideration, this court would not, for t'he purpose of reversing the judgment, say the verdict was not justified by the evidence. The inferences to be drawn from the circumstances of the transaction, as to the credibility of the witnesses, are peculiarly within the province of the jury. In other words, jurors are not bound t'o decide in conformity with the declarations of any number of witnesses which do not produce conviction in their minds, against a presumption or other evidence satisfying their minds. (Code Civ. Proc., sec. 2061, subd. 2.)

Plaintiff’s cause of action rests upon the allegations that he gave Cole $25,000 to purchase the interest of one H. E. Harris in a ranch in San Bernardino county, Harris’ stock in the Rancho Verde Company, a .corporation, in which the title to the ranch was held, and also Harris’ interest in some government’ lands upon which were located certain springs used in connection with the ranch, and that Cole only paid *96 Harris $20,000 for the property and concealed this fact from plaintiff.

In answer to the special issues submitted to them, the jury found substantially t'he following facts: That Cole did not agree to purchase the property from Harris as plaintiff’s agent; that he did not purchase it as such agent, but on his (Cole’s) own account. That Cole represented to plaintiff that' the lowest price at which the property could be purchased from Harris was $25,000, and that this representation was true, and that this was the consideration paid by Cole to Harris, but that the consideration did not all consist of money. That the purchase of this property by Cole from Harris was made, together with the purchase of Harris’ interests in other properties, and the consideration, as a whole, for all these properties amounted to about $40,000, and was paid by assuming the payment of certain debts and obligations of Harris, consisting of taxes, interest, mortgage indebtedness, and contingent obligations due on a portion of the lands which were purchased from the Southern Pacific Railroad Company.

The testimony of Harris shows that he and Cole were the owners of all the corporate stock of the Rancho Yerde Company, consisting of 600 shares, Cole of two-t'hirds (400 shares), and Harris one-third (200 shares), and half owners in other property, against some of which there were outstanding joint indebtedness of both for a considerable sum, besides the contingent liabilities that might have t'o be met if the railroad company should maintain against the government its rights to certain of the lands in question which were held by Cole and Harris under contract' from the railroad. In October, 1902-, Harris gave Cole an option in writing on his interests in the properties, as follows: The 200 shares of Rancho Yerde stock for $26,100. Interest in all other properties “over there,” $15,000. Later on, October 28, 1902, a thirty-day option more formally drawn and containing a more detailed description of the various properties, was executed by Harris to Cole, wherein Harris agreed to assign and convey to Cole the same property for a consideration of $25,000, and the assumption by Cole of the payment of all amounts due upon any contracts with the S. P. Railroad, and of a mortgage of $20,000, of which Cole and Harris were *97 each obligated to pay one-half. In explanation of these writings Harris testified that the two were, in effect, the same, that is, that the first showed the gross estimated values of the respective property, while those mentioned in the second were reduced to a net consideration. All the uncertainty as to the contingent liabilities was by the second instrument shifted so that Cole was to assume them and Harris could count on a fixed net sum. The latter was also intended to be a more formal expression of the transaction. These options were executed in the deed of Harris et ux. to Cole, dated November 25, 1902, except that instead of paying the full $25,000 cash Cole only paid $24,000, which Harris accepted as a full consideration under the second option. The testimony of Harris contained evidence to sustain the findings of the jury as to the transactions between Cole and Harris, except, perhaps, the finding that $25,000 was paid by Cole to Harris. That $20,000 was assumed by the parties to be the net value of the Rancho Verde, and $5,000 the net value of the Las Flores, for the purpose of fixing a net consideration in the last option, in no way detracts from the support which the facts here mentioned give to the inferences of the jury. Neither is it material that subsequently it was developed that nothing need be paid on the railroad contracts. It' also appears from the testimony of this witness that while Mr. Potter (who at one time owned 200 shares of the Rancho Verde stock) held his stock the witness placed a net value of $25,000 on one-third of the corporate property by offering Mr. Potter that amount for his stock.

It also appears from the testimony of Harris that he did not consider any proposition of a separate purchase by Cole of the Rancho Verde property and stock, that in the negotiations he wanted to clear up everything between him and Cole, and that all of the operations between him and Cole after giving the option related t'o the entire property covered by the option.

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Cite This Page — Counsel Stack

Bluebook (online)
106 P. 602, 12 Cal. App. 93, 1909 Cal. App. LEXIS 44, Counsel Stack Legal Research, https://law.counselstack.com/opinion/sterling-v-cole-calctapp-1909.