Tonini v. Raccoon Straits Land Co.

261 Cal. App. 2d 105, 67 Cal. Rptr. 719, 1968 Cal. App. LEXIS 1723
CourtCalifornia Court of Appeal
DecidedApril 15, 1968
DocketCiv. No. 23218
StatusPublished
Cited by1 cases

This text of 261 Cal. App. 2d 105 (Tonini v. Raccoon Straits Land Co.) 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
Tonini v. Raccoon Straits Land Co., 261 Cal. App. 2d 105, 67 Cal. Rptr. 719, 1968 Cal. App. LEXIS 1723 (Cal. Ct. App. 1968).

Opinion

AGEE, J.

This action was commenced on November 13, 1963 by Bertha Tonini and Edward Milton Tonini, her husband. He died on December 20, 1963, and his co-executors [106]*106(Bertha and their son, Edward, Jr.) were substituted in his place as a party plaintiff. The deceased is hereafter referred to as “ Tonini. ’ ’

The defendants who have appeared in the action are Robert Moor and Nella Moor, his wife, Tiburón Tidelands Co., a corporation (hereafter “TTC”), Norman Colivcr, O.razio G-. Rosolia, Raccoon Strait Land Company, a corporation (hereafter “Raccoon”), Robert L. Harmon, Robert D. Mackenzie and Donald F. Williams, individually and as co-partners in Moana Associates (hereafter ‘‘Moana”).

On August 17, 1964 a summary judgment was rendered in favor of Rosolia and Raccoon (Code Civ. Proc., § 437c). On December 28, 1964 the action as against Moana was dismissed after plaintiffs failed to amend their pleadings within the 30-day period allowed by the court upon the sustaining of Moana’s demurrer thereto (Code Civ. Proc., § 581, subd. 3). On January 11, 1965 a summary judgment was rendered in favor of Coliver (Code Civ. Proc., § 437c). Plaintiffs have appealed from each of these three judgments.

The action went to trial against the Moors and TTC on May 25, 1965. Four of the issues set forth in the pretrial order were severed by stipulation “for the purpose of entry of immediate Judgment.” Judgment on these issues was rendered in favor of the Moors and TTC on June 11, 1965, after a trial lasting six days (referred to herein as “first Moor judgment”) .

The trial was resumed on June 21 and ended on June 30, 1965. Judgment on the remaining issues raised by plaintiffs’ complaint and amendment thereto was rendered in favor of the Moors and TTC on November 22, 1965 (referred to herein as “second Moor judgment”). Both of these judgments are now final.

All respondents in the three consolidated appeals now before us have moved jointly to dismiss said appeals on the ground that, when the judgments in favor of the Moors and TTC became final, the pending appeals now before us became moot. The doctrine relied upon is sometimes referred to as ‘ ‘ collateral estoppel by judgment. ’ ’

Summary of Plaintiffs’ Allegations Against Rosolia and Raccoon

On March 27, 1958 Tonini entered into a lease-option agreement with Northwestern Pacific Railroad involving a tract of 1,200 front feet of tideland located at Tiburón, hereafter 11 Tiburón property. ’ ’

[107]*107The lease was tor five years, with the right to extend such term for an additional five years if the payments called for thereunder had been met.

The lease gave Tonini an exclusive option to purchase the property by payment of $320,000 on or before September 27, 1963.

During the summer of 1961 Moor offered to buy the westerly 100 front feet of the tract for $200,000, but Tonini refused to sell all or any part of it to him.

About December 31, 1961 Rosolia attempted to purchase the same westerly 100 front feet. Unknown to Tonini, Bosolia was acting for Moor.

Tonini countered with a proposal that, if Rosolia would provide the financing for the $320,000 needed to exercise the option and the financing for the development of the entire tract, he would sell to Rosolia a one-half interest in the lease-option agreement for $150,000. Tonini further proposed that $100,000 of the $150,000 would be used for rent and taxes due under the lease-option agreement and for architectural and legal services needed to carry out the purposes of the proposed joint venture.

On January 20, 1962 Rosolia orally accepted and agreed to Tonini ;s proposal. Thereafter, several conferences were held with respect to finalizing the joint venture. Moor was present at these conferences, representing that he was there as an accountant assisting Rosolia.

In reliance upon the acceptance of his proposal by Rosolia, Tonini made no further attempts to take care of the rent and tax payments past due under the terms of the lease. The lessoroptionor was threatening a cancellation of the lease-option agreement and Moor and Rosolia were informed of this.

On February 18, 1962 Rosolia presented Tonini with a memorandum of agreement which did not correctly reflect the proposal orally accepted by Tonini on January 20, in that it substituted Raccoon, whose stock was owned in equal shares by Moor and Rosolia, in place of Rosolia, and as to the $150,000 to be put up by Rosolia, only $50,000 was to go to Tonini and the balance was to be treated as a loan of $100,000 by Raccoon to the joint venture.

Because he was threatened with a substantial financial loss if these new terms were not accepted, Tonini entered into the following agreement with Moor and Rosolia: a corporation (TTC) was to be formed to carry on the joint venture. Moor and Rosolia were to receive 51 percent (510 shares) and

[108]*108Tonini was to receive 49 percent (490 shares) of the voting (common) stock in said corporation; however, Tonini was to retain 50 percent of the voting rights, to the end that, he would have an equal voice in the management of the affairs of said corporation; Moor and Rosolia were to pay $50,000 to Tonini and $100,000 to TTC, in return for which Moor - and Rosolia were to receive nonvoting, noncumulative, nonparticipating preferred stock in TTC. The agreement was executed in writing on February 19,1962.

TTC was thereafter formed and its stock was issued in accordance with the above agreement. Tonini executed an assignment of the lease-option agreement to TTC on May 26, 1962.

Aside from the $50,000 which Tonini received from Moor and Rosolia, the major consideration relied upon by Tonini in entering into this agreement was the representation of Moor and Rosolia that they would pay off the option price of $320,000 and provide and/or obtain the financing of the development of the Tiburón property.

Moor never intended to perform the agreement. He intended to defraud Tonini out of an interest in the Tiburón property.

During the months following the February 1962 agreement, Rosolia advised Tonini that he had sold his one-half interest in Raccoon to Moor. Shortly thereafter all of Raccoon’s stock in TTC was transferred to Moor and his wife. (Apparently, the stock interest of Moor and Rosolia in TTC was held in the name of Raccoon.)

Plaintiffs’ allegations as to the events which occurred thereafter do not involve Rosolia or Raccoon. The final allegation as to this phase of the ease is as follows: “That at all times herein mentioned, defendant Rosalia acted by, for, through and on behalf of defendant Robert Moor. ’ ’

Thus plaintiffs’ charges against Rosolia are in his capacity as Moor’s -agent or co-venturer. In either capacity, Rosolia is entitled to the defense of collateral estoppel by judgment.

Plaintiffs’ Allegations Against Coliver

Coliver comes into the ease, through the amendment to the complaint, as “50th Doe.” There are nine references to him in the plaintiffs’ charging allegations, the first of- which makes this identification, “defendants Moor and- Rosalia and Moor’s attorney and associate, Norman Coliver, represented,

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Bluebook (online)
261 Cal. App. 2d 105, 67 Cal. Rptr. 719, 1968 Cal. App. LEXIS 1723, Counsel Stack Legal Research, https://law.counselstack.com/opinion/tonini-v-raccoon-straits-land-co-calctapp-1968.