Uhlmann v. North Whittier Highlands, Inc.

334 P.2d 1022, 167 Cal. App. 2d 758, 1959 Cal. App. LEXIS 2399
CourtCalifornia Court of Appeal
DecidedFebruary 10, 1959
DocketCiv. 23410
StatusPublished
Cited by2 cases

This text of 334 P.2d 1022 (Uhlmann v. North Whittier Highlands, Inc.) 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
Uhlmann v. North Whittier Highlands, Inc., 334 P.2d 1022, 167 Cal. App. 2d 758, 1959 Cal. App. LEXIS 2399 (Cal. Ct. App. 1959).

Opinion

LILLIE, J.

This is an appeal from a judgment in defendant’s favor arising out of an action to recover a broker’s commission based upon full performance of an oral contract; or, in the alternative, the reasonable value of services rendered on the theory that full performance was prevented by defendants.

On pretrial, the parties entered into a written stipulation wherein they agreed, among other things, that plaintiff Burke (a licensed real estate broker) was employed in March, 1955, by defendant North Whittier Highlands, Inc. to obtain Shopping Bag Pood Stores as a lessee for a market to be constructed on defendant’s property “on terms and conditions satisfactory to the defendant, North Whittier Highlands, Inc.”; that defendant Shapiro, its president (a licensed contractor), handled the negotiations and discussions on behalf of the corporation; that it was understood between the corporation and Burke that if a lease with Shopping Bag Pood Stores was obtained “on terms and conditions satisfactory to North Whittier Highlands, Inc.” it would be obligated to pay a broker’s commission for securing the same.

*761 At the conclusion of plaintiffs’ case, the trial court granted a nonsuit as to defendant Shapiro and, after further admission of evidence, rendered judgment for North Whittier Highlands, Inc. It found there was no meeting of the minds on the terms of a lease or type of building to be constructed; no lease was entered into or executed between defendant and Shopping Bag Food Stores; plaintiffs did not perform their undertaking to procure Shopping Bag Food Stores as a lessee for the market to be constructed on terms and conditions satisfactory to defendant; plaintiffs earned no commission; and defendant did not prevent or frustrate performance by plaintiffs and did not, without cause, fail to consummate and withdraw from the lease arrangement.

Although there is sharp conflict on many points raised in the testimony, in construing the evidence most strongly in favor of respondent (Crisci v. Sorci, 115 Cal.App.2d 76 [251 P.2d 383] ; Monastero v. Los Angeles Transit Co., 131 Cal. App.2d 156 [280 P.2d 187]), the following is a fair summary of the facts pertinent to the issues raised herein.

In March, 1955, North Whittier Highlands, Ine. (hereinafter referred to as defendant), under an oral contract, employed Burke, now deceased, to obtain Shopping Bag Food Stores as a lessee for a market to be constructed by defendant on certain of its real property on “terms and conditions satisfactory to the defendant, North Whittier Highlands, Inc., ’ ’ on a lease on “terms and conditions satisfactory” to defendant. Shortly thereafter, with defendant’s consent, and at the insistence of Mr. Hayden, President of Shopping Bag, Burke associated plaintiff Uhlmann to assist him in the negotiations. Uhlmann was familiar with Shopping Bag’s needs, having already conferred with Hayden and taken him to inspect the location, and having discussed the “kind of deal” Shopping Bag would make with defendant. Hayden offered $26,400 minimum rental on a building to be constructed by defendant and told Uhlmann this was “absolute top.”

Following negotiations between plaintiffs and Hayden, defendant, on March 30, 1955, submitted to Shopping Bag a written offer (Exhibit 5) for the lease of a building to be constructed by defendant, which offer referred to defendant's pending zoning application. Hayden rejected it as wholly unsatisfactory and admonished Uhlmann for bringing it to him.

On April 14, 1955, defendant submitted a second written offer of lease (Exhibit 2) based on its proposal to construct a *762 market costing an estimated $275,000. This, too, was unsatisfactory to Shopping Bag.

However, on April 18, 1955, Shopping Bag, by letter, submitted to defendant its proposal (Exhibit 3) consisting of a counteroffer, setting forth the terms and conditions upon which it would be willing to enter into a lease, and proposing that defendant either accept it according to “the terms and conditions” therein, reducing the same to a formal lease within 60 days, or use the letter as Shopping Bag’s acceptance of defendant’s offer of April 14 “as modified” by its terms and conditions. Defendant protested the terms as not acceptable and, in an attempt to resolve defendant’s objections, Uhlmann arranged a conference at Shopping Bag’s offices on May 5, 1955, at which Burke, Uhlmann, Shapiro, Hayden and a Mr. Holland were present.

The evidence is in conflict as to what occurred at this meeting, but viewing it in the light most favorable to respondent, it is clear that a discussion of defendant’s finances took place. Hayden insisted that defendant build a market, similar to Shopping Bag’s new Palmdale store, of brick construction with a unit for refrigeration, air-conditioning and heat, and other features not in the contemplation of defendant’s plans. Shapiro advised those present that defendant had only $50,000 or $60,000 of its own cash to invest in a building. Based on the $26,400 minimum rental previously fixed by Shopping Bag, Hayden told him defendant could expect a loan of between $210,000 and $215,000, but that a larger loan was not possible. Knowing that the $26,400 was the most he could expect as minimum rental from Shopping Bag, Shapiro made it clear that the maximum of $60,000 cash, together with the $215,000 loan, making a total of $275,000, was defendant’s limit for construction of the market. He stated he believed the cost of the building on which Hayden insisted would exceed the $275,000 limit and defendant could go no further with the deal until the cost of such building could be obtained. Hayden said he would authorize Shopping Bag’s contractor, Mr. Hahn, to disclose the cost figures to defendant.

On May 11, 1955, Hahn advised Shapiro that the building would cost in excess of $300,000, of which Shapiro shortly thereafter informed Uhlmann. Defendant, before March 30, and on May 5, having fully presented the facts concerning its financial ability, plaintiffs then knew defendant could not execute a lease which would bind it to construct a building at such a cost.

*763 At this point, the record is silent concerning any effort on the part of plaintiffs to influence Shopping Bag to reduce its demands or waive any of its requirements; nor does the evidence disclose that plaintiffs in any way sought to aid their principal by requesting Shopping Bag to increase the minimum rental or by working out a new proposal.

Negotiations having failed to materialize an agreement, defendant opened them with Fitzsimmons Thriftimart Markets, and on June 16, 1955, executed a formal lease on a building to be constructed by defendant on the same property.

Appellants contend there is no substantial evidence to support the trial court’s finding that there was never a meeting of minds between defendant and Shopping Bag, and the counteroffer of April 18 was not accepted.

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Bluebook (online)
334 P.2d 1022, 167 Cal. App. 2d 758, 1959 Cal. App. LEXIS 2399, Counsel Stack Legal Research, https://law.counselstack.com/opinion/uhlmann-v-north-whittier-highlands-inc-calctapp-1959.