Teater v. Good Hope Development Corp.

93 P.2d 112, 14 Cal. 2d 196, 1939 Cal. LEXIS 324
CourtCalifornia Supreme Court
DecidedAugust 17, 1939
DocketL. A. 16480
StatusPublished
Cited by32 cases

This text of 93 P.2d 112 (Teater v. Good Hope Development Corp.) 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
Teater v. Good Hope Development Corp., 93 P.2d 112, 14 Cal. 2d 196, 1939 Cal. LEXIS 324 (Cal. 1939).

Opinion

THE COURT.

The appeal in this case was originally heard by the Fourth District Court of Appeal. Following a decision by that court, a petition for hearing by this court was granted. Consideration of the several points of law that have been presented by the respective parties to the litigation has resulted in a conclusion that the appeal was correctly decided by the District Court of Appeal. Its opinion rendered therein, which was prepared by Mr. Justice Griffin of that court, is therefore adopted by this court as its own. It is as follows:

“Velna L. Teater was the owner of certain real property known as the ‘Good Hope Mine’, situated in the county of Riverside. M. M. Teater is the husband of Velna L. Teater. On June 1, 1933, these appellants, as husband and wife, entered into a written contract for the conditional sale of this property to Clifford H. Marker. This contract was duly recorded September 13, 1934. Under its terms, among other things, it was provided that Marker should pay to appellants for this property the sum of $55,000, payable $3,500 upon the execution of the contract and the balance in specified monthly instalments; that title to the property should remain in Mrs. Teater until the full purchase price should be paid, at which time she would be required to deed the property to Marker. A given percentage of all ore was to be reserved to the seller, together with a 10 per cent royalty. Marker was to have posses *199 sion of the property and retain it so long as he should ‘fully perform each, every and all the terms, covenants and conditions of the within contract’. It was further provided that he should pay all bills and prevent any and all liens of mechanics and materialmen from being filed against the property; that time should be the essence of the agreement, and upon the violation of any of the covenants or conditions of the contract it should, at the option of the seller, terminate ; that upon such violation the seller should be released from all obligations in law and equity, to convey the property, and the property ‘and the appurtenances, and all buildings and other improvements shall become forfeited to second parties’; that 30 days’ notice should be given to Marker of the sellers’ intention to exercise the option to terminate; that he should, upon the termination of the contract for ‘any cause’ execute and deliver to seller, Velna L. Teater, a quitclaim deed; and deliver to her quiet and peaceable possession of the premises. Paragraph 15 of the contract provides that upon its termination, ‘all machinery and tools and other unattached and movable equipment which may be placed upon said premises by first party may be removed therefrom within forty-five days after the termination of the within agreement, provided, however, that no such tools or machinery shall be removed while first party may be in any manner indebted to second parties for past instalments due under the obligation of the within contract, and such machinery and equipment shall be deemed security for the payment of such instalments’.
“After execution of the contract Marker entered into possession of the premises. Thereafter the contract was assigned to respondent Good Hope Development Corporation (hereinafter referred to as the Development Corporation), which proceeded to attempt the mining of the property and the performance of the terms of the contract. The assignment of this contract was followed by a period of expansive and expensive development which resulted in placing on the property by the corporation of certain improvements, buildings, machinery and equipment. In the year between June, 1933, and June, 1934, the respondent Dill Lumber Company furnished certain lumber and materials to the Development Corporation and at different times the respondent Bank of Perris loaned money to it. At the time of the assignment and *200 subsequent thereto, Marker was the secretary oí the Development Corporation.
“On July 1, 1935, an instalment of the purchase price in the amount of $5,000 became due and payable and the purchasers were unable to make this payment. On July 3, 1935, appellant Mrs. Teater served respondents Marker and the Development Corporation with notice to pay this instalment within 30 days or she would terminate the contract if the payment was not made.
“On August 1, 1935, the respondent Development Corporation filed in the superior court of Riverside county a petition under the 'California State Moratorium Act (Stats. 1935, p. 1208). A hearing was had upon the petition and on November 14,1935, that court made an order granting it nine months ’ extension of time to make the instalment payments on the purchase price under the contract.
“Under the terms of this order the Development Corporation was permitted to remain in possession of the property and to mine it in a certain way and appellants were prevented from taking possession of the property or terminating the contract, ‘while said petitioners are complying with the terms and conditions of this order, and until the further order of this court, but in no event not later than February 1, 1937’. Respondent Development Corporation was also required to pay to appellants $250 per month upon the instalments of the purchase price, 8 per cent interest upon the unpaid instalments and an 8 per cent royalty. The purchasing parties remained in possession of the property, by virtue of this order, until June 30, 1936.
“While in possession of the property under this order, the purchasers failed to comply with its conditions and terms in many respects. They failed to pay appellants the1 monthly instalments of $250 for all months subsequent to March, 1936. They failed to pay the royalties due for the months of May, June, and July, 1936. They failed to pay their laboring men and in June, 1936, were indebted to them in the sum of $900. Marker advised the unpaid laborers to file claims for liens against the property, which they did. The Development Corporation ceased actual work on the mine by June 11, 1936. On June 18, 1936, the purchaser was indebted to appellants under the terms of the contract (but not under the court order) in an amount in excess of $18,000 for instalments past *201 due, and about $400 for royalties which they failed to pay over to appellants. On June 18, 1936, there was located on the premises a building, certain machinery, and equipment consisting in general of a mill erected upon the property by the purchaser and his assignee, together with the necessary machinery and equipment used in milling the ore obtained from the property.
“Plaintiffs and appellants in their complaint allege that they are entitled to the possession of the following described property and seek return thereof: 1 windows from corrugated iron mill building, 1 jaw crusher—14 in., 1 conveyor belt— 14"—200 ft., 1 marathon rod mill—4 x 8, 1 feeder and y2

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Bluebook (online)
93 P.2d 112, 14 Cal. 2d 196, 1939 Cal. LEXIS 324, Counsel Stack Legal Research, https://law.counselstack.com/opinion/teater-v-good-hope-development-corp-cal-1939.