Tropical Investment Co. v. Brown

187 P. 133, 45 Cal. App. 205
CourtCalifornia Court of Appeal
DecidedDecember 22, 1919
DocketCiv. No. 3083.
StatusPublished
Cited by6 cases

This text of 187 P. 133 (Tropical Investment Co. v. Brown) 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
Tropical Investment Co. v. Brown, 187 P. 133, 45 Cal. App. 205 (Cal. Ct. App. 1919).

Opinion

BEASLY, P. J., pro tem.

We are constrained to open this opinion with the statement that, after patiently examining the 176 pages of the appellant’s brief, we are unable to form a clear idea therefrom of the essential facts of this case or the legal points upon which the appellant relies for a reversal of the judgment. We have, therefore, gone directly to the record, and from an examination of the pleadings, findings, judgment, and the evidence, we have abstracted the complicated facts upon which the cause must be determined, and endeavored to clear up the legal questions which seem to arise therefrom.

The purpose of the action is to obtain possession of the Morris Hotel property of the city of Los Angeles. The complaint contains two counts,-—the first in ejectment, "the second - upon an unlawful detainer. Prom the elaborate findings in the case, it appears that the trial court based its judgment upon the following facts:

Plaintiff is a corporation organized under the laws of the state of Utah. On October 30, 1914, defendant Edna A. Brown and one Howard entered into an agreement, in writing, by which Howard purported to lease to the defendant Brown a certain hotel building to be erected on a lot described in the complaint, and situated in the city of Los Angeles, and this building was, when completed, to be called the Morris Hotel.

*207 The lease was to run for ten years, and to begin December 1, 1915, the term of the lease being orally agreed to be from December 1, 1915, to November 30, 1925. These dates were left blank in the lease, which was signed by the parties, and were inserted later by some unidentified third party without authority from either party to the lease. The lump rent was to be $98,820, payable in monthly installments of $823.50, in advance, on the first day of each month.

The date of the payment of the rent was also left blank, and no time was fixed in the instrument for the beginning of the payment of the rent.

On November 9, 1914, the parties agreed, also in writing, that the term of the lease should commence at the date of the completion and acceptance of the building by the city building department of the city of Los Angeles, which completion, it was agreed, should be not later than February 15,

1915. Thirty days’ grace for completion was allowed, but it was stipulated that should this thirty days be exceeded, an amount equal to the rental “to accrue” until the building should be completed and so accepted should be forfeited to the lessee. The defendant Brown took possession of the hotel in October, 1915, and the building was completed on or about November 1, 1915.

On October 28, 1915, defendant Brown paid Howard one thousand dollars, “pursuant to said agreement of October 30, 1914,” and “as part consideration for giving said agreement,” which provided that $823.50 of this one thousand dollars should apply to the first month’s rent to be paid thereunder, and that the balance of said one thousand dollars, to wit, $166.50, was to be applied as part payment for the second month’s rent. Contemporaneously with the payment of the one thousand dollars on October 28, 1915, Howard gave Miss Brown a receipt with the O. K. of one Paden initialed thereon, which reads as follows:

“B. Los Angeles, Cal., Oct. 28, 1915.
“Received from Edna A. Brown Four Thousand Seven Hundred and five 75/100 dollars, in full for rent on Hotel Morris No. 811 E. 5th" St., from Nov. 11, 1915, to April 22, 1916.
“This includes the $1,000.00 paid to secure lease.
“$4705.75. Charles Wellington Howard.
“O. K.-¥m. W. Paden. B.”

*208 The court finds that there was no consideration for this receipt other than the one thousand dollars.

On October 27, 1915, Miss Brown, together with Howard and Paden, applied to the Fidelity Savings and Loan Association for a loan of $1,818, with which to pay a note secured by a chattel mortgage on Miss Brown’s furniture situated in the Morris Hotel. The loan was made, and Howard thereupon gave the Fidelity Savings and Loan Association an order on Miss Brown, running against her rent for this amount, which order was accepted by her; and the money was thereupon delivered by the lender to Howard, Paden, and Miss Brown, who paid the debt secured by the chattel mortgage, and obtained the release of the furniture from the lien thereof. The Fidelity Savings and Loan Association had, at no time, any knowledge of the giving of the receipt to Miss Brown for the $4,705.75. Miss Brown, in consideration of this loan, signed another agreement, the meaning of which, apparently, will be important here. It is as follows: “As holder of lease covering premises known as Lots Five (5) and Six (6), Block Eleven (11) of Wolf skill Orchard Tract, in the City of and County of Los Angeles, State of California, for and in consideration of free rental for the month of November, 1915, and other valuable considerations, including assistance in releasing mortgage on my furniture in the 'building on said lots, I hereby waive and declare fully satisfied all claims which I have against the lessee under said lease or against the premises, the owners of said premises or the Fidelity Savings and Loan Association, for any damages or loss occasioned through any delay or failure of any kind resulting from delay in completion of the building on said premises, and I hereby accept said building as being fully in accordance with the terms of the lease aforesaid and agree to enter upon possession of the same without delay and to be bound by all the provisions of the lease from this date, waiving all claims of every sort under said lease up to this day.”

On June 25, 1914, Howard, to obtain money to construct the building, borrowed fifty thousand dollars of the Fidelity Savings and Loan Association, gave his promissory note therefor, and executed a trust deed on the premises to the Title Guarantee and Trust Company, as trustee, with the Fidelity Savings and Loan Association as beneficiary, to *209 secure this note, and on June 17, 1915, to complete the building, Howard borrowed another twenty-four thousand dollars, gave his note therefor, and executed another trust deed to the Title Guarantee and Trust Company, as trustee, and the lender as beneficiary, to secure the same. This latter deed was recorded on June 29, 1915. It should be noted, in passing, that both these trust deeds were given before the $1,818 loan and the execution of the contemporaneous instrument, above set forth. Under the latter trust deed the Fidelity Savings and Loan Association advanced further sums to Howard until the total loan amounted to $36,698.

Howard defaulted in the payment of these loans, and- on December 17, 1915, the trustees sold the premises under the latter trust deed, namely, the trust deed executed on June 17, 1915. The sale took place on January 15, 1916, the purchaser being the Fidelity Savings and Loan Association, and the amount paid being thirty-eight thousand dollars, and thereupon the Title Guarantee and Trust Company, as trustee, executed a deed to the Fidelity Savings and Loan Association, as purchaser, conveying the property to it.

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Bluebook (online)
187 P. 133, 45 Cal. App. 205, Counsel Stack Legal Research, https://law.counselstack.com/opinion/tropical-investment-co-v-brown-calctapp-1919.