Traylor v. Los Angeles Mountain Park Co.

65 P.2d 921, 19 Cal. App. 2d 493, 1937 Cal. App. LEXIS 462
CourtCalifornia Court of Appeal
DecidedMarch 11, 1937
DocketCiv. No. 10223
StatusPublished

This text of 65 P.2d 921 (Traylor v. Los Angeles Mountain Park 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
Traylor v. Los Angeles Mountain Park Co., 65 P.2d 921, 19 Cal. App. 2d 493, 1937 Cal. App. LEXIS 462 (Cal. Ct. App. 1937).

Opinion

BISHOP, J., pro tem.

The plaintiff recovered damages in excess of $36,000, because of the repudiation by the defendants of a contract in which the parties to this action were mutually interested, and the defendants appealed. From the face of the contract it would appear that by its own terms it had expired before the repudiation took place. This defect, which obviously would have been fatal to the plaintiff’s cause, was cured, according to the court’s findings, by a course of conduct on the part of the defendants which estops them from claiming that the contract had expired, and which amounts to a waiver of the provision that it would expire on the date named. We have come to the conclusion that the finding of estoppel and waiver is not supported by the evidence, and further, that as to the defendant Bell, the finding that he repudiated or otherwise breached the contract was not warranted by the evidence. In reaching our conclusion we have taken advantage of findings which, with his wonted fairness, the trial judge made because he found the facts required them, although they were adverse to the winning party.

The contract upon which our interest centers was the third of a succession of contracts having as an object the exploitation of a rich and extensive deposit of limestone lying within the boundaries of Los Angeles City. This third contract was attached to the complaint as “Exhibit C”, a designation made use of throughout the subsequent record. The territory where the deposit had been discovered was a part of a large tract of land owned by the defendant Los Angeles Mountain Park Company, a corporation, to which we shall hereafter refer as the “Mountain Company”. The plaintiff and a Mr. Day were led by years of experience in the manufacture and erection of machinery for the crushing of rock in mining operations, to become interested in and to investigate the possibilities of this rich deposit of limestone. So favorable did they find conditions that an ambitious scheme for converting the stone into cement and the cement into riches was agreed upon.

A corporation, it was determined, should be formed under the laws of Delaware, and by the time exhibit C was executed it had been formed, as the agency by which the project was to be carried out. To it the defendant Mountain Company agreed to convey one hundred acres of the choicest parcel of its lime deposit land, and to it it gave an option for a ninety-[495]*495nine year lease on an additional four hundred acres, to be exercised after the manufacture and sale of cement had been going on for a period of three years. The conveyance of the one hundred acres was not to take place until bonds and preferred stock in the Delaware corporation had been sold to place $1,200,000 in the corporation’s treasury. The consideration to be received by the defendant Mountain Company for the conveyance of its land was one-third of the common stock of the Delaware corporation. The remaining two-thirds of this common stock was to go to the individuals who were parties to the contract, that is, the plaintiff, Mr. Day and a Mr. Howell, to whose rights and burdens the defendant Bell became a successor in April, 1930.

Exhibit C was executed February 25, 1929, by which time it had become apparent that a permit to construct and operate a cement plant at the place planned was not to be readily obtained. In their contract the parties provided that the conveyance of the hundred acres was to be made “When all of the zoning permits herein contemplated shall have been obtained, and all the financing and plans of operation of the new corporation have been completed. ’ ’ The relative order of the permit and financing was indicated in paragraph XIY of the contract, where we also find the term of its life expressly set out:

“The second parties must complete and fulfill all of the requirements above set forth in Article II, as to financing the new corporation and issuing stock, within three (3) months after the necessary zoning and other permits are obtained. If said permits are not obtained prior to June 15, 1930, this agreement will terminate.”

The difficulties attendant upon the effort to surmount that which was thus set up as the first hurdle, the obtaining of zoning permits, we need not recount, for the plaintiff did not seek recovery on the theory that the defendants had been derelict in any duty to obtain, or to make every reasonable effort to obtain, the permits at least seemingly required. No permit had been obtained up to July 9, 1931, the date of the second of two communications which form the basis of plaintiff’s cause of action, one for the anticipatory breach of a contract by repudiation.

It is obvious that in order to allege and prove a cause of action for the breach in July, 1931, of a contract which by [496]*496its terms terminated in June, 1930, the plaintiff had to allege and prove an avoidance of those terms. This he attempted in his original complaint, by alleging that the provision that the contract should terminate in June, 1930, was expressly and mutually waived and that the defendants were estopped to assert that the provision was not waived. About half way through the trial, an amendment to the complaint was filed to explain at greater length the theory on which the contract was claimed to have lived beyond June, 1930. The allegations of the amendment which we need to consider were carried over into the trial court’s findings in these words: “ . . . both before and after said 15th day of June, 1930, and at all times up to said breach of said agreement, all the parties to said agreement treated it as a valid and subsisting contractual obligation, and so conducted themselves by word and act with reference thereto, to the knowledge of plaintiff herein, and the defendants herein and each of them repeatedly represented to the plaintiff that they and each of them considered said agreement as such valid and subsisting contractual obligation and as not terminated by reason of any expiration date therein provided, or for any other reason whatever; that said conduct of said defendants and said representations of the said defendants were intended to be acted upon by the plaintiff herein, and were done and made under circumstances such that the plaintiff had the right to believe and did believe that said defendants so intended; that the plaintiff did in fact act upon said conduct and said representations of said defendants; that in reliance upon said conduct and said representations of said defendants, and solely because thereof, plaintiff was induced to and did devote a large amount of time and services and did expend large sums of money in furtherance of the project set forth in said agreement exhibit C; that the plaintiff so devoted said time and services and so expended said sums of money with the knowledge and consent of the defendants and each of them; that the plaintiff would not so have devoted said time or said services or so expended said sums of money, or any of them, had it not been for said conduct and said representations on the part of said defendants; and said defendants knew that, had it not been for said conduct and representations on their part and on the part of each of them, the plaintiff would not have' so devoted said time or services, or so expended said sums of [497]

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Cite This Page — Counsel Stack

Bluebook (online)
65 P.2d 921, 19 Cal. App. 2d 493, 1937 Cal. App. LEXIS 462, Counsel Stack Legal Research, https://law.counselstack.com/opinion/traylor-v-los-angeles-mountain-park-co-calctapp-1937.