Stratton v. California Land & Timber Co.

24 P. 1065, 86 Cal. 353, 1890 Cal. LEXIS 1033
CourtCalifornia Supreme Court
DecidedNovember 8, 1890
DocketNo. 13568
StatusPublished
Cited by9 cases

This text of 24 P. 1065 (Stratton v. California Land & Timber Co.) 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
Stratton v. California Land & Timber Co., 24 P. 1065, 86 Cal. 353, 1890 Cal. LEXIS 1033 (Cal. 1890).

Opinion

Gibson, C.

— The plaintiff brought this action to quiet his title to four thousand acres of land situate in Plumas County. All the defendants defaulted except Jacob Goldberg, Charles M. Fry, A. F. Higgins, Hugh Craig, and Charles Kohler. Of the latter,Goldberg filed a disclaimer, and the others filed answers and cross-complaints, to [355]*355which the plaintiff answered, putting in issue the new matter set up in each. Fry and Higgins, in their cross-complaint, claimed under a deed of trust executed to themselves and one Charles Kohler, by the California Land and Timber Company, to secure certain amounts and obligations due from the company to various persons and corporations, and also to secure a loan not exceeding one hundred thousand dollars that the company was at the time negotiating for. Craig, in his cross-complaint, claimed as receiver in an action brought by Fry and Higgins, as such trustees, in the United States circuit court of the ninth judicial district, and Kohler, in his cross-complaint, claimed as assignee in insolvency of the California Land and Timber Company. Judgment passed for the plaintiff against all of the defendants, and those of the defendants who filed answers and cross-complaints bring this appeal from the judgment against them, and an order denying them a new trial.

On March 15, 1886, an agreement, which is referred to in the record as exhibit A, was made between the plaintiff and one W. C. Roberts, whereby the plaintiff agreed to sell and Roberts to buy the land in controversy for three dollars per acre, payable in the following installments: 25 cents per acre upon signing the agreement, $1.25 per acre on or before April 1, 1886, and the remaining $1.50 per acre one year from the date of the agreement, with interest on the last installment at the rate of six per cent per annum; provided, however, that the last installment should not be payable until plaintiff should be able to convey to Roberts or his assignees a clear title to the land, based upon patents from the United States or this state, which he was to acquire within two years from the date of the contract; and provided, also, that in case of non-payment by said Roberts of any of the purchase-money, according to the terms of the agreement, the party in default should not be liable [356]*356to the other party in damages for such default, and the remedy of the party injured should consist only of the right to cancel the agreement, and refund, with interest, or retain all the moneys paid under the agreement, as the case might be.

This contract was entered into by Roberts at the request of A. T. Nation, who at the time was the manager and also a director of the California Land and Timber Company, and immediately after it was executed Roberts made a separate and independent contract with the California Land and Timber Company to sell to it the same land for five dollars per acre, three dollars per acre payable in three several installments, upon the payment of which Roberts was to convey the land to the company, and the latter, in return, was to give to Roberts its notes, secured by mortgage on the same land, for the remaining sum of two dollars per acre, payable three years from the date of the contract, with interest thereon from the said date at eight per cent per annum, payable semi-annually, all subject, however, to Roberts’s ability to acquire clear title to the land, based upon patents from the United States or this state. This contract is referred to in the record as exhibit B. Upon the execution of exhibit B, Roberts, at the request of A. T. Nation, assigned to him exhibit A, subject to exhibit B, and assigned the latter to him also, and thereafter, on the 29th of September, 1887, A. T. Nation, in consideration of one dollar, assigned to his brother, G. M. Nation, all the rights and benefits he acquired by his assignments from Roberts. Roberts, in making exhibit A, and in assigning the same to A. T. Nation, it appears, acted solely for and at the request of the latter. Of this the plaintiff had no notice, but dealt with Roberts in his individual capacity alone, and had no reason to believe that Roberts was acting otherwise. The first installment under exhibit A was paid by Roberts, and the second by A. T. Nation. Both installments were in fact paid [357]*357with the moneys of the California Land and Timber Company, but plaintiff did not have either notice or knowledge of the fact, nor did he have either notice or knowledge or any reason to believe that A. T. Nation acted for any one but himself.

On January 31,1887, the California Land and Timber Company executed the deed of trust above mentioned, by which it conveyed all its property to the defendants Fry and Higgins and another, who accepted the trust; and the sum of twenty-five thousand dollars was advanced to the company by Fry and Higgins, pursuant to the trust.

In July, 1887, the plaintiff procured state patents to the land in question; and, not having either notice or knowledge of the interest of any one else in the land, he, in the same month, notified Roberts and A. T. Nation that he had procured patents to the land, and at the same time tendered them a sufficient deed thereto, and demanded of each the balance due under exhibit A, which demand they each neglected and refused to comply with. Said Nation, though, notified the company and its principal stockholders of the demand, and endeavored to procure the amount due plaintiff under said exhibit, and was assured, from time to time, by persons connected with the company, that the money would be paid. These assurances Nation repeated to the plaintiff, without, however, notifying or suggesting to him that the company claimed or had any interest under exhibit A. Fry and Higgins were also notified by A. T. Nation of the demand of plaintiff, but they never notified plaintiff that they or the company claimed or had any interest under the said exhibit. In November of the same year, the company was, by the superior court of the city and county of San Francisco, adjudged to be insolvent, and the defendant Kohler was appointed, and he duly qualified as assignee of all the estate of the insolvent company.

Thereafter, on or about January 4, 1888, in an actipn [358]*358brought in the United States circuit court in and for the ninth judicial district, by Fry and Higgins, as trustees, against the company, the defendant Craig was appointed and he duly qualified as receiver of all the property of the company. February 28, 1888, plaintiff procured from Roberts, in consideration of $50 paid to him, a release and quitclaim of all his interest in the premises in question, and a cancellation of exhibit A; and on March 20th of the same year, he procured from A. T. Nation, in consideration of $750 paid to him, a similar release and quitclaim of all his interest in the said premises. The several positions of the appellants are, that Fry and Higgins are the owners under the trust deed of whatever interest the company acquired in the land; that Craig, as receiver, is entitled to the possession of the land; and that Kohler, as assignee, is entitled to all that may remain of the property or the proceeds thereof, after the objects of the trust deed are satisfied. And they contend that, as exhibit A was entered into by Roberts at the request of A. T. Nation, .who was at the time the general manager of the California Land and Timber Company, and as the money paid under such contract was the money of the company, a resulting trust arose in favor of the company, and Roberts thereby became the. trustee of the company.

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Cite This Page — Counsel Stack

Bluebook (online)
24 P. 1065, 86 Cal. 353, 1890 Cal. LEXIS 1033, Counsel Stack Legal Research, https://law.counselstack.com/opinion/stratton-v-california-land-timber-co-cal-1890.