Tarpey v. Curran

228 P. 62, 67 Cal. App. 575, 1924 Cal. App. LEXIS 430
CourtCalifornia Court of Appeal
DecidedJune 4, 1924
DocketCiv. No. 4715.
StatusPublished
Cited by9 cases

This text of 228 P. 62 (Tarpey v. Curran) 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
Tarpey v. Curran, 228 P. 62, 67 Cal. App. 575, 1924 Cal. App. LEXIS 430 (Cal. Ct. App. 1924).

Opinion

ST. SURE, J.

This is an action to recover 133,617.20, balance due on a last installment of $37,500 under agreement to purchase certain magnesite mining claims, to which plaintiff as vendor and defendants Curran and Phillips as vendees were the original parties, and for the foreclosure of a vendor’s lien on said mining claims.

Defendants Thomas, Winter, Piedra Magnesite Company and American Refractories Company are joined as claimants of interests in the mining property and a calcining plant, as purchasers, grantees, assignees, mortgagees and judgment creditors.

*577 The third amended complaint alleges that defendants Winter, Refractories Company and Thomas, with full knowledge of the mutual rights and obligations of the original parties to the contract, and while the same was wholly executory, promoted and incorporated the defendant Piedra Magnesite Company for the purpose of assuming said contract and performing its terms, and became stockholders of said company ; that said company, with knowledge of the rights and obligations of the parties to the contract, took and accepted an assignment of said contract, and agreeably to plaintiff assumed its obligations, entered upon the property and proceeded to the keeping and performance of the conditions and covenants of the contract; that it erected the plant mentioned, and otherwise performed under the terms of the contract and made installment payments thereunder with the exception of the payment sued on.

Defendants Phillips, Thomas and Belle M. Curran as executrix of her husband testator, denied generally the allegations of the complaint with respect to themselves, and cross-complained against the remaining defendants, alleging the execution of the original agreement; also execution of an agreement between themselves and Winter and the Refractories Company to form a corporation for the purpose of assuming, as assignee, the burdens of the original agreement, and holding them harmless thereunder, for the consideration of fifty per cent of the stock of said corporation and the assignment of said contract. The third amended complaint of the plaintiff is made part of the cross-complaint and the prayer is that as to any deficiency judgment that may be entered, the remaining defendants be adjudged primarily liable and these defendants (Thomas, Curran and Phillips) sureties.

Defendants Winter, the Refractories Company and the Piedra Magnesite Company answered separately the third amended complaint and the cross-complaint, after demurrers interposed thereto had been overruled. Trial was had, resulting in judgment for plaintiff, foreclosing any rights of all the defendants in the real property the subject of the original contract; and against defendants Curran, Phillips and Thomas for the amount sued for; for a sale of the property mentioned in the contract and for a deficiency judgment; denying judgment against defendants Piedra Mag *578 nesite Company, American Refractories Company and Emil Winter, both for deficiency judgment as to them on the original action, and a declaration of their status as principal debtors with Curran, Thomas and Phillips as sureties, on the cross-complaint of the latter.

Motion for new trial by plaintiff and cross-complainants on the grounds of the insufficiency of the evidence to support the findings, and that the decision was against law, is deemed denied by failure of action thereon within the statutory period. This is a joint appeal by plaintiff and cross-complainants from that part of the judgment adjudging that no deficiency judgment be entered or docketed against defendants Piedra Magnesite Company, American Refractories Company and Emil Winter; and that cross-complainants take nothing by their cross-complaint against said defendants. Defendant and cross-complainant Thomas appeals from the whole of the judgment against himself.

The record shows that on June 1, 1917, a contract of sale ' was entered into between plaintiff Tarpey as vendor and defendants Curran and Phillips as vendees for certain magnesite mining claims in Fresno County, California, for the purchase price of $75,000’, of which amount $2,500 was to be paid in cash and the balance in installments. A further consideration expressed in the contract was that within 120 days from its date the vendees, at their own cost and expense, should erect a calcining plant, crusher, works, machinery and appliances on the right of way of the Atchison, Topeka and Santa Fe Railway Company’s railroad, or ' otherwise in the vicinity of the said claims, and expend thereon a sum not less than $35,000 within said period, which plant was to be appurtenant to said mining claims and stand as additional security for the performance of the contract. A proviso that the vendees should, on demand, execute a mortgage on this plant to the vendor was included in the contract. The cash payment was made, and for the balance of the purchase price the vendees gave their promissory notes, due at the respective due dates of the payments to be made under the contract. Default in the payment of the last installment under the contract is the basis of this action. Defendant Thomas, though not a party to the contract, became jointly interested with the vendees by advancing one-third of the initial payment of $21,500 and en *579 tering into a separate agreement whereby they were to share equally under whatever arrangement was made for financing and operating the property. Thomas then was, and since April 25, 1916, had been, the representative in Tulare County, California, of the American Refractories Company to buy magnesite.

Shortly after the making of the Tarpey contract the vendees, together with Thomas, went east for the purpose of interviewing officers of the American Refractories Company with a view to the financing of the Tarpey property by the latter company. Mr. Curran took with him maps, photographs and a report prepared by engineer Coghlan on the property, together with a copy of the Tarpey contract. At Chicago and Joliet they met Messrs. Mossman and Allen, respectively manager and vice-president of the American Refractories Company, and had conversation with them respecting the business in hand. From Chicago the vendees, Thomas; and Mossman, at the suggestion and on the arrangement made by the last named, proceeded to Pittsburg to confer with Mr. Winter, the president of the Refractories Company. At Pittsburg a meeting was held at which Curran, Phillips, Thomas, Mossman and Winter were present, and after discussion an agreement drawn which was then signed by all those named there present, and a few days later by Mr. Allen at Joliet or Chicago. This instrument, called the Pittsburg agreement, was dated June 9, 1917, and dealt with the formation of a California corporation “for the purpose of mining, calcining and shipping magnesite,” to have five directors, three of whom (Allen, Mossman and Winter) “will represent the American Refractories Company,” and Cur-ran and Thomas “are to represent the California stockholders.” The stock of the corporation, of the value of $10,000, was to be divided equally between Curran, Thomas and Phillips as one party and the American Refractories Company. This agreement recited that “Messrs. Curran, Thomas and Phillips have secured an option to purchase a certain magnesite property located at Piedra, Fresno County, Cal., . . . and they have made a payment of $2500 on the purchase price of the property.

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Bluebook (online)
228 P. 62, 67 Cal. App. 575, 1924 Cal. App. LEXIS 430, Counsel Stack Legal Research, https://law.counselstack.com/opinion/tarpey-v-curran-calctapp-1924.